Whether your high schooler is dreaming of ivy-covered dorm rooms or the state college up the road, chances are you’re thinking of filing for FAFSA and how you’re going to pay for it. Between tuition, room and board, books, and living expenses, the bill keeps getting higher and higher.
That’s where the Free Application for Federal Student Aid (FAFSA) comes in. Whether you’re looking to apply for loans, government-funded scholarships, or your child’s school’s financial aid package, you’ll need to fill out the FAFSA using accurate income information from your tax return.
It is important to know that a tax return is almost always required to fill out a FAFSA application.
What Tax Return Do You Need for FAFSA?
The tax return required for FAFSA is based on the return filed 2 years prior to the start of the school term. In the case of FAFSA 2025-2026, you will need to report income from your 2023 income (filed in 2024).
What tax return information do I need for FAFSA?
You will need the following tax information when filling out the FAFSA application:
- Social Security Number
- Filing status
- Type of tax form filed (Form 1040, W-2s, etc.)
- Adjusted Gross Income amount for the year of your tax return
- Wages, salaries, cash and other earned income
- Income from savings accounts or investments
- Education credits received
- Child support
- Untaxed income (such as tax-exempt interest)
- Total Income tax paid
Can I file FAFSA without a tax return?
Yes, but only in certain situations. There are two exemption qualifications where you can file FAFSA without a tax return:
- If you (as a parent) make less than the minimum income amount to file taxes, or
- If the child is a non-U.S citizen who also lives outside the U.S.
If neither of these apply to you, you will have to file your tax return in order to apply for FAFSA.
Filing your taxes is extremely important to secure your child’s eligibility for financial aid at any U.S. university as well as for any scholarship from the state or federal government. This will also impact their ability to take out loans from a reputable lender.
Understanding FAFSA’s Independent vs. Dependent Student
Essentially, FAFSA’s dependency status determines whether you need to submit your tax returns or your child needs to submit theirs. An “independent” student will only submit the application using their own income and tax return, whereas a “dependent” student will need your tax information.
Is my child considered a “dependent student” if I file them as a dependent?
Even if you claim your child as a dependent, they won’t necessarily be considered a “dependent student” in the eyes of the U.S. government. Any one of the following circumstances will lead to FAFSA considering your child a “dependent.”
- They are 24 or older by the first January of the school year for which you are applying for financial aid.
- They are married or separated but not divorced.
- They are working toward a master’s or doctorate degree
- They have children who receive more than half of their support from your child
- They have dependents other than children or a spouse who live with them and receive more than half of support from them.
- They are currently serving on active duty in the U.S. armed forces
- They are a veteran of the U.S. armed forces
- They were orphaned, in foster care, or a ward of the court
- They are an emancipated minor or in a legal guardianship as determined by the court
- They are an unaccompanied youth who is homeless or self-supporting and at risk of being homeless
Unless any of the above applies to your child, your tax information will be required to submit a FAFSA application.
How Your Income Affects FAFSA Aid Amounts
Your income plays a major role in how much financial aid your child receives. FAFSA uses your Adjusted Gross Income (AGI) to calculate your Student Aid Index (SAI) that determines aid eligibility. Lower reported income may increase eligibility for financial aid and higher income may reduce the amount of aid offered. Assets, household size, and number of children can also impact the amount of aid received.
Let Boxelder Help You File with Confidence
Don’t let your child get left behind when they take their first steps into adulthood. At Boxelder Consulting, our tax professionals work with families to prepare their returns so they can complete their FAFSA without delays. We’ve helped thousands of Coloradans file their taxes and comply with FAFSA regulations.
Reach out to a Boxelder tax professional today and keep your child’s financial future secure.
