Reading Through the Lines - IASFAA · PDF fileTax Transcript Overview Continued • Identity Theft • Usually takes longer (Before PPY) • Victims should call 800-908-4490 to report

Reading Through the Lines: Completing Verification Using Federal Income Tax Transcripts

Presented By:

Merrie Frentress, Verification Coordinator, Drake University

and

Nadine Torsrud , Financial Aid Systems Analyst, Hawkeye Community College

Tax Transcript Overview Used in lieu of DRT

• Recently: DRT Unavailable!

• Personal Choice

• Married Filing Separate

• Marital status change/Separation

• Death of Parent/Spouse

• Amended Return

• Trouble with DRT

• Address

• “Doesn’t Work”

Tax Transcript Overview Continued

• Identity Theft

• Usually takes longer (Before PPY) • Victims should call 800-908-4490 to

report • IRS Form 14039-Identity Theft Affidavit • Tax Advocate

• 1-877-777-4778 to see if eligible • https://www.irs.gov/advocate/loc

al-taxpayer-advocate • Transcript Database View (TRDBV)

• Foreign Income

• Non-filer Verification

https://www.irs.gov/advocate/local-taxpayer-advocate







Ordering a Transcript

• Online—receive by mail or download/print • IRS.gov • Under “Tools

Ordering a Transcript Online

• SSN or TIN • Date of birth • Filing status • Mailing address of

latest return • Email access • Personal account

number for credit card, mortgage, home equity LOC, car loan

• Mobile phone in parent/student’s name


• First time users will need to

register. • There are a series of screens

detailing what is required to complete the process.






• Username • 8-64 Characters • Not be an email address,

SSN, or contain a space or special character

• Password Rules • Between 8-20 Characters • At least 1 numerical and

one special character -!@#$%^&*

• At least one upper case and one lower case letter

• Matching password must be re-entered

• Choose site phrase and image


Ordering a Transcript Other Ways

Ordering a Transcript Other Ways

• By Phone—Mailed (Automated) • 1-800-908-9946

• Option 1 for English,2 for Spanish

• Enter SSN (or TIN) • Verify address using only

digits • Select Transcript Type

(Option 2 for Return Transcript)

• Indicate Tax Year Desired • Option 3 to End Call

• Mail from Online • Need SSN, Date of Birth,

Mailing address

• Form 4506-T or 4506T-EZ—Mailed

• Faxed • Done when on the phone

with IRS—and they will confirm that transcript received.

2017–2018 FAFSA Information

Requiring Verification

2017–2018 FAFSA Q#

(Student and Parent)

2017–2018 ISIR Field#

(Student and Parent) 2015 IRS Tax Return Transcript Item 2015 IRS 1040 Line # 2015 IRS 1040A Line # 2015 IRS 1040EZ Line #

Adjusted Gross Income 36 and 85 43 and 108 Adjusted Gross Income Per Computer 37 21 4

Income Tax Paid 37 and 86 44 and 109

For IRS Form 1040 Transcripts:

—"Income Tax After Credits Per Computer" less "Excess

Advance Premium Tax Credit Repayment Amount"

For IRS Form 1040A Transcripts:

—"Tentative Tax Per Computer" less "Total Credits Per

Computer"

For IRS Form 1040EZ Transcripts:

—"Total Tax Liability TP Figures Per Computer" less "Health

Care: Individual Responsibility"

*For all transcripts, if taxes paid isnegative, enter '0"(zero)

56 minus 46 28 minus 36 10

Education Credits 44a and 93a 51 and 116 Education Credit Per Computer 50 33 N/A

IRA Deductions and Payments 45b and 94b 58 and 123

KEOGH/SEP Contribution Deduction + IRA Deduction Per

Computer 28 plus 32 17 N/A

Tax Exempt Interest Income 45d and 94d 60 and 125 Tax-Exempt Interest 8b 8b N/A

Untaxed Portions of IRA Distributions 45e and 94e 61 and 126 Total IRA Distributions – Taxable IRA Distributions 15a minus 15b 11a minus 11b N/A

Untaxed Portions of Pensions 45f and 94f 62 and 127

Total Pensions and Annuities – Taxable Pension/Annuity

Amount 16a minus 16b 12a minus 12b N/A

2017–2018 FAFSA Verification-IRS Tax Return Transcript Matrix

Notes

Tax Return Transcript Matrix

Tax Return Transcript 1040EZ

Tax Return Transcript 1040A

Total IRA Distributions – Taxable IRA Distributions = 0 Total Pensions & Annuities – Taxable Pensions & Annuities = 4947


KEOGH/SEP Contribution Deduction + IRA Deduction per Computer= 0



Tax Return Transcript 1040

Total IRA Distributions – Taxable IRA Distributions = 0 Total Pensions & Annuities – Taxable Pensions & Annuities = 4947


KEOGH/SEP Contribution Deduction + IRA Deduction per Computer= 0


General Comments Regarding Tax Transcripts

• ALWAYS use the PER COMPUTER amount for verification, even if it is different than what was reported by the student/parent

• IGNORE the RECOMPUTED or VERIFIED AMOUNT

Amended Tax Returns

• Tax Return Transcript will only show the ORIGINAL amounts reported to the IRS

• Must obtain a copy of the Tax Return

Transcript AND a SIGNED copy of IRS Form 1040X • Will show original tax information that was filed and

changes that were made

Questions?

Documents

Reading Through the Lines - IASFAA · PDF fileTax Transcript Overview Continued • Identity Theft • Usually takes longer (Before PPY) • Victims should call 800-908-4490 to report