Common Tax Question Mistakes

Common Tax Question Mistakes

Below are three questions that are commonly misreported when completing the FAFSA. Please read the questions below and the guidance on how to properly report this information when completing the FAFSA:

What is the total amount of income tax paid?

  • This is the amount of taxes paid, not withheld. Be sure to use the correct line from your tax forms: (1040 - line 56 minus line 46, 1040A - line 28 minus 36, 1040EZ - line 10)
  • NOTE: If you use the IRS Data Retrieval Tool, this information will be transferred correctly from the IRS.

What is the total grant and scholarship aid reported to the IRS?

Only put an amount down if you claimed your scholarships or grants as income on your tax return. 

  • Do NOT put the amount listed on the tax return under the Tuition and Fees deduction (Form 1040 - line 34 or Form 1040a - line 19)
  • Do NOT put the amount listed on the tax return under the Education Credits (Form 1040 - line 49 or Form 1040a - line 31)
  • Do NOT put the amount listed on the 1098-T Form box 5.

Are you eligible to file a 1040A or 1040EZ?

In general, a person is NOT eligible to file a 1040A or 1040EZ if he or she:

  • Makes $100,000 or more (2016 Form 1040, line 37)
  • Itemize deductions (2016 Form 1040, line 40)
  • Receives income from his or her own business or farm (2016 Form 1040, lines 12 or 18)
  • Receives alimony (2016 Form 1040, line 11)

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