FAFSA FAFSA Verification Process 2 — Questions and Answers
Question 1: What is an IRS Tax Transcript used for in the verification process?
- Verifying identity
- Confirming income and tax information reported on FAFSA (Correct answer)
- Proving enrollment status
- Documenting housing costs
Correct answer: Confirming income and tax information reported on FAFSA
The IRS Tax Transcript confirms the accuracy of income and tax information a student or parent reported on their FAFSA application.
Question 2: If a FAFSA applicant did not file a tax return, what document might a school request instead?
- A W-2 form
- An IRS Verification of Non-Filing Letter (Correct answer)
- A pay stub
- A 1099 form
Correct answer: An IRS Verification of Non-Filing Letter
An IRS Verification of Non-Filing Letter confirms that no tax return was filed for a given year and is used in the verification process.
Question 3: During identity verification (V4/V5), what must a student typically provide?
- A photo ID and a signed statement of educational purpose (Correct answer)
- Only a Social Security card
- A birth certificate only
- A school enrollment form
Correct answer: A photo ID and a signed statement of educational purpose
For identity verification, students must present a valid government-issued photo ID and sign a Statement of Educational Purpose.
Question 4: What is a verification worksheet?
- A document schools create to collect additional FAFSA-related information (Correct answer)
- An IRS form for tax filing
- A FAFSA correction form
- A scholarship application
Correct answer: A document schools create to collect additional FAFSA-related information
Verification worksheets are documents created by schools to collect household size, income, and other data to compare against FAFSA submissions.
Question 5: What must a school do if verification reveals discrepancies in a student's FAFSA?
- Automatically deny all aid
- Correct the FAFSA and recalculate aid eligibility (Correct answer)
- Refer the student to the IRS
- Suspend the student
Correct answer: Correct the FAFSA and recalculate aid eligibility
If verification reveals errors, the school must correct the FAFSA data and recalculate the student's aid package based on accurate information.
Question 6: FAFSA applicants who use the IRS DRT and do not change the transferred data are generally:
- Still required to complete full verification
- Exempt from income verification but not other verification items (Correct answer)
- Fully exempt from all verification
- Required to resubmit their taxes
Correct answer: Exempt from income verification but not other verification items
Students who use the IRS DRT and do not alter the transferred data may be exempt from income verification but still need to verify other items like household size.
FAFSA FAFSA Verification Process 2
What is an IRS Tax Transcript used for in the verification process?