FAFSA asset reporting timing confusion - current values or tax year values?

You report assets as of TODAY (the day you're completing the FAFSA), not from the tax year you're reporting income from. This is actually one of the most common misunderstandings with FAFSA. The income information comes from the prior-prior year (PPY), but asset values are current. So if you're filling out the 2025-2026 FAFSA, you'll use 2023 tax info, but you'll report asset values exactly as they are on the day you submit the application.

omg i made this exact mistake last year!! put in old asset amounts and got flagged for verification becuz my bank accounts didnt match what i reported. total nightmare

This is definitely confusing, but here's the official breakdown: 1. Income information: Based on prior-prior year (so 2023 tax info for 2025-2026 FAFSA) 2. Asset information: Based on current values when you complete the form Also, make sure you understand what counts as an asset for FAFSA purposes. Some things you might not expect: - The value of rental properties IS included (use current market value minus mortgage) - The value of the home you live in is NOT included - Business values with fewer than 100 employees are usually NOT included - Retirement accounts are NOT included But cash, checking/savings accounts, investments, and secondary properties ARE included. This is why your SAI can change dramatically even with the same income.

The whole system is designed to PUNISH people who save money!! My daughter got WAY less aid than her friend whose parents spent every dime they made. Same income but we had savings for retirement and got penalized. The asset reporting is RIDICULOUS and unfair!

Has anyone else noticed that the new FAFSA seems to be weighing assets differently? I swear our SAI went up way more than I expected just from having a moderate amount in savings. Almost feels like they've increased the percentage they count from assets.

I worked at a financial aid office for years, and this question came up constantly. The asset reporting timing trips up so many families. One thing to remember: if your assets change significantly AFTER you submit the FAFSA (like if you use savings to pay off debt or make a major purchase), you can actually contact your school's financial aid office and request a professional judgment review. Some schools will adjust your aid package if there's been a substantial change in your asset situation. Also, run the Federal Student Aid Estimator before you apply so you aren't surprised by how assets affect your aid eligibility: https://studentaid.gov/aid-estimator/

I've been trying for TWO WEEKS to get through to someone at Federal Student Aid to ask this exact question! Every time I call I'm on hold for hours and then get disconnected. This is driving me crazy because I have to submit by the priority deadline next week!!

sidenote but does anyone know if cryptocurrency counts as an asset for FAFSA? I've got some bitcoin and not sure if I should be including that value

Thanks everyone for the helpful responses! Just to make sure I'm totally clear: 1. Income = 2023 tax year (for 2025-2026 FAFSA) 2. Assets = Current values as of today 3. Rental property = Current market value minus remaining mortgage 4. Retirement accounts = NOT included 5. Primary home = NOT included I think I've got it now. Going to work on getting my asset documentation together so I can submit an accurate application.

One more tip that might help - if you're unsure about the exact current value of assets like your rental property, it's better to use a reasonable estimate based on recent comparable sales or property tax assessments rather than delay your application. You can always provide documentation during verification if needed. The key is being consistent and honest about your reporting method. Also, don't forget that if you have any business or farm assets, there are special rules for those too depending on the size of the business. Good luck with your application!