FAFSA tax info: Manual entry vs. IRS Data Retrieval Tool - which is safer?

ALWAYS use the IRS Data Retrieval Tool if you can. It significantly reduces the chance of errors and actually decreases your likelihood of being selected for verification. The Department of Education even says this on their website. I've processed financial aid for 8 years and manually entered applications get flagged for verification way more often.

i did manual entry last year and got picked for verification it was a NIGHTMARE had to send in like 5 diff tax forms and waited 2 extra months for my aid

I actually prefer the manual entry method because I like having control over exactly what goes in my application. I've done it for three years and never had any verification issues. Just triple-check your numbers against your tax returns, especially your AGI, federal tax paid, and any untaxed income. If you're really worried about mistakes, have someone else double-check your numbers before submitting.

There are actually specific situations where you CAN'T use the IRS Data Retrieval Tool, even if you want to: - If you filed an amended tax return - If you filed as "Married Filing Separately" - If you filed a foreign tax return - If you filed within the last 3 weeks (the IRS needs time to process) So if any of those apply to you, you'll have to do manual entry regardless. Just make sure you have your actual tax forms in front of you, not just your W-2s.

My son manually entered all his tax info on his FAFSA last year because he was afraid of linking to the IRS (no idea why lol). He made a small typo in his AGI - typed $32,456 instead of $23,456. Got flagged for verification immediately and his school's financial aid office was SO backed up it took nearly 3 months to resolve! He almost lost his housing because of the delay. USE THE IRS TOOL!!

Has anyone here tried calling Federal Student Aid to ask about this? I spent literally 2 hours on hold yesterday trying to get through to ask about the Data Retrieval Tool because my taxes are complicated (self-employed with business income). I finally gave up. Their phone system is the absolute worst.

I manually entered my stuff cuz the IRS tool was down for maintenance when I was filling out my FAFSA and I didn't want to wait. BIG MISTAKE. Got verification request, had to submit all kinds of extra documents, and my SAI ended up being higher than it should've been. Had to file a correction which delayed my aid by almost 2 months. NOT WORTH IT

One more thought - if your tax situation has changed drastically since your last filing (job loss, significant income reduction), you might actually WANT to go through verification. In that case, you can provide additional documentation showing your current financial situation through a process called Professional Judgment review AFTER your FAFSA is processed. This might get you more aid than what your tax return suggests you qualify for.

Just wanted to add my experience as someone who's done both methods. Used manual entry my freshman year (2020) and got selected for verification - had to provide tax transcripts, W-2s, and bank statements. It was stressful and delayed my aid package. Since then I've used the IRS Data Retrieval Tool every year and never had verification issues. The tool pulls the exact data the IRS has on file, so there's literally no chance of typos or transcription errors. Plus it populates everything automatically so you don't have to hunt through your tax forms for specific line numbers. Definitely go with the IRS tool if you're eligible!