Verification 2017-2018 ABC 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). 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

Discrepant Tax data The IFAP handbook states the following regarding Discrepant tax data: We have already stated that financial aid administrators do not need to be tax experts, yet there are some issues that even a layperson with basic tax law information can evaluate. Because conflicting data often involve such information, FAAs must have a fundamental understanding of relevant tax issues that can considerably affect the need analysis. You are obligated to know: whether a person was required to file a tax return, what the correct filing status for a person should be, that an individual cannot be claimed as an exemption by more than one person.

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 no longer required for 1718. DCL GEN 17-04

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 cont. 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

Auto zero EFC What needs to be verified if an Auto Zero EFC student is selected for verification? *Resources: Program Integrity Questions and Answers under the Verification section question V1-Q9. Or NASFAA’s (Training Libarary) Verification and Professional Judgement in a PPY World from March 22, 2017. Dependent Students: Independent Students: Parents’ AGI if they were tax filers Applicant’s and spouse’s AGI if they were tax filers Parents’ income earned from work if they were nontax filers Applicant’s and spouse’s income earned from work if they were nontax filers Applicant’s High School completion and SEP if placed in V5 group. The number of household members to determine if the independent applicant has one or more dependents other than a spouse

SAR Comment Code 399 The 2016-2017 FAFSA and the 2017-2018 FAFSA should be completed using the same 2015 income and tax information.    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 Adjusted Gross Income (AGI) U.S. Income Tax Paid Education Credits IRA Deductions and Payments Tax Exempt Interest Income Untaxed Portions of IRA Distributions Untaxed Portions of Pensions

Practice Exercise TAX TIME!

Reminders Amended Returns Signed copy of 1040X and Signed copy of original tax return or IRS transcript (with all data elements) $25 Tolerance for dollar and non-dollar amounts DCL GEN 17-04: Institutions may consider a signed paper copy of the 2015 IRS tax return. 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.

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