FAFSA 2025-2026 using 2023 tax returns? When to report income changes?

Your friend is correct - the 2025-2026 FAFSA uses 2023 tax information (also called the 'prior-prior year'). This is standard policy now. The good news is that you can request a Professional Judgment review (sometimes called a Special Circumstances review) from your school's financial aid office to account for your family's change in income. You'll need to document the job loss and income reduction with things like termination letters, unemployment benefits statements, and current pay stubs. Each school handles these differently, but most have a specific form for reporting income changes.

yep its 2023 tax stuff for 2025-26... stupid system tbh

To add to what others have said - yes, 2025-2026 FAFSA uses 2023 tax info. The formal name for reporting changes is a "Professional Judgment" or "Special Circumstances Appeal." You'll need to: 1. Complete the FAFSA normally with your 2023 tax info 2. Contact EACH school's financial aid office separately (important - you must do this for each school) 3. Ask about their process for reporting income changes 4. Submit their required documentation (usually includes formal statements, tax documents, proof of job loss, current income verification) Don't wait to do this! Some schools prioritize early appeals and may have limited funds for adjustments. Also, don't skip filing the FAFSA thinking your situation won't qualify for aid - that's the #1 mistake students make when circumstances change.

my cousin went thru this last year. he said the whole procees was a nightmare cuz he kept calling the federal student aid number and couldnt get thru to a real person for WEEKS. just kept getting disconnected. total waste of time!

Wait I'm confused...I thought the FAFSA was just switching to using the SAI instead of EFC this year? Are they also changing which tax year they use???

I work in a financial aid office. The success rate for Professional Judgment reviews varies by school, but I can tell you we approve about 65% of the appeals we receive. The key is DOCUMENTATION. Don't just tell us your situation changed - prove it with official paperwork. The appeals that get denied are usually ones with inadequate documentation or where the income change isn't significant enough to impact the SAI calculation. Also, DO NOT call the Federal Student Aid hotline for this issue. They cannot process PJ reviews - only your individual schools can do that. FSA only handles general FAFSA questions and technical problems.

when I went thru this my school wanted: termination letter, unemployment benefit statements, last pay stub from old job, current pay stubs from new job, and copies of bills wasn't enough - they wanted a monthly budget showing income vs expenses. each school is different tho.

@OP - Yes, a termination letter is essential documentation. For bills, a budget summary is more useful than individual bills. Most schools want to see: 1. Official documentation of job loss (termination letter) 2. Last pay stub from previous employment 3. Unemployment benefit statements if applicable 4. Current pay stubs showing reduced income 5. A monthly budget showing income vs. expenses 6. Bank statements showing reduced assets (optional but helpful) Start gathering these now. And don't be discouraged by negative stories - most legitimate cases with good documentation do receive adjustments. It's designed to help families in exactly your situation.

Just wanted to add another perspective as someone who went through this process successfully last year. My family had a similar situation - my mom's hours were cut dramatically in 2024 but our 2023 taxes showed full income. Here's what worked for us: 1. I submitted my FAFSA normally with 2023 tax info in January 2. Immediately after submission, I reached out to ALL my schools' financial aid offices 3. I kept detailed records of who I spoke with and what documents they requested 4. I created a "master packet" with all the common documents (termination letters, pay stubs, budget) and customized it for each school's specific requirements The result? 4 out of 5 schools approved my appeal and my aid increased by an average of $4,800 per year. The key is being proactive and organized. Don't wait - start reaching out to schools now even before you submit your FAFSA. Many offices are happy to explain their process and give you a head start on gathering documents. Good luck! Your situation sounds very similar to mine and I'm confident you'll get the help you need if you stay on top of the process.

As someone who just went through this exact situation last semester, I wanted to share what worked for me. Yes, the 2025-2026 FAFSA uses your 2023 tax information, which can feel really frustrating when your family's financial situation has changed dramatically like yours has. Here's my advice: Start the Professional Judgment process NOW, even before you submit your FAFSA. I called each of my target schools in December and asked them to email me their special circumstances forms and documentation requirements. This gave me a huge head start on gathering everything I needed. For documentation, I found that schools really value official letters. I got a formal letter from my dad's HR department that included his termination date, final salary, and reason for separation. I also included a brief personal statement (1 page max) explaining our situation and how it impacts our ability to pay for college. One thing that really helped was creating a comparison chart showing our 2023 income vs. our projected 2024/2025 income. It made the impact crystal clear for the financial aid officers. Don't let the process intimidate you - most schools genuinely want to help students in situations like yours. The key is being thorough with your documentation and following up regularly (but politely) with each school's financial aid office.

