Tax Return Transcript ready for 2023-24 verification season
January 26, 2023
The key to deciphering an IRS Tax Return Transcript is now available.
In a January 25 Electronic Announcement, the Department of Education released the 2023-2024 FAFSA Verification-IRS Tax Return Transcript Matrix. Financial aid professional can use the matrix for 2023-2024 verification of IRS tax return information included on the Free Application for Federal Student Aid (FAFSA) application.
According to the Department, “since the IRS Tax Return Transcript does not have line or item numbers and uses wording that may be different from what is used on the FAFSA, this matrix may help financial aid administrators map 2021 IRS Tax Return Transcript information to FAFSA/ISIR data.”
In the announcement, the Department outlines what items are to be verified on the 2023-24 FAFSA, such as where that item is located on the FAFSA, the Institutional Student Information Record (ISIR) item number, and the line item numbers from the 2021 IRS 1040 tax return.
In the announcement, there is additional guidance on how taxes and credits related to the Affordable Care Act should be treated in verification, as well as a notice that issues in previous years (erroneous AGIs and unemployment compensation) should not impact verification processing this year.