FAFSA - IRS Data Retrieval and IRS Tax Transcript Instructions

The Office of Federal Student Aid and the Internal Revenue Service have worked together to develop a process, known as the IRS Data Retrieval Process, to simplify the steps to complete the Free Application for Federal Student Aid (FAFSA).

What is the IRS Data Retrieval?
This process will allow you to automatically have your family’s income information input into your FAFSA. The process enables FAFSA to request and retrieve income and tax data directly from the IRS.

All 2012-2013 FAFSA On The Web applicants, and the parents of dependent applicants, who indicate that they have filed their federal tax returns prior to completing their FAFSA may use the FAFSA-IRS Data Retrieval process to complete their FAFSA.

Some Families Will Not Be Able to Use the IRS Data Retrieval Tool:

• If the parents of a dependent student file separate tax returns;
• If an applicant’s parent has a change in marital status after the end of the tax year on December 31, 2011;
• If anyone has filed an amended tax return;
• If the applicant or applicant’s parents have filed a foreign tax return.

Families Unable to Use the IRS Data Retrieval Tool:
If you are unable to use the IRS Data Retrieval Tool you must request an IRS Transcript to verify your income. Please complete IRS form 4506-T.

How the IRS Data Retrieval works:
If you and your parents have filed federal tax returns before starting the FAFSA, you will be able to obtain your income information while completing the FAFSA. If you have not filed federal tax returns before starting the FAFSA, you may input the IRS Data Retrieval information after filing federal tax returns by using the FAFSA corrections process.

Electronically filed tax return information will be available online from the IRS site 1-2 weeks after the return has been filed; data from paper tax returns will be available in 6-8 weeks.

Families must actively choose to utilize the data retrieval. When you choose to do so, you will be transferred to the Internal Revenue Service web site. You will need to authenticate your identity before any personal information is displayed.

During the completion of the FAFSA, you will have the option to “Transfer” tax information to the FAFSA. Applicants can also choose NOT to transfer the data to the FAFSA. Transferred data will have a notation - “Transferred from the IRS.”

FAFSA Corrections:
Many parents of our new students will not have their federal tax returns completed by the application deadline of February 1, 2012. If you are a new student, you and your parents can use “estimated income” information on the initial FAFSA. You and your parents will be able to use the FAFSA corrections process once your 2011 tax returns are completed.

Starting around April 1, 2012, FAFSA will remind applicants through emails and other communications that once they have filed their income tax return, they should use the FAFSA corrections process to update their FAFSA, using the FAFSA-IRS Data Retrieval process. Subsequent messages will be sent every 45 days until mid-September, then every 60 days until the end of the processing cycle.