Income Taxes

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Income Taxes
Foreign Income
Asset Net Worth

It is best if you (and your spouse) file your income tax return(s) before filling out this application. However, if you have not filed your income tax return(s), you should calculate your adjusted gross income (AGI) using the AGI Worksheet. When your application is compared with the tax return(s) you (and your spouse) actually file, the financial information must agree. If there are differences, you will need to correct the information and send it back to the U.S. Department of Education. This could mean a delay in getting student financial aid.

Even if you (and your spouse) are not required to file a 1999 income tax return, you will need to calculate your earnings for the year. Use W-2 Forms and other records to answer the questions in this section.

If an answer is zero or a question does not apply to you, enter 0 (zero). Independent students do not need to enter their parents' income and asset information in Step Four. If you are dependent, however, your parents are required to report their income and asset information, separately, in Step Four.

For the 2000-2001 FAFSA, the base year for completing income tax questions is 1999. Income tax questions give 1999 Internal Revenue Service (IRS) tax form line references.

If you are married at the time you submit the FAFSA, even if you were not married in 1999, both your and your spouse's income and assets must be reported. If you are married and you and your spouse filed (or will file) separate tax returns for 1999, be sure to include both your and your spouse's exemptions and income for the income questions, even if you were not married in 1999.

If you are currently single, divorced, separated, or widowed, you should answer the questions for yourself only and ignore the references on the FAFSA to "spouse."

If you are currently divorced, separated, or widowed, but filed (or will file) a joint tax return for 1999, you should give only your portion of the exemptions, income, and taxes paid for the income and asset questions.

Courtesy of: "Completing the 2000-2001 FAFSA," from the U.S. Department of Education