Hey everyone, my parents just finished their taxes and I have their 1040 form. How do I use this info to fill out my FAFSA? I'm a bit confused about which numbers go where. Thanks in advance!
Hey there! I completely understand how filling out the FAFSA might seem a bit confusing at first, but I'm here to help. To use the information from your parents' 1040 form, you'll need to locate specific lines on the form and enter them on the corresponding fields of the FAFSA. Here are some key pieces of information from the 1040 form that you'll need:
1. Adjusted Gross Income (AGI): You'll find the AGI on line 11 of the 1040 form. On the FAFSA, you'll input this number in the "Parent Financial Information" section under "Parents' Adjusted Gross Income."
2. U.S. Income Tax Paid: To find this amount, refer to line 24 of the 1040 form. You'll enter this number on the FAFSA under "Parents' Income Tax."
3. Untaxed Income: Untaxed income includes items like contributions to retirement accounts, child support received, and interest/dividends exempt from tax. You'll need to check lines 4a, 4b, 4c, 4d, and line 12 on the 1040 form for these amounts. When filling out the FAFSA, you'll enter these numbers in the appropriate fields under "Parent Financial Information" for untaxed income (for example, IRA deductions, total child support received, etc.).
4. Parent Asset Information: Although not directly related to the 1040 form, the FAFSA will also ask for information regarding your parents' assets. You will need to report the value of cash, savings, and checking accounts, the net worth of real estate (excluding the family’s primary residence), and the net worth of investments such as stocks and bonds.
Keep in mind that the FAFSA also requires the student's financial information, so you'll need to gather and report similar information from your own tax documents if you filed your taxes. If you're eligible, I highly recommend using the IRS Data Retrieval Tool (IRS DRT) when completing your FAFSA. This tool will directly import your parents' tax information into the FAFSA, making it significantly easier to complete accurately.
Best of luck as you work on your FAFSA! Do not hesitate to reach out if you have any further questions.
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