Revised 2016-2017 FAFSA Verification-IRS Tax Return Transcript Matrix

Ed has released corrected 2016-2017 IRS Tax Return Transcript Matrixes after several institutions noted that the original IRS Tax Return Transcript Matrix did not accurately describe which lines from an IRS Tax Return Transcript should be used for verification of Income Tax Paid. ED explains that this inaccuracy was the result of different placements on the IRS transcripts of certain taxes and credits that are related to the taxpayer’s enrollment (or lack of enrollment) in an approved health insurance program as provided for in the “Affordable Care Act” (ACA). Only a small number of taxpayers are impacted by these ACA taxes and credits.

Under provisions of the Higher Education Act (HEA), taxes and credits related to the ACA are not to be included in the amount of U.S. Income Tax that is used in the calculation of a student’s expected family contribution (EFC).