What Tax Year Is Used for FAFSA 2021-22

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What Tax Year Is Used for FAFSA 2021-22?

For the Free Application for Federal Student Aid (FAFSA) 2021-22, the tax year used is the prior-prior year. This means that the income and tax information required for the FAFSA application will be based on your tax returns from two years prior to the academic year you are applying for. For the FAFSA 2021-22, you will need to provide information from your 2019 tax returns.

The use of prior-prior year (PPY) income information was introduced in 2016 to simplify the financial aid application process. It allows students and their families to complete the FAFSA using tax information that they have already filed, as most people have already completed their tax returns by the time they apply for financial aid.

By using PPY income information, students can file the FAFSA as early as October 1st each year, giving them more time to explore and apply for financial aid options. This change also eliminates the need for students and families to estimate their income on the FAFSA application and later update it once they have filed their tax returns.

FAQs:

1. Why is the prior-prior year used for FAFSA 2021-22?
Using prior-prior year income information simplifies the financial aid application process and allows students to apply for aid earlier.

2. What if my financial situation has changed since the prior-prior year?
If your financial situation has significantly changed since the prior-prior year, you can contact the financial aid office of the school you plan to attend to discuss your situation and potentially request a professional judgment review.

3. Can I update my FAFSA with more recent tax information?
Once you have submitted your FAFSA using the prior-prior year tax information, you cannot update it with more recent tax information. However, you can contact the financial aid office to discuss any changes in your financial situation.

4. How can I obtain my prior-prior year tax information if I don’t have it?
If you don’t have a copy of your prior-prior year tax returns, you can request a tax return transcript from the Internal Revenue Service (IRS) or use the IRS Data Retrieval Tool (DRT) on the FAFSA application if you are eligible.

5. What if I filed for an extension on my prior-prior year tax returns?
If you filed for an extension on your prior-prior year tax returns, you can estimate your income on the FAFSA using the information available to you. Once you have filed your tax returns, you can update your FAFSA.

6. Can I use estimated income on the FAFSA if I haven’t filed my prior-prior year tax returns?
If you haven’t filed your prior-prior year tax returns, you can estimate your income on the FAFSA. However, it is important to update your FAFSA once you have filed your tax returns.

7. Can I use my current year’s tax returns for FAFSA if I haven’t filed my prior-prior year returns?
No, you cannot use your current year’s tax returns for the FAFSA if you haven’t filed your prior-prior year returns. You must use the prior-prior year tax information.

8. Can I use the prior-prior year tax information for state financial aid applications as well?
The use of prior-prior year tax information for financial aid applications may vary by state. It is recommended to check with your state’s financial aid office for specific instructions regarding state aid applications.
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