what tax return for fafsa 2025-26

Vender Womder

2 min read

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23-11-2024

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What Tax Return to Use for the 2025-2026 FAFSA?

The Free Application for Federal Student Aid (FAFSA) uses your tax information to determine your eligibility for financial aid. Knowing which tax return to use is crucial for accurate financial aid calculations. For the 2025-2026 academic year, you'll need to use your 2023 tax return.

Understanding the FAFSA and Tax Year Connection:

The FAFSA application opens each October for the following academic year. The information you provide on the FAFSA reflects your family's financial situation during the tax year prior to the academic year for which you're applying. This means the FAFSA for the 2025-2026 academic year (starting in Fall 2025) will use your 2023 federal income tax return. This is because the FAFSA uses your family's income and tax information from the previous year to assess your financial need for the upcoming academic year.

Which Tax Documents Will You Need?

To complete the FAFSA accurately, you'll need the following information from your 2023 tax return:

• Your IRS Tax Return Transcript (or 1040 form): This is the most important document. You can obtain this online through the IRS website. It's preferable to the actual tax form as it's official and complete.
• Your W-2s (Wage and Tax Statements): If you worked, you'll need these to verify your income information.
• Other relevant tax documents: This might include 1099 forms (for independent contractors) or other documents related to your income and taxes.

What if you haven't filed your 2023 taxes yet?

If you haven't filed your 2023 taxes by the time the FAFSA opens in October 2024, you can estimate your income and tax information. However, it's crucial to update your FAFSA with the correct information as soon as your 2023 taxes are finalized. Inaccurate information could lead to errors in your financial aid package. You may even need to correct your FAFSA, which can delay the disbursement of your funds.

Other Important Considerations:

• Dependent vs. Independent Students: Your status as a dependent or independent student will affect which tax information is required on your FAFSA. Independent students usually need to provide their own tax information, while dependent students' parents' tax information is also required.
• Tax Adjustments: Be aware of any tax adjustments or deductions that could affect your reported income on the FAFSA.
• FAFSA Website: Always refer to the official FAFSA website (studentaid.gov) for the most up-to-date information and instructions. Their guidelines may be updated, so checking before filling out your form is vital.

In summary: For the 2025-2026 FAFSA, use your 2023 federal income tax return. Gather all necessary tax documents and complete the FAFSA accurately to avoid delays and ensure you receive the financial aid you're entitled to. Double-check all information before submitting to prevent any potential issues. Remember to regularly check the official FAFSA website for the most current and accurate information.