I'm going through something very similar right now! My parents got divorced in 2024 and my mom's income dropped significantly, but our 2023 taxes show both parents' full incomes when they were still married. One thing I learned that might help you - some schools have early deadlines for Professional Judgment appeals, especially if you want to be considered for their limited special circumstance funds. At my top choice school, they said appeals submitted before February 1st get priority consideration, so definitely don't wait too long. Also, if your dad is receiving unemployment benefits, make sure to get those statements! My financial aid counselor said unemployment documentation is one of the strongest pieces of evidence for income reduction appeals because it's official government verification of the job loss and reduced income. The whole system using 2-year-old tax info does seem crazy, but like others mentioned, at least there's a way to appeal. Hang in there - it sounds like you have a really legitimate case for an adjustment!

I went through this exact situation two years ago when my mom lost her job mid-2022 but we had to use 2021 tax info for the 2023-24 FAFSA. Just wanted to add a few practical tips that saved me time: 1. Create a simple spreadsheet tracking each school's PJ requirements and deadlines - they're all slightly different 2. When requesting documents from employers/unemployment office, ask for multiple copies upfront. You'll need them for every school you apply to 3. Write a one-page family financial statement explaining the timeline of changes. Include specific dates and dollar amounts - this helped financial aid officers understand our situation quickly 4. Keep copies of EVERYTHING you submit and get confirmation receipts when possible The process worked for me - I got my aid increased at 3 out of 4 schools I applied to. The one that denied it was because their PJ funds had already been allocated (another reason to start early). One last thing - don't be afraid to call and ask questions. Financial aid officers deal with this all the time and most are genuinely helpful. They'd rather answer your questions upfront than deal with incomplete applications later. You've got this! Your situation is exactly what the Professional Judgment process was designed for.

I'm a current college sophomore who just went through a successful Professional Judgment appeal last year, and I wanted to share one more resource that really helped me. When I was gathering documentation for my family's income change (my dad's business income dropped 70% in 2023), I used the Federal Student Aid website's "Special Circumstances" worksheet to organize everything. It's under the "Complete the FAFSA" section and gives you a really clear checklist of what documentation different types of income changes require. One thing I wish someone had told me earlier - take photos/screenshots of every online form you submit and every email confirmation you receive. I had one school claim they never received my appeal documents, but because I had screenshots of the submission confirmation, they were able to locate it in their system. Also, if you're working with multiple schools, consider creating separate email folders for each one to stay organized. The whole process took about 6-8 weeks from submission to final decision at most schools, so don't panic if you don't hear back immediately. And remember, even if your SAI doesn't change dramatically, many schools have additional institutional aid they can offer through the Professional Judgment process. My SAI only dropped by about 2,000, but I ended up getting an additional $5,200 in grants because the school was able to use their discretionary funds. Keep advocating for yourself - the squeaky wheel really does get the grease with financial aid offices, and your situation absolutely warrants an appeal!

I'm a parent who went through this exact situation with my daughter last year. Our family income dropped significantly in 2024 due to a business closure, but we had to use our 2023 tax information which showed much higher earnings. Here's what I learned that might help you: 1. Start gathering documents NOW - don't wait until after you submit the FAFSA. Get termination letters, unemployment statements, and current pay stubs ready. 2. Contact each school's financial aid office directly by phone first, then follow up with email. Ask specifically for their "Professional Judgment" or "Special Circumstances" form and requirements list. 3. Write a clear, factual cover letter explaining your situation. Include specific dates (when job loss occurred, when new employment started) and dollar amounts (previous salary vs. current salary). 4. Be prepared to provide projected income for the entire 2025 year, not just current income. Schools want to see the full picture. 5. Follow up every 2-3 weeks politely. Don't be afraid to advocate for yourself. The good news is that legitimate cases like yours have a high success rate. My daughter's aid package improved by over $6,000 per year after our appeal was approved. The process took about 2 months total, but it was absolutely worth the effort. Your situation is exactly what this process was designed to address, so don't give up hope!