Verification 2017-2018 New Aid Officer’s Workshop 2017

Agenda 2017-2018 Verification Updates 2017-2018 Verification Groups Verification items to be verified

2017-2018 Verification Updates Applicants will no longer be assigned to a V6 verification group. In addition, snap (supplemental nutrition assistance program) and child support paid will no longer be included in verification tracking groups (V1, V4, or V5). Nontax filers and tax filers who received an extension (but still have not filed their 2015 income tax return) will be required to provide a verification of non-filing letter from the IRS. Documentation used to verify any tax information for 2016-2017 may be used for 2017-2018 verification if that documentation is acceptable according to the 2017-2018 Federal Register. You must obtain new documentation each award year for the number in household, number in college and identity/statement of educational purpose.

2017-2018 Verification Tracking Flags Verification Tracking Group Verification Description V1 Standard Verification Record selected because conditions based on statistical analysis error-prone risk model were met V4 Custom Verification Group Record selected for HS Completion Status, Identity criteria V5 Aggregate Verification Group Record selected for Identity criteria, “Standard Verification” criteria

Information to be Verified: V1: Standard Verification Group V4: Custom Verification Group V5: Aggregate Verification Group High School Completion Status Identity/Statement of Educational Purpose Tax Filers: Adjusted Gross Income U.S. Income Tax paid untaxed portions of IRA distributions untaxed portions of pensions IRA deductions and payments tax-exempt Interest Income Education credits Nontax filers: Income Earned from work Tax Filers and Nontax filers: household size/# in household number in college

Nontax filers Signed statement certifying- That the individual has not filed and is not required to file a 2015 income tax return The sources of 2015 income earned from work and the amount of income from each source. W-2 forms for each source of 2015 employment income received or an equivalent document Confirmation of non-filing from the IRS or other relevant taxing authority dated on or after October 01, 2016.

High School Completion Status High School Diploma Copy of the applicant’s high school diploma A copy of the applicant’s final HS transcript showing date HS diploma was awarded A copy of the “secondary school leaving certificate” for students who completed secondary education in a foreign country an are unable to obtain a copy of their high school diploma or transcript. Homeschooled 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

High School Completion Status Recognized Equivalent of a high school diploma: General Educational Development (GED) Certificate or GED transcript State certificate or transcript received by a student after the student has passed a State-authorized examination that the state recognizes as the equivalent of a high school diploma An academic transcript that indicates the student successfully completed at least a two-year program that is acceptable for full credit toward a bachelor’s degree at any participating institution For a person seeking enrollment in an educational program that leads to at least an associate degree or its equivalent and who excelled academically in high school but did not finish, documentation from the high school that the student excelled academically and documentation from the postsecondary institution that the student has met its written policies for admitting such students. DD Form 214 (When documentation of high school completion is unavailable)

Identity/Statement of Educational Purpose Appear in person and present to an institutionally authorized individual: A valid government-issued photo identification (driver’s license, non-driver’s license, or passport); and A signed statement of educational purpose Must maintain, an annotated copy of the identification submitted by the applicant that includes: The date documentation was received; and The name of the institutionally-authorized individual that obtained the documentation If unable to appear in person, must provide the institution: A copy of a valid government-issued photo identification (driver’s license, non-driver’s license, or passport); and An original notarized statement of educational purpose signed by the applicant

SAR Comment Code 399 The 2016-2017 FAFSA and the 2017-2018 FAFSA should be completed using the same 2015 income and tax information.  Encourage use of DRT   Edit will pop up to FAFSA filer - Warning

SAR Comment Code 399 GEN-16-14: Institutions must resolve the conflicting information for both years before any further financial aid can be disbursed. Files will not be flagged if: Not Pell Eligible for 2017-2018 Change in Dependency Status Change in Marital Status ISIR has Professional Judgment Flag set to ‘1’

2015 Tax Matrix Earnings from Work Wages, Salaries, Tips Business Income/Loss Farm Income/Loss Untaxed Income Adjusted Gross Income (AGI) Additional Financial Information U.S. Income Tax Paid

Tax Time!

Reminders Amended Returns $25 Tolerance for non-dollar amounts Signed copy of 1040X and Signed copy of original tax return or IRS transcript (with all data elements) $25 Tolerance for non-dollar amounts Cannot accept IRS Verification of Non-filing letter dated before October 01, 2016. IRS Verification of Non-filing Letter does not indicate that an individual was NOT required to file, it only indicates that the IRS did not receive an income tax return for the individual listed on IRS Verification of Non-filing Letter. Must still resolve conflicting information

Resources Federal Student Aid Handbook Application and Verification Guide https://ifap.ed.gov/fsahandbook/1718FSAHandbookAVG.html NASFAA Ask Regs Knowledgebase http://askregs.nasfaa.org/ics/support/KBSplash.asp Institutional Policies and Procedures IRS Publication 17: https://www.irs.gov/pub/irs-prior/p17--2015.pdf *Make sure you are reviewing the corresponding Publication year(s) for the tax year in question.

Financial Aid Advisor II Dennise Mendez Financial Aid Advisor II Texas A&M University dmendez@tamu.edu