Today and the Horizon Verification

 Overview of  Changes in (I.E. the Learning Curve)  Transition to Customized Verification (VI-V5)  Reference Information Scope of the Presentation

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Elimination of the 30% Rule 30%

Elimination of the $400 Tolerance $400

Dependent Status Changes

SNAP (Food Stamp) Verification

Verification Before Professional Judgment

Acceptable Documentation FAFSA Data Retrieval

Acceptable Documentation IRS Tax Transcript

 Timeline Delays in DRT Availability  Delays for Balances Owed DRT and Transcript Requests

Originally a Tax Transcript and Tax Account Transcript OR A Record of Account Required Amended Returns New Guidance Enables Verification with Signed Original Tax Return (or unsigned tax transcript) and Signed Amended Return (1040X)

Amended Returns “…when an institution is aware that an amended tax return was filed, the institution will need to use information from both documents selected below to complete and satisfy the verification requirements– a signed copy of the original tax return that was filed with the IRS, an IRS Tax Return Transcript (which does not have to be signed), or the documentation specified under DOC-Q10/DOC- A10, and a signed copy of the original tax return that was filed with the IRS, an IRS Tax Return Transcript (which does not have to be signed), or the documentation specified under DOC-Q10/DOC- A10, and a signed copy of the IRS Form 1040X that was filed with the IRS.” a signed copy of the IRS Form 1040X that was filed with the IRS.” --Ed.gov Negotiated Rulemaking red/reg/hearulemaking/2009/veri fication.html

Builds on Data Elements The Award Year Adds Two New Items High School Completion Identity and Statement of Educational Purpose Introduces the V1-V5 Verification Groups

 High School Diploma  Copy of Final HS Transcript Showing Graduation Date  Alternative Documentation  GED, State Exam, Transcript of 2-year Program with Credit toward Bachelor’s Degree, OR… New Documentation: High School Completion

“For a person who is seeking enrollment in an educational program that leads to at least an associate degree or its equivalent and has not completed high school but has excelled academically in high school, documentation from the high school that the student excelled academically when in high school and documentation from the postsecondary institution that the student has met the formalized, written policies of the postsecondary institution for admitting such students” Students without a HS Diploma

Transcript or the equivalent, signed by the parent or guardian, that lists the secondary school courses completed by the applicant and documents the successful completion of a secondary school education; or Transcript or the equivalent, signed by the parent or guardian, that lists the secondary school courses completed by the applicant and documents the successful completion of a secondary school education; or A secondary school completion credential for home school (other than a high school diploma or its recognized equivalent) provided for under State law A secondary school completion credential for home school (other than a high school diploma or its recognized equivalent) provided for under State law Homeschooled Students

Appear in person and present to an institutionally authorized individual-- Appear in person and present to an institutionally authorized individual-- A valid government-issued photo identification (driver’s license, non- driver’s license, military identification, or passport); and A valid government-issued photo identification (driver’s license, non- driver’s license, military identification, or passport); and A signed statement of educational purpose A signed statement of educational purpose Statement of Identity/Purpose Purpose

Must maintain an annotated copy of the identification submitted by the applicant that includes— The date documentation was received; and The date documentation was received; and The name of the institutionally-authorized individual that obtained the documentation The name of the institutionally-authorized individual that obtained the documentation Additional Requirements

If unable to appear in person, a student must provide the institution— A copy of a valid government-issued photo identification (driver’s license, non-driver’s license, military identification, or passport); and A copy of a valid government-issued photo identification (driver’s license, non-driver’s license, military identification, or passport); and An original notarized statement of educational purpose signed by the applicant An original notarized statement of educational purpose signed by the applicant What if you can’t appear in person?

Other than documentation for the two new categories, documentation currently acceptable for the aid year remains the same for Acceptable Documentation

 V1: Standard  V2: SNAP Only  V3: Child Support Paid Only  V4: Custom (Child Support, SNAP, High School Completion, and Statement of Purpose/Identity)  V5: Aggregate (All Data Items) Verification Tracking Groups

 V1: Standard data elements  Documentation may include VWS, Tax Transcript or DRT (or signed amended return if applicable), etc. V1: Standard Verification

 V2: SNAP (Food Stamps) Verification of Benefit  Documentation (if reported on FAFSA) may include:  verification worksheet (or signed certification of receipt),  or institution may request documentation from agency issuing benefit V2: SNAP Benefits

 V3: Child Support Paid  Documentation (if reported on FAFSA) may include:  Verification worksheet (or signed certification of payment), indicating— Amount of child support paid Amount of child support paid Name of the person to whom it was paid, and Name of the person to whom it was paid, and Name of the children for whom it was paid Name of the children for whom it was paid V3: Child Support Paid

 V4: High School Completion and Statement of Identity/Purpose  May also include Child Support Paid and SNAP (if indicated on the FAFSA)  Documentation (if reported on FAFSA) may include:  Verification worksheet (or appropriate SNAP/Child support paid documentation)  Proof of high school completion or alternative documentation  Proof of identity and statement of educational purpose V4: Custom

 V5: Verification of all items required  Documentation (if reported on FAFSA) may include:  Verification worksheet (or appropriate SNAP/Child support paid documentation), household size, and # in college  Proof of high school completion or alternative documentation  Proof of identity and statement of educational purpose  Income and tax data V5: Aggregate

Verification Items

 E-CFR :  An institution's procedures must provide that it will furnish, in a timely manner, to each applicant whose FAFSA information is selected for verification a clear explanation of—  (1) The documentation needed to satisfy the verification requirements; and  (2) The applicant's responsibilities with respect to the verification of FAFSA information, including the deadlines for completing any actions required under this subpart and the consequences of failing to complete any required action. Update to Policies and Procedures

Reference Information

FAFSA-IRS Tax Return Transcript Matrix AFSA1213VerificationIRSTaxReturnMatrix.html AFSA1213VerificationIRSTaxReturnMatrix.html Application and Verification Guide s/1213AVG.pdf s/1213AVG.pdf GEN-12-07—Acceptable Documentation for Income and Taxes EN1207.pdf EN1207.pdf

Questions?