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 and prior years, students selected for verification could submit copies of applicable 1040s and W-2s.  For regulatory changes made were related to program integrity issues as published in the Oct 29, 2010 Federal Register (75 FR 66832) and in the July 13, 2011 Federal Register (76 FR 41231). Acceptable verification documents changed to include Tax Transcripts. 2

 There are a few options for students/parents to request IRS Tax Transcripts. Online at: By Phone: By Request Form: 4506-T or 4506T-EZ 3

 Online requests: This is the preferred method. However, online requests can’t be processed if the transcript needs to be mailed to another address other than the one on file at IRS. Student/Parent will need to use the 4506-T or 4506T-EZ.  4506-T: Other information that can be requested with the 4506-T form include Verification of Non-filing and Forms W-2, Form 1099 series, Form 1098 series, Form 5498 series. VS. 4

 Which one do we need? ◦ Tax Return Transcript ◦ Tax Account Transcript ◦ Record of Account 5

 Includes most of the line items of a filed tax return.  Does not reflect changes made to the account after the return is processed.  Available only for following returns. Form 1040 series, forms 1065, 1120, 1120A, 1120H, 1120L and 1120S.  Most requests processed within 10 days of the request date. 6

 These contain information about the financial status of the account, such as payments, penalties and adjustments made after taxes are filed.  Has limited information and is available for most filers.  Most requests are processed within 30 calendar days from the request date. 7

 Provides the most detailed information since it is a combination of the Return Transcript and the Account Transcript.  Available for current year and 3 prior tax years.  Most requests will be processed within 30 calendar days from request date. 8

 The Department of Education issued the FAFSA Verification-IRS Tax Return Transcript Matrix on February 24 and a revision on March 16,  The matrix cross references line items from the FAFSA, ISIR, Tax Return Transcript and 1040 forms.  First identify which 1040 form (ex: 1040, 1040A, 1040EZ) used by the student/parent filed. Find the “Form Number” line item on the Tax Return Transcript. Review “Filing status” and “Exemptions”. 9

 Look at 2011Tax Return Transcript that is the result of a filed If there is a dollar value on any of the following lines, they are not eligible to file a 1040A or 1040EZ. 10

 REFUNDS OF STATE/LOCAL TAXES  ALIMONY RECEIVED  BUSINESS INCOME OR LOSS: SCH C PER COMPUTER  CAPITAL GAINS OR LOSS: SCH D PER COMPUTER  OTHER GAINS OR LOSSES: (Form 4797)  RENT/ROYALTY/PARTNERSHIP/ESTATE (Schedule E) PER COMPUTER  RENT/ROTALTY INCOME/LOSS PER COMPUTER:  ESTATE/TRUST INCOME/LOSS PER COMPUTER  PARTNERSHIP/S-CORP INOCME/LOSS PER COMPUTER  FARM INCOME OR LOSS (Schedule F) PER COMPUTER  OTHER INCOME 11

 RESERVIST AND OTHER BUSINESS EXPENSE  HEALTH SAVINGS ACCT DEDUCTION PER COMPUTER  MOVING EXPENSES: F3903  SELF EMPLOYMENT TAX DEDUCTION PER COMPUTER  KEOGH/SEP CONTRIBUTION DEDUCTION  SELF-EMP HEALTH INS DEDUCTION  EARLY WITHDRAWAL OF SAVINGS PENALTY  ALIMONY PAID  DOMESTIC PRODUCTION ACTIVITIES DEDUCTION  ADDITIONAL STANDARD DEDUCTION PER COMPUTER  STANDARD DEDUCTION PER COMPUTER  FOREIGN TAX CREDIT 12

