Presentation on theme: "Tanya McGee Katie Starling Kansas State University October 3, 2013"— Presentation transcript:
1 Tanya McGee Katie Starling Kansas State University October 3, 2013 VerificationTanya McGeeKatie StarlingKansas State UniversityOctober 3, 2013
2 Agenda 2013-2014: Where we are 2014-2015: Where we are going Impact of GEN-13-12Discussion/Question & Answer
3 VerificationData elements to verify remained largely the same asHigh school completion status and Identity/ Statement of Educational Purpose were addedIntroduction of verification groupsV1, V2, V3, V4, V5Student should remain in the same verification group
4 2013-2014 Data elements to verify Household sizeNumber in collegeIncome information for tax filersAGITaxes PaidEducation CreditsSpecific untaxed income: IRA distributions, pensions, IRA deductions, and tax exempt interestEducation credits -Do you ask about rollovers? Tax returns would indicate if an IRA or pension were rolled-over. If you ask, what documentation do you collect?Although it is not required to verify Income Earned from Work, on what occasion would you ask for W2s?
5 2013-2014 Data elements to verify (con’t) Income information for non-tax filersIncome earned from workSNAP benefits (ie. Food Stamps)Only if ISIR indicates this was trueChild Support PaidNon-tax filers – we are suppose to collect W2s, but does anyone collect 1099-MISC also?Do you ask all students about child support paid or SNAP? Do you tailor your verification?What about your V3 group…do you get information about child support paid only to have HH size questions raised, and then need to collect that documentation to clear up the conflicting information?
6 2013-2014 Data elements to verify (con’t) High School Completion StatusRecognized equivalents of high school diplomaIdentity/Statement of Educational PurposeMust use exact wording provided by ED for the Statement of Educational PurposeRecognized equivalents of HS Diploma: GED, state certificate received by a student after the student has passed a state-authorized exam that the state recognizes as the equivalent of a HS diploma, successfully completing at least a 2-year program that is acceptable for full credit toward a bachelor’s degree, excelled academically in high school (Doogie Howser), homeschool transcriptIdentity/SEP: Appear in person with government issued photo ID. Must maintain annotated copy of ID submitted by student that includes date received and the name of the institutionally-authorized individual that accepted the documentation. If they cannot appear in person, a copy of the government issued photo ID presented to the notary who witnessed the student’s signature on the SEP.
7 K-State’s ISIRs for AY14 Received (duplicated) Loaded (unduplicated) Total ISIRs45,33519,280Total Selected18,3295,500V118,1035,448V22410V311233V411V5758Loaded ISIRs: Dependent, 1650 Independent, 7 Rejected X = 5500 total selectedV1s – 5 are rejected; V5 – 2 are rejected due to changing the student from Independent to Dependent5500/19280 = 28.53% selected for verificationAs of Monday, September 30, 2013
8 So…how’s it going? Red ribbon year? Maybe blue, green, white? 1st is blue; 2nd is red; 3rd is yellow; 4th is white; 5th is pink; 6th is green.Take pulse of audience – what has been problematic, what is going well, challenges, etc.Amended tax returns? Victims of Identity Theft?Parents who filed jointly but now have different marital status? Any common law marriage?What about people who file extensions?Do you have very many in V2 or V3?
9 2014-2015 Verification Federal Register published June 13, 2013 Dear Colleague Letter, GEN-13-16, published June 13, 2013
10 2014-2015 Verification – What’s new Verification group changesSay goodbye to V2 – SNAPSay hello to V6 – Household ResourcesApplicants will no longer be assigned to V2, but we will still be required to verify SNAP in the other verification tracking groups (V1, V4, V5, V6)SNAP – 2012 and/or 2013 receipt of benefit
12 2014-2015 Verification – What’s new (con’t) Verification items remain the same as AY14, but with one additionOther Untaxed IncomeIntroduction of the new verification tracking group – V6, Household ResourcesQ45 for the student and Q94 for the parent(s)BTW – not necessarily related to verification, but it will help with verification. The FAFSA will now ask the student & parent their Tax Return Filing Status. Options: Single, Head of Household, Married, filed joint return, Married, filed separate return, Qualifying widow(er), Don’t know
13 2014-2015 Verification – Other Untaxed Income Payments to tax-deferred pension and savings plansChild support receivedHousing, food and other living allowances paid to members of the military, clergy and othersVeterans noneducation benefitsOther untaxed income (workers’ compensation, untaxed portion of health savings accounts, etc.)Money received or paid on the student’s behalf
14 2014-2015 Verification – Other Untaxed Income Acceptable documentation includes:Signed statement by the student and parent, if applicable, that lists the untaxed income amountsCopies of the 2013 W-2s from all sources of income
15 2014-2015 Verification – Other Untaxed Income If the FAA determines the income verified does not appear to provide sufficient financial support, the student or parent must explain how the family was financially supported during calendar year 2013.Income sources: AGI, income earned from work, all untaxed income, and other untaxed income not included on the FAFSA.
