FAFSA asset questions - 2022 tax year vs 'current' cash/investments confusion?

For asset questions (cash/savings/investments), you need to report the CURRENT amounts - meaning what you have right now, not what you had in 2022. The income information is based on 2022 tax returns, but asset information is based on current values at the time you complete the FAFSA. It's confusing because they're asking for different time periods in the same application!

ya i was confused bout this 2. filled it out last week and just guessed lol. hope i didnt mess it up

The asset questions on the FAFSA always refer to current values as of the date you're completing the application. This is intentional in the formula design - they want your 2022 income (from a completed tax year) but your current assets (which could be used for educational expenses). If your financial situation has changed significantly since 2022, you can submit a special circumstances form to your school's financial aid office after you receive your SAI. This won't change the FAFSA calculation initially, but individual schools can adjust your aid based on current circumstances.

Ugh the FAFSA is SUCH a mess this year!!! I spent 3 days trying to fill it out and kept getting errors on the asset page. Finally got through to someone who explained that yes, it's TODAY'S values for assets but 2022 for income. Makes zero sense. The whole system is designed to CONFUSE people!!!

I just went through this with my twin boys. You definitely need to report current assets (cash, investments, etc.) as of the day you're completing the form. The 2022 tax information is just for income. If you've had major financial changes, you'll need to wait until you get your SAI score, then contact each school's financial aid office individually to request a Professional Judgment review (sometimes called a Special Circumstances review). Each school handles these differently, but most won't even look at them until after they've received your FAFSA information.

my sister jusst went thru this and her college financial aid office told her 2 call FSA directly 2 explain the situation but she kept getting disconnected lol

After dealing with the same frustration and getting disconnected multiple times, I found this service called Claimyr that helped me actually get through to a FAFSA agent. It basically holds your place in line and calls you back when an agent is available. Saved me hours of hold time! Their website is claimyr.com and they have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent I spoke with confirmed that assets are current values while income is 2022 data. She also explained how to document special circumstances for the financial aid offices.

To answer your follow-up question about Professional Judgment reviews - yes, they absolutely require documentation. For medical expenses, you would need to provide bills, insurance statements, proof of payment, etc. The financial aid office will have a specific form and required documentation list. Each school handles these differently, but most won't consider adjustments until after they've received your FAFSA information and calculated an initial aid package. The good news is that significant medical expenses are one of the most commonly approved reasons for aid adjustments.

Just wanted to add that for the asset questions, remember they're asking for net worth, so subtract any debt against those assets. For example, if you have a rental property worth $300,000 but owe $200,000 on the mortgage, you'd report the net worth as $100,000. Same with any investment accounts - report current market value minus any loans against them.

thx everyone this thread was super helpful! gonna fix my fafsa 2nite

As someone who just went through this nightmare with my own kids, I can confirm what others have said - assets are CURRENT values as of when you submit the FAFSA, while income uses 2022 tax data. It's counterintuitive but that's how the formula works. One tip that helped me: take screenshots of your bank/investment account balances on the day you submit, because if you need to provide verification later, schools sometimes ask for proof of the asset values you reported. Also, don't stress too much about minor day-to-day fluctuations in investment accounts - they understand market values change daily. The key is being consistent and honest about what you have RIGHT NOW. Good luck!