FAFSA deadline approaching but 2022 taxes still not filed - what to put for taxable income?
My husband and I are in a tricky situation with our 2022 taxes due to some bookkeeping issues with his small business. We're working with the IRS and should have everything sorted by May 15th, but my daughter's college needs the FAFSA submitted by May 2nd. I'm stuck on what to put for taxable income since we haven't completed our taxes yet. I know I can give consent to retrieve tax info, but there's nothing for them to retrieve yet! The financial aid office said we can submit now and make corrections later, but what should I put as our taxable income in the meantime? Should I estimate based on our 2021 returns? Use our W-2s and make a guess on the business income? I'm worried about getting flagged for verification if my estimate is way off.
20 comments
Join the conversation
Dmitry Kuznetsov
This is actually a common issue! You should use your best estimate based on your most recent pay stubs, W-2s, and an approximation of your husband's business income. When you complete the FAFSA, there's actually an option to indicate that you "Will file" rather than "Have filed." Make sure you select that option. After your taxes are complete, you'll need to go back and make corrections to your FAFSA. The important thing is meeting that May 2nd deadline, even with estimated figures.
0 coins
Sofia Hernandez
•Thanks so much! I didn't realize there was a "Will file" option - that makes me feel better. Do you know if colleges typically flag these applications for verification more often? I'm worried about causing delays in my daughter's financial aid package.
0 coins
Ava Thompson
we had to do the exact same thing last year!! my husbands construction business was a mess with the books. i just put our best guess and checked the will file box. came back later and fixed it once taxes were done. everything worked out fine but it was stressful
0 coins
Sofia Hernandez
•That's reassuring to hear! Did you have to go through verification after updating the information? That's my biggest worry right now.
0 coins
Miguel Ramos
From my experience working in financial aid, the key is to be as accurate as possible with your estimate. Pull together your W-2s, 1099s, and any other income documentation you have. Calculate what you can, and make a reasonable estimate of business income based on previous years and current bookkeeping. When completing the FAFSA: 1. Select "Will file" for your tax filing status 2. Enter your best estimate for the Adjusted Gross Income (AGI) and tax paid 3. Make note in your records what you submitted 4. Update the FAFSA with correct information immediately after filing taxes Most importantly, communicate with your daughter's financial aid office. Let them know your situation in writing so they have it documented. Many schools have procedures for handling these situations.
0 coins
Sofia Hernandez
•Thank you for such detailed advice! I'll definitely follow these steps. Is there any documentation I should keep on hand to show how I calculated my estimates in case we get questioned later?
0 coins
Zainab Ibrahim
I'M IN THE EXACT SAME BOAT!!! My husband's contracting business is a nightmare with receipts everywhere and we're also working with the IRS to get 2022 filed. Our son's college is demanding the FAFSA by May 1st and I've been panicking. I wish the system understood that small business owners sometimes have complicated taxes that take longer! Following this thread for advice...
0 coins
StarSailor
•Small business owners always get screwed on this stuff! The FAFSA system assumes everyone has nice neat W-2 jobs with perfect bookkeeping. 🙄
0 coins
Connor O'Brien
Make sure when you do update the FAFSA after filing your taxes that you do it right away! My sister waited like 3 weeks after they finally filed and her daughter's aid package got delayed because of it. The financial aid office was super annoyed about it.
0 coins
Sofia Hernandez
•Oh that's good to know! I'll definitely update it immediately once we file. Did her daughter still get the same amount of aid in the end?
0 coins
Yara Sabbagh
I've been trying to contact FSA for days with a similar question and can't get through. Tried calling multiple times and either get disconnected or wait forever. So frustrating when you're trying to do things correctly and can't even get basic questions answered!
0 coins
Dmitry Kuznetsov
•Have you tried using Claimyr? It's a service that basically waits on hold with FSA for you and calls you back when an agent is available. Saved me hours of hold time. You can see how it works at claimyr.com or check out their demo video: https://youtu.be/TbC8dZQWYNQ I used it last month when I needed to speak to someone about my son's verification process and it worked great.
0 coins
Yara Sabbagh
•Never heard of that before! Going to check it out now because I'm desperate to get this sorted. Thanks for the recommendation!
0 coins
StarSailor
why dont u just wait till after may 15 to submit the whole fafsa? thats what i would do
0 coins
Miguel Ramos
•That would be problematic since the poster mentioned their school's deadline is May 2nd. Missing priority deadlines can result in reduced institutional aid eligibility and potentially missing out on first-come, first-served aid programs. It's almost always better to submit with estimates and correct later than to miss institutional deadlines.
0 coins
StarSailor
•oh didnt read that part. my bad lol
0 coins
Ava Thompson
oh also i forgot to say make sure ur using ur adjusted gross income (AGI) not just total income. we made that mistake at first and had to fix it. the AGI is after all the business deductions so its usually way lower than total income for small business owners!
0 coins
Sofia Hernandez
•That's a really helpful point! I'll make sure to factor in the likely deductions when making my estimate. Thank you!
0 coins
Miguel Ramos
After you update your FAFSA with your actual tax information, I would recommend following up with the financial aid office with an email confirming you've made the update. Include your daughter's student ID number and the date you made the correction. This creates a paper trail and can help prevent delays if there are any issues with the electronic updates. Also, if your income for 2022 ends up being significantly different than 2021 (either higher or lower), be prepared to explain this to the financial aid office. Large changes can sometimes trigger additional verification steps.
0 coins
Sofia Hernandez
•That's excellent advice about following up with an email. I'll definitely do that. Our 2022 income will likely be about 20% higher than 2021 due to husband's business growing, so I'll prepare some documentation to explain that change as well.
0 coins