 FOREIGN TAX CREDIT PER COMPUTER  RESIDENTIAL ENERGY CREDIT PER COMPUTER  F3800, F8801 AND OTHER CREDIT AMOUNT  SE TAX  SE TAX PER COMPUTER  SOCIAL SECURITY AND MEDICARE TAX ON UNREPORTED TIPS PER COMPUTER  TAX ON QUALIFIED PLANS F5329 PER COMPUTER  HOUSEHOLD EMPLOYMENT TAXES PER COMPUTER  RECAPTURE TAXES 13

 EXCESS SOCIAL SECURITY & RRTA TAX WITHHELD  FIRST TIME HOME BUYER CREDIT PER COMPUTER  FIRST TIME HOME BUYER CREDIT VERIFIED  AMOUNT PAID WITH FORM 4868 (Filing Extension)  FORM 4136 CREDIT FOR FEDERAL TAX ON FUELS  FORM 4136 CREDIT FOR FEDERAL TAX ON FUELS PER COMPUTER  HEALTH COVERAGE TX CR: F8885  FORM 2439, 8801, and OTHER CREDIT TOTAL AMT ‘Per Computer’ is the value calculated by the IRS and must be used for verification even if it is different than what was reported by the tax filer to the IRS. 14

 On the FAFSA, questions 35 and 83  On the ISIR, fields 42 and 106  On the 2011 Tax Return Transcript “Adjusted Gross Income Per Computer”  On the 2011 IRS 1040, line 37  On the 2011 IRS 1040A, line 21  On the 2011 IRS 1040EZ, line 4 15

 On the FAFSA, questions 36 and 84  On the ISIR, fields 43 and 107  On the 2011 IRS Tax Return Transcript For 1040 transcripts “Income Tax After Credits Per Computer” For 1040A transcripts “Total Tax Liability TP Figures Per Computer” For 1040EZ transcripts “Total Tax Liability TP Figures Per Computer” 16

 On the 2011 IRS 1040, line 55  On the 2011 IRS 1040A, line 35  On the 2011 IRS 1040EZ, line 10 17

 On the FAFSA, questions 43a and 91a  On the ISIR, fields 50 and 114  On the 2011 IRS Tax Return Transcript “Education Credit Per Computer”  On the 2011 IRS 1040, line 49  On the 2011 IRS 1040A, line 31  On the 2011 IRS 1040EZ, NA 18

 On the FAFSA, questions 44b and 92b  On the ISIR, fields 57 and 121  On the 2011 Tax Return Transcript “KEOGH/SEP Contribution Deduction + IRA Deduction Per Computer”  On the , lines  On the A, line 17  On the EZ, NA 19

 On the FAFSA, questions 44d and 92d  On the ISIR, questions 59 and 123  On the 2011 Tax Return Transcript “Tax-Exempt Interest”  On the , line 8b  On the A, line 8b  On the EZ, NA 20

 On the FAFSA, questions 44e and 92e  On the ISIR, fields 60 and 124  On the 2011 Tax Return Transcript “Total IRA Distributions minus Taxable IRA Distributions”  On the , lines 15a minus 15b  On the A, lines 11a minus 11b  On the EZ, NA 21

 On the FAFSA, questions 44f and 92f  On the ISIR, lines 61 and 125  On the 2011 Tax Return Transcript “Total Pensions and Annuities minus Taxable IRA Distributions”  On the , lines 16a minus 16b  On the A, lines 12a minus 12b  On the EZ, NA 22

 When students and parents ask why we need their IRS Tax Transcript for  Tax Transcripts are  Great reason to visit irs.gov  No calories and high in fiber  ????? 23

 Options to request Tax Transcripts (online, phone, 4506-T or 4506T-EZ.  There are different types of Tax Transcripts.  Review Filing Status, Form Number, Exemptions on Tax Return Transcript.  Use the ‘Matrix’ offered by Department of Education to verify amounts reported on FAFSA. 24

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Resources: Ifap.ed.gov Irs.gov 2012–2013 FAFSA Verification-IRS Tax Return Transcript Matrix USA Funds Great Lakes Contact: Regina S. Carver