1. Verification
ABC Workshop 2017

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

3. 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 may be used for verification if that documentation is acceptable according to the Federal Register.
You must obtain new documentation each award year for the number in household, number in college and identity/statement of educational purpose.

4. 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

5. 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

6. 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.

7. 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

8. 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

9. 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)

10. 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

11. 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

12. SAR Comment Code 399
The FAFSA and the FAFSA should be completed using the same 2015 income and tax information.   
Edit will pop up to FAFSA filer - Warning

13. 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
Change in Dependency Status
Change in Marital Status
ISIR has Professional Judgment Flag set to ‘1’

14. 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

15. Practice Exercise
TAX TIME!

16. 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

17. Resources Federal Student Aid Handbook
Application and Verification Guide
NASFAA Ask Regs Knowledgebase
Institutional Policies and Procedures
IRS Publication 17:
*Make sure you are reviewing the corresponding Publication year(s) for the tax year in question.

18. Questions?
Dennise Mendez Financial Aid Advisor II Texas A&M University