Verification Keep the Conversation Rolling… Jo Holland Pulaski Technical College AASFAA Spring Conference

Why Verify? Verification Tracking Groups (Process and Documentation) Resources Discussion

Why Do We Verify? We verify to ensure that the application data submitted is accurate before eligibility is determined and Title IV funds are disbursed.

Verification Summary of Tracking Groups V1 Standard Verification Group V3 Child Support Paid Verification Group V4 Custom Verification Group V5 Aggregate Verification Group V6 Household Resources Group

V1 Standard Group (Tax Filers) Items To Be Reviewed AGI U.S. Income Tax Paid Untaxed Portions of IRA Distributions Untaxed Portions of Pensions IRA Deductions & Payments Tax Exempt Interest Income Education Credits Documentation IRS DRT Tax Return Transcripts Alternate documentation where allowed (amended returns, foreign returns, etc.) AVG Income Information for Individuals with Unusual Circumstances (Filing Extension Grant by the IRS, Amended IRS Income Tax Return, Identity Theft, etc.) AVG

V1 Standard Group (Non-Tax Filers) Item To Be Reviewed Income earned from work AVG 81 Documentation (income earned from work) Must receive a W-2 form for each source of employment income. And, Must receive a signed statement certifying a. Individual has not filed and not required to file tax return for 2014; b. Sources of income earned from work & amounts from each source for tax year 2014 not on a W-2.

V1 Non-Tax Filers (Cont’d) If you question that the tax filer is not required to file, you must require the applicant to submit a “Verification of Non-Filing Letter”. Use “Get Transcript Online” or, Form 4506-T and checking box 7 Note: “Verification of Non-Filing Letter” for 2014 tax year may not be available until after June 15, 2015.

V1 All Applicants Remaining Items Number in household AVG 84 Number in college AVG 85 Food stamps (SNAP) Supplemental Nutrition Assistance Program AVG 85 Child Support Paid (CSP) AVG 85-86

V3 Child Support Paid Verification Group Students must verify child support paid by them or their spouse, their parents, or both. Child Support Paid (If Reported on ISIR) – Documentation Statement signed by applicant/parent certifying – Amount of CSP – Name of person who paid the child support – Name of person to whom child support was paid – Names of children for whom child support was paid – Age of children for whom child support was paid AVG If you have reason to believe the information is inaccurate, the applicant must provide the institution with supporting documentation (divorce decrees, checks, records of electronic child support payments made, etc.)

V4 Custom Verification Group Students must verify high school completion status & identity/statement of educational purpose. in addition to receipt of SNAP benefits and payment of child support. High School Completion AVG Most Common Documents Submitted:  Copy of high school diploma  Copy of a final official high school transcript with date diploma was awarded  GED certificate or transcript that indicates exam passed  Other documents listed in AVG 86 In cases where documentation is unavailable, see AVG 87, you may accept alternative documentation to verify high school completion status.

V4 Custom (cont’d) Identity/Statement of Educational Purpose You must use the exact language given Documentation (statement completed in person)  Must be completed in presence of authorized individual of the institution  Student must provide government-issued photo id  Original statement & copy of photo id must be maintained the required Title IV record retention period. Refer to IFAP Documentation (notary signed)  Must submit statement, certification from notary and a copy of the same id presented to notary. Cannot be faxed or ed.  Original statement & copy of photo id must be maintained the required Title IV record retention period.

V4 and V5 Reporting Schools are required to report through FAA Access Online the outcomes of verifying high school completion status and identity/statement of educational purpose for applications with tracking flags V4 and V5. General Instructions for this process are explained on pages AVG Remember, this reporting is required for verifications selected by CPS only, not your school!

V5 – Aggregate Verification Students must verify high school completion status & identity/statement of educational purpose in addition to the Standard Verification Group (V1). High School Completion Status AVG Identity/Statement of Educational Purpose AVG 87 and, All items for Tax Filer (V1 Standard Group) AVG All items for Non-Tax Filer (V1 Standard Group) AVG 77

V6 Household Resources Group Students must verify items in the Standard verification Group as well as certain other untaxed income on FAFSA. (V1) All Items for Tax Filer (V1) all items for Non-Tax Filer Other untaxed income from FAFSA- – Payments to tax-deferred pension & retirement savings plans (Q 45a & 94a) – Child support received (Q 45c & 94c) – Housing, food & other living allowance paid to members of military, clergy & others (Q 45g & 94g) – Veterans non-educational benefits (Q 45h and 94h) – Other untaxed income (Q 45i & 94i) – Money received or paid on the applicant’s behalf (Q 45j)

V6 Household Resources (cont’d) Documentation for Other Untaxed Income- 1)Signed statement including sources & amounts of income for 2014 tax year; and 2)Copy of W-2’s for sources of employment income for 2014 tax year where applicable. AVG-84 You must get a copy of the W-2(s) for all persons in the Household Resources Group (V6), including tax filers who used the IRS DRT or acquired a tax transcript. Get W-2s for those in the household whose financial information appears on the FAFSA. Tax filers could have other untaxed income that was not transferred via the DRT or that did not appear on the tax transcript, and W-2s are used to verify whether there was such income that should have been reported on the FAFSA and if it was reported correctly.

V6 Household Resources (cont’d) As part of the review of information & documentation provided, if a school determines that the amounts provided do not appear to provide sufficient support for the family members included on the FAFSA, the applicant (& parent/spouse) must- o Provide additional signed documentation of resources used to support family (other than items required to be reported on the FAFSA or other verification worksheets) Examples: Low-Income Form, Income-to-Expenses Comparison Form, etc. Reasonable judgment should be used when evaluating submitted documentation. Do you have a an income guideline established for staff to follow? Reasonable will differ from school to school.

Additional Topics Amended Tax ReturnsAVG 82 Heroes Act ModificationsFederal Register Sept. 27,2012 AVG 77 Identity TheftAVG 82 Other Untaxed Income V6AVG 84 Professional JudgmentAVG 82 Reporting Results V4 & V5Electronic Announcements 11/13/13 & 11/6/14 AVG Separating IncomeAVG 83 Special Tax SituationsAVG 81 Updating InformationAVG Verification ExclusionsAVG Verification After DisastersAVG 77

References and Resources IFAP – Ifap.ed.gov Federal Register Notice – June 25, 2014 – Ifap.ed.gov Chapter 4 of Student Aid Handbook – Ifap.ed.gov IRS Publications Regarding Federal Income Tax – Irs.gov

Thank you and Keep On Rolling! Jo Holland