Can I file FAFSA® without a tax return?

This is a common question for students that might be dealing with tax extensions or low-income and have not filed a tax return. While accurate tax information is required on the FAFSA® form, the Office of Federal Student Aid, also known as the FSA, does allow students to file their FAFSA® if the student or parent has not yet filed their income taxes for the requested year.

The FSA permits the use of income placeholder information from a previous year until the appropriate income taxes have been filed, after which the student is required to update his or her Free Application for Federal Student Aid , (FAFSA®).

New Rules Change Tax Reporting Year On FAFSA®

Keep in mind that starting with the 2017-18 school year, federal tax returns accompanying the FAFSA® are from the tax year two years prior to the school year , rather than one year. This helps students file the financial aid form earlier, especially in states where the FAFSA® filing deadline is prior to the income tax filing deadline of April 15th.

The change means that income must be reported from two years earlier even if a significant change in income occurred in the following year. Students with issues like this can opt to contact the schools they are applying to in order to provide current financial information. Financial information is how the school will determine the amount of federal student aid to award you.

Why No Tax Return?

Did you File FAFSA® Yet

A number of possibilities exist as to why someone may not have filed a tax return . Extensions may have been granted to deal with high tax bills or complicated finances. The person may not have been legally required to file due to low or no income. A filer may have neglected to send in a tax return to the IRS even though he or she was required to do so.

No matter what your income tax situation is with the IRS, the FAFSA® will eventually require financial information from both the student and the parent to determine the amount of student aid to award. Keep reading to learn more about how to complete your FAFSA® application if you don't have your federal tax forms ready.

How to Address Lack of Tax Returns On FAFSA®

If extensions have been authorized for an income tax return by the IRS, the student or parent does not have to include a tax return, but the FAFSA® must be updated when the extensions end.

Students and their parents (for dependent students) are given the option of using the previous year's tax returns as a placeholder provided there has been no significant change in the individual's income. The FSA also provides an income estimator on the application for the same purpose.

If a student or parent is not required to file, a tax return does not have to be included with the FAFSA®. However, if that person has received a W-2, 1099, or final pay stub for the year in question, this information must be provided on the FAFSA®. Verification of non-filing may be required.

If a filer has unlawfully failed to file a federal tax return, the student is ineligible for financial aid, but a financial professional can help. This can be a major obstacle for students who need federal student aid to complete their education. Filing the late return and setting up a payment plan can help the student qualify for financial aid.

Once you've filed your return and can prove you're making payments, you can submit your documents to the FAFSA® and alert your school of the new financial information.

Keep Financial Information on File for FAFSA®

If the student or parent needs to provide financial information for the FAFSA®, things will move along smoothly if you continue to keep detailed records of your income tax filing status. simple if you've kept detailed income and tax records. Tallying up relevant numbers will help you fill out the FAFSA® with accurate financial information.