BEGINNER VERIFICATION

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BEGINNER VERIFICATION

• A Look at the Basics

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Important Tools

• The Application and Verification Guide
• 34 CFR 668 , Subpart E
• FAFSA
• www.ifap.ed.gov
• Verification Worksheets
• www.irs.gov
• IRS Publication 17

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Required Verification Policies Procedures

• General Policy In FA Office P P Manual
• May post and/or include in Consumer Guide
• Deadlines for students to submit documentation
• Consequences of failure to meet deadlines
• Method of notification of award changes
• Required correction procedures for students
• Standard procedures for referring overpayment
  cases to the Department

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Additional Requirements

• Must provide each selected applicant a written
  statement explaining
• Documents required for Verification
• Student Responsibilities (deadlines and
  consequences of missing them, corrections)
• Notification Methods (notice of change in award
  and timeframes for notification)

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Required Verification Items

• Adjusted Gross Income
• US Income Tax Paid
• Certain Untaxed Income and Benefits
• Household Size
• Household Members Enrolled in College

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AGI/Taxes Paid Verification

• SIGNED copy of paper US tax return
• SIGNED copy of e-filed US tax return
• Acceptable in format of the e-file provider
  (i.e., may not look like a standard form)
• IRS Tax Transcript
• Photocopies, faxes and digital images are
  acceptable (signature)
• SIGNED, hand-written duplicates of a filed return
  are acceptable

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Certain Untaxed Income

• Untaxed income reported on the tax return
• Tax-exempt interest
• Untaxed portions of IRA distribution
• Untaxed portions of pensions
• IRA deductions and payments to SEP
• Payments to tax-deferred pension/savings plans
  (found on W-2)

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continued

• Other untaxed incomes not found on return
• Child support received
• Housing/food/living allowances paid to members of
  the military, clergy and others
• Veterans NON-EDUCATIONAL benefits
• Other, such as workers compensation/disability

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DO NOT VERIFY / INCLUDE

• Earned Income Credit
• Additional Child Tax Credit
• Welfare
• Untaxed social security benefits
• SSI
• WIA Education benefits
• Combat pay
• Foreign Income Exclusion
• Credit for Federal Tax on Special Fuels

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continued

• In-Kind Income
• In-kind support is other than money, for
  example, friends or relatives giving the student
  food or allowing him to live with them
  rent-free.
• Direct payments of cash are NOT in-kind support
  and must be reported.
• In addition, if someone pays a bill in the
  students name (the STUDENTS obligation) on
  behalf of the student, the amount counts as cash
  support and must be reported.

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Verification of Household Size and Number in
College

• Can be collected on the federal Verification
  Worksheet
• Can only include household members that receive
  more than ½ of their support from the
  parents/student, as applicable
• For a Dependent student, can not include a parent
  in the number in postsecondary school

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Verification Worksheets

• Correct Award Year
• Correct Dependency Status
• Scrutinize Household Members
• Full name of College should be provided
• Item C, 2 and 3 MUST be completed
• Item D, 2 and 3 MUST be completed
• Student and Parent signature is required
• Spouse signature is optional

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Correct Inaccurate Data

• May instruct student/parent to correct errors
  found in Verification on FOTW
• Be sure to re-check new ISIR and confirm correct
  changes were made
• Student needs PIN to make changes
• Parent needs to sign with PIN if parent
  information changes
• NEVER collect student/parent PIN

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continued

• School may correct data using FAA Access to CPS
  Online (or schools proprietary software)
• Schools must have SIGNED documentation to
  authorize changes it makes
• The signed tax return and/or Verification
  Worksheet can serve as your authorization to make
  the change

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Presenter

• Colleen T. Russo
• Corporate Director of Regulatory Affairs
• DPT Business School
• 11000 Roosevelt Blvd., Suite 200
• Philadelphia, PA 19116
• 215-673-2275
• crusso_at_dptschool.net