You can file the FAFSA on January 1, 2011 through June 30, 2011, but if you are applying to a traditonal four year school for the fall 2011 semester you will want to complete the FAFSA on or soon after January 1st. Why? In some cases, federal aid, grants and scholarships are awarded on a first-come, first-served basis, so get the ball rolling early.
To file your FAFSA, there is information you will need to gather regarding income and taxes for the 2010 year, before you receive your income reports from the previous year (W2′s) and file your taxes. This may trip you and your parents up as you are not required to file your tax information for the previous year until April 15th. While having your federal tax return complete will save you a lot of time when filling out your FAFSA, you will want to file your FAFSA form earlier (starting Jan 1st) than you are able to complete your IRS federal tax return (after receiving income reports, by April 15th).
Thankfully, you are allowed to report estimated tax data on your FAFSA. As long as you correct the estimates once you finish your taxes, you are not required to complete your IRS federal tax return before filing your FAFSA. It is a common misnomer that it is required when it is simply encouraged. Note there is a question on the FAFSA about which IRS Tax Form you will fill out in the future, and that is where the 1040 Form comes up. You can fill out a 1040 form using estimated income amounts, either using your previous year’s tax return or your current pay stubs.
What is the 1040? The 1040 is the Federal Income Tax Return form. There are a few different versions of this form and it is important to determine which you will be filing. The FAFSA-on-the-web application will populate other parts of the form for you based on qualifications you would have in order to file the specific types of federal return. Use this guide below to guide you on which form you and your parents can us.
To qualify for the 1040EZ:
- Your total income is under $100,000
- Your interest income is under $1,500
- You have income only from wages, interest, unemployment compensation, and Alaska Permanent Fund dividends
- You and your spouse are under 65 years old
- Your filing status is single or married filing jointly.
- You do not have any adjustments to income
- You are claiming only the standard deduction
- You may claim the Earned Income Credit
- You are not claiming any other tax credits
If you meet all of these conditions, you are eligible to file the 1040EZ, and you will note this on your FAFSA. Most students are eligible to file the 1040EZ.
To qualify for the 1040A:
- Your total income is under $100,000
- Any age, any filing status
- You have income from wages, interest, dividends, capital gain distributions, IRA or pension distributions, unemployment compensation, or Social Security benefits
- You can claim the following adjustments to income: penalty for early withdrawal of savings, IRA contributions, student loan interest, and jury duty pay given to your employer
- You can claim the following tax credits: Child and dependent care credit, Credit for the elderly and disabled, Education credits, Retirement savings contributions credit, Child tax credit, and Earned income credit.
Completing one of the 1040 tax forms will give you a better idea of what adjustments can be made to your income, such as tuition and fees deductions and student loan interest. And you’ll be a step ahead on filing your federal taxes when you are able to.
Filing your taxes online? Most tax software will determine for you which form you are supposed to file, and then you may note that on your FAFSA.
For more FAFSA tips visit www.FAFSAonline.com