16 2014-2015 Verification – Other Untaxed Income Hence, the name for the new tracking group - Household ResourcesHey! You’re living on nothing! Prove it!Sources of income can include the “usual” itemsBut could also include untaxed income not listed on the FAFSAWelfare benefits Additional child tax creditEarned income credit Untaxed social security benefitsSupplemental security income (SSI)
17 2014-2015 Verification – Other Untaxed Income Household ResourcesED will not be specifying an income thresholdLeaving that to the institution to defineHow will you determine your “magic” number?Use poverty guidelines?What seems appropriate/necessary for a certain family’s size and geographic location?Discussion
18 Modifications to Acceptable Documentation Nontax filers – if an institution questions the claim of not filing, the institution may/must require the student to submit a “Verification of Nonfiling” from the IRS.The IRS will not be issuing until after June 15, 2014.“may require” is the text found in the Federal Register; “must require” is the text found in GEN You are held accountable to what is in law (ie. Federal Register).Important to know the income threshold when a person is required to file. Income threshold is dependent on whether the person is claimed as an exemption by someone else or not.
19 Modifications to Acceptable Documentation High School Completion StatusPreviously collected HS Completion documentation may be used as long as it meets the criteria outlined in the Federal Register.High School Completion Abroad – may obtain a copy of a “secondary school leaving certificate” through the appropriate government agencyHomeschool – secondary school completion credential vs. transcript signed by student’s parentsEg. Ministry of Education
20 Modifications to Acceptable Documentation Identity/Statement of Educational PurposeSpecific text for provided in the Federal RegisterDocumentation may be converted into an electronic record (ie. your imaging system)Household SizeIncludes parents who are married or unmarried and living together, irrespective of genderGEN-13-12
21 Impact of GEN-13-12Beginning with , dependent students will be required to provide income information from the student’s legal parents (biological or adoptive) regardless of marital status or gender, if those parents live together.In the past, income has been excluded when the parents were unmarried, even if the parents were living together.In the past, we may have tried to determine if the parents were considered common law marriages.
22 Impact of GEN-13-12Philosophy – the family should help pay the educational expenses of their child.Help to ensure limited taxpayer resources are directed to students with the most need, regardless of the parents’ marital status or gender, when those parents are living together.
23 Impact of GEN-13-12New response to FAFSA question, “As of today, what is the marital status of your legal parents?”, will include “Unmarried and both parents living together.”FAFSA on the Web will no longer have mother/father reference, but will reference Parent1/Parent2.
24 Additional Requirements Required to enter Identity Verification Results into FAA Access (V4 and V5)Manually enter information one student at a time.FAA Access will accept a flat file after April 2014.Must enter results even for non-respondents.
25 Discussion Question & Answer Possible TopicsImpact to your verification formsImpact to your student systemsImpact to your websiteMore forms to create!Update your website to explain GEN
26 Resources Federal Register, published June 13, 2013 Dear Colleague Letter (GEN-13-16), published 6/13/13
27 Resources2013 NASFAA Conference, Department of Education Verification session handout/audioNASFAA’s News July 30, 2013 – FAA Access Reporting for Verification of Identity and HS Diploma Required in
28 Contact InformationTanya McGeeAssociate DirectorOffice of Student Financial AssistanceKansas State UniversityKatie StarlingAssistance Director