Tax Transcript Decoder: Comparison of 2016 Tax Return and ...

1 Tax Transcript Decoder 2018 NASFAA. All rights OF 2016 TAX Return AND TAX Transcript DATA 2018-2019 Award Year (version )Information in this publication is current as of April 12, 2018 by National Association of Student Financial Aid Administrators (NASFAA). All rights reserved. NASFAA has prepared this document for u se only by personnel, licensees, and members. The information contained herein is pr otected by copyright. No part of this document may be reproduced, translated, or transmitted in any form or by any means, electronically or mechanically, without prior written permission from NASFAA. NASFAA SHALL NOT B E LIABLE FOR TECHNICAL OR EDITORIAL ERRORS OR OMISSIONS CONTAINED HEREIN; NOR FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM TH E FURNISHING, PERFORMANCE, OR USE OF THIS MATERIAL.

2 This publicati on contains material related to the federal student aid programs under Titl e IV of the Higher Education Act and/or T itle VII or Title VIII o f the Public Health Service Act. While we believe that the i nformation contained herein is accurate and factual, this publicati on has not been reviewed or approved by the Department of Education, the Department of H ealth and Human Services, or the Department of t he I nterior. The Free Application for Federal Student Aid (FAFSA ) i s a registered trademark of the Department of reserves the right to revise this document and/or change product features or specifications without advance notice. October 2018 Tax Transcript Decoder Comparison of 2016 Tax Return and Tax Transcript Data FAFSA instructions direct applicants to o btain information from certain lines on I RS i ncome tax r eturns, which differ based on whether the tax filer completed a Form 1040, 1040A or 10 40EZ.

3 For the most part, the instructions identify the relevant lines on the tax Return b y l ine number. These line item numbers do n ot appear on I RS ta x tr anscripts. Instead, each item is identified by n ame. When verifying FAFSA data using tax transcripts, it is i mportant to identify the correct answer. The following pages contain sample tax returns and corresponding tax Return transcripts. Relevant line items have been highlighted as follows: Red: information to help cross-reference tax Return line items with corresponding data on the tax Return Transcript . Yellow: tax Return line items that are required verification data elements for the 2018-2019 award year. Blue: tax Return line items listed in the FAFSA instructions, which should be reviewed for potential conflicting information. Tax Return Line Items for 2018-2019 Verification 2016 1040 EZ 2016 1040A 2016 1040 AGI 4 21 37 Income tax paid 10 28 minus 36 56 minus 46 Education credits N/A 33 50 IRA deductions and payments 17 28 plus 32 Tax -exempt interest income 8b 8b Untaxed portions of IRA distributions* 11a minus 11b 15a minus 15b Untaxed portions of pensions* 12a minus 12b 16a minus 16b Tax Return Transcript Line Items for 2018-2019 Verification 2016 1040 EZ 2016 1040A 2016 1040 AGI ADJUSTED GROSS INCOME PER COMPUTER Income tax paid** TOTAL TAX LIABILITY TP FIGURES PER COMPUTER less HEALTH CARE.

4 INDIVIDUAL RESPONSIBILITY TENTATIVE TAX PER COMPUTER less TOTAL CREDITS PER COMPUTER INCOME TAX AFTER CREDITS PER COMPUTER less EXCESS ADVANCE PREMIUM TAX CREDIT REPAYMENT AMOUNT Education credits N/A EDUCATION CREDIT PER COMPUTER IRA deductions and payments IRA DEDUCTION PER COMPUTER KEOGH/SEP CONTRIBUTION DEDUCTION plus IRA DEDUCTION PER COMPUTER Tax -exempt interest income TAX -EXEMPT INTEREST Untaxed portions of IRA distributions* TOTAL IRA DISTRIBUTIONS less TAXABLE IRA DISTRIBUTIONS Untaxed portions of pensions* TOTAL PENSIONS AND ANNUITIES less TAXABLE PENSION/ANNUITY AMOUNT *Exclude rollovers.**For all transcripts, if income tax paid is negative, use 0 (zero). 2018 NASFAA. All rights 1040 EZDepartment of the Treasury Internal Revenue ServiceIncome Tax Return for Single and Joint Filers With No Dependents (99)2016 OMB No.

5 1545-0074 Last name Your social security number If a joint Return , spouse s first name and initial Last name Spouse s social security number cMake sure the SSN(s) above are no. Foreign country nameForeign province/state/countyForeign postal code Presidential Election CampaignCheck here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You SpouseIncomeAttach Form(s) W-2 , but do not attach, any Wages, salaries, and tips. This should be shown in box 1 of your Form(s) W-2. Attach your Form(s) 2 Taxable interest. If the total is over $1,500, you cannot use Form 3 Unemployment compensation and Alaska Permanent Fund dividends (see instructions).3 4 Add lines 1, 2, and 3. This is your adjusted gross 5 5 6 Subtract line 5 from line 4. If line 5 is larger than line 4, enter -0.

6 This is your taxable income. a6 Payments, Credits, and Tax7 Federal income tax withheld from Form(s) W-2 and 8a Earned income credit (EIC) (see instructions)8a b Nontaxable combat pay 9 Add lines 7 and 8a. These are your total payments and credits. a910 Tax. Use the amount on line 6 above to find your tax in the tax table in the instructions. Then, enter the tax from the table on this care: individual responsibility (see instructions) Full-year coverage 1112 Add lines 10 and 11. This is your total it directly deposited! See instructions and fill in 13b, 13c, and 13d, or Form If line 9 is larger than line 12, subtract line 12 from line 9. This is your refund. If Form 8888 is attached, check here a13aab Routing numbera c Type:CheckingSavingsad Account numberAmount You Owe14 If line 12 is larger than line 9, subtract line 9 from line 12.

7 This is the amount you owe. For details on how to pay, see instructions. a14 Third Party DesigneeDo you want to allow another person to discuss this Return with the IRS (see instructions)?Yes. Complete s name aPhone no. aPersonal identification number (PIN)aSign HereJoint Return ? See a copy for your penalties of perjury, I declare that I have examined this Return and, to the best of my knowledge and belief, it is true, correct, and accurately lists all amounts and sources of income I received during the tax year. Declaration of preparer (other than the taxpayer) is based on all information of which the preparer has any signatureDateYour occupationDaytime phone numberSpouse s signature. If a joint Return , both must s occupationIf the IRS sent you an Identity Protection PIN, enter it here (see inst.)

8 Paid Preparer Use OnlyPrint/Type preparer s name Preparer s signature Date Check if self-employed PTINFirm s name aFirm s address aFirm s EIN aPhone no. For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see No. 11329 WForm 1040EZ (2016)Home address (number and street). If you have a box, see instructions. 1629 F. StreetCity, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Hadley, MA 999993,25300 Your first name and initial Chloe GHernandezA A A A A A A A AIf someone can claim you (or your spouse if a joint Return ) as a dependent, check the applicable box(es) below and enter the amount from the worksheet on back. You SpouseIf no one can claim you (or your spouse if a joint Return ), enter $10,350 if single; $20,700 if married filing jointly.

9 See back for ,603000002180521805000218053,25300000 XXXXXXXXXXXXXXXXXXXXXXXXXX2/15/2017 Student(555) 529-1614 Sample IRS Form 1040EZ: Chloe HernandezChloe G. Hernