FAFSA & Unfiled Returns

The FAFSA (Free Application for Federal Student Aid) requires that the applicant, often the parent of a prospective or current student, have filed a federal income tax return for the current year, unless an extension has been filed or gross income is under the IRS filing threshold. Parents or applicants with unfiled returns face the prospect of ineligibility for federal financial aid, unless a tax return is filed.  While the Department of Education previously allowed applicants to estimate tax amounts that would be filed in the coming year, FAFSA now requires information from earlier tax returns, which is a problem if you have unfiled taxes.

FAFSA TaxesAt the law firm of Daniel Rosefelt & Associates, our professional dual licensed tax attorney and CPA understands the important role FAFSA plays in ensuring your child gets the education they deserve. Our firm is experienced in quickly and efficiently getting parents and applicants back into tax compliance, so they maintain eligibility and receive the aid they need for their studies.

FAFSA Tax Requirements

Filling out and submitting a Free Application for Federal Student Aid (FAFSA) should be at the top of your priority list if your child plans on continuing their education. Each year, the Federal Student Aid Program awards as much as $150 billion in grants, low interest student loans, and work study payments, helping to defray college costs for more than 15 million students and their families. To fill out the FAFSA, you will need the following information:

  • Your Social Security and driver’s license number;
  • Information on your financial accounts;
  • Records for non-taxable income, such as child support, veteran’s benefits, and interest income;
  • Information from your state and federal tax returns, including income amounts reported on IRS form W-2.

You should begin filling out the FAFSA in the year before your child plans on entering college to ensure filing deadlines are met.

Dealing With Unfiled Taxes and FAFSA

Under IRS guidelines, failing to file your taxes or having years of unfiled tax returns will subject you to heavy interest and penalties, while making you ineligible for certain federal programs, including financial aid. The IRS may end up filing a substitute return for you, which could increase your overall tax debt by not giving you credit for allowances and exceptions you are legally entitled to receive.

Our dual licensed tax attorney & CPA , and team of tax professionals can assist you in getting caught up on your unfiled taxes and advise you on the best way to address any tax debts you owe. We help gather pertinent information needed to file prior year tax returns, while negotiating either an Offer In Comrpomise or payment arrangements to help avoid additional interest and penalties.

Contact Our Professional Tax Attorneys Today

If unfiled tax returns are impacting your child’s ability to get federal student aid, contact the law office of Daniel Rosefelt & Associates today. We have a team of experienced tax professionals, including our principal attorney who is dual licensed as a tax attorney and a CPA, standing by ready to assist you and your family. Our office serves Maryland, Washington, D.C., Virginia, Florida and clients throughout  the nation; call or contact our office online today to request a confidential case consultation.