What is FAFSA?
FAFSA, short for Free Application for Federal Student Aid, is a crucial form that students complete to access financial aid for their education. This aid can come in the form of grants, scholarships, work-study programs, and federal student loans. FAFSA plays an important role in making higher education financially feasible for millions of students.
Can you get FAFSA if you owe tax?
The answer is, YES. Failing to file a required federal income tax return, on the other hand, will prevent you from receiving federal student aid. The Free Application for Federal Student Aid requires income and tax information from the prior year. Most applicants should have already filed a tax return for this year by the time they file the FAFSA.
The Impact of Owing Taxes on FAFSA
1. Completing FAFSA
When you fill out your FAFSA form, you’ll need to provide information about your income and assets. If you owe taxes, it’s important to be honest and accurate in reporting this information.
Here is the type of tax return information required:
- Social Security Number
- Filing status (for you/your parents)
- The type of tax form you filed (ex. Form 1040)
- Adjusted Gross Income amount for that year
- Wages income, cash, savings account amounts
- Education credits received, child support
- Untaxed income for that year (ex. tax exempt interest)
- Income tax owed
- Student aid (ex. taxable grants/scholarships and education credits)
2. Impact on Federal Aid
Owing taxes won’t automatically disqualify you from receiving federal aid. However, it can affect your Expected Family Contribution (EFC), which is used to determine your eligibility for need-based aid. A higher EFC could mean receiving less aid.
3. Priority Tax to the rescue
Here’s where Priority Tax Relief can help you! If you’re dealing with tax debt that’s affecting your FAFSA eligibility, our team of experts can help you explore tax relief options. We’ll work to resolve your tax issues and ensure you’re in the best possible position to secure financial aid for your education.
You can get a FAFSA even if you owe taxes. It’s essential to be honest when reporting your financial information on your FAFSA form. If tax debt is impacting your eligibility, you don’t have to worry because Priority Tax Relief has your back. We’re here to assist you in resolving your tax matters so that you can focus on pursuing your educational dreams without financial roadblocks.
Remember, education is a powerful tool, and with the right financial support and expert guidance, you can achieve your goals.
Ready to learn more about how Priority Tax Relief can help you with tax debt? Visit our website for more information: Priority Tax Relief
