FAFSA timing question: What tax year to use for 2025-2026 college application?

Thank you! That makes sense about the 2023 taxes. So even though we file this in December 2024, they're looking at our 2023 taxes, not our 2024 taxes (which wouldn't even be filed yet). Is that right?

Great suggestion about the FSA IDs! I had no idea those could take time to process. We'll get those set up soon. Are there any other documents besides tax returns and W-2s that we should have ready?

You'll also want records of current cash/savings/investments (not including your primary home or retirement accounts), any child support received, and veterans non-education benefits if applicable. For assets, they'll want values as of the day you file, not from your 2023 records.

If your financial situation has changed significantly since the tax year being used, you can actually request a professional judgment review (sometimes called an appeal) from the financial aid offices after you receive aid offers. Job loss, medical expenses, or other major changes can be considered, but you need documentation.

You're right on both counts! The FAFSA now produces a Student Aid Index (SAI) instead of the old Expected Family Contribution (EFC). And yes, the opening date for the FAFSA application period was changed to December 1st (rather than October 1st previously). But the principle of using prior-prior year tax information remains the same.

Thanks for the tip! I'll bookmark that for when we inevitably run into problems. Did you find the agents were actually able to help once you got through?

Yes, actually! The agent I reached was able to explain why our application was flagged for verification and exactly what documents we needed to submit. Much better than trying to figure it out from the vague notices on the website.

Oh that's really good to know! I'll double-check our 2023 return for any errors. And I didn't realize you could list up to 20 schools - that's helpful since my son isn't sure where all he'll apply yet.

Thanks for mentioning this. I'm a single parent with full custody, but his father does pay some child support. Would his father need to create an FSA ID too? Or am I the only parent contributor since he lives with me full-time?

Since you have full custody, you would be the only parent contributor required on the FAFSA. The child support you receive would be reported as untaxed income, but his father wouldn't need to create an FSA ID or directly provide information. This is one situation where the FAFSA is actually more straightforward!

Yes, outside scholarships can impact financial aid packages. Federal regulations require schools to consider all financial assistance when awarding aid. If a student receives scholarships exceeding their calculated need, the school must reduce other need-based aid. Schools usually reduce loans first before grants, but policies vary by institution. It's called "scholarship displacement" and unfortunately is common practice.

You've got the main points covered! One final tip: mark your calendar for the first week of December 2024. While the FAFSA opens December 1st, it's often better to wait a few days to avoid first-day technical issues. Also, some states award financial aid on a first-come, first-served basis, so submitting in early December is still important for maximum aid consideration. Good luck with the process!

This is such great advice about the Social Security card! I wouldn't have thought about the name matching being so strict. My son does go by a shortened version of his legal name sometimes, so I'll make sure we use his full legal name exactly as it appears on his SS card. Fortunately he doesn't have significant assets - just a small savings account from summer jobs - but it's good to know about the different assessment rates. Thanks for the heads up!

Oh wow, I had no idea about CSS Profile! That's a huge detail that could have blindsided us. So if I'm understanding correctly, we'd need to submit CSS Profile in October 2024 (before FAFSA opens in December) for any private colleges he's considering? And it requires even more financial documentation than FAFSA? This is getting more complex than I thought, but I'm really grateful you mentioned it. Do you know if there's a list somewhere of which schools require CSS Profile, or do I need to check each college's financial aid website individually?

You can find the complete list of schools that require CSS Profile on the College Board website - they have a searchable tool where you can look up specific colleges. Most Ivy League schools, many liberal arts colleges, and quite a few private universities require it. The CSS Profile does ask for much more detailed info - things like home equity, business assets, medical expenses, and even asks about assets held in siblings' names. It's definitely more time-consuming than FAFSA, but many schools use it to award their own institutional grants which can be substantial. I'd recommend checking the financial aid requirements for each school on your son's potential list as early as possible so you can plan accordingly!

Great question about 529 plans! Yes, 529 college savings plans owned by parents or the student are reported as parent assets on the FAFSA (even if the student is the beneficiary), which means they're assessed at the lower 5.64% rate rather than the 20% student asset rate. This is actually beneficial since 529s are specifically designed for education expenses. However, 529 plans owned by grandparents or other relatives don't get reported as assets on the FAFSA, but any distributions from those accounts in the previous tax year would be reported as untaxed student income, which can have a bigger impact on aid eligibility. So if grandparents have 529s for your daughter, it's worth strategizing about when to use those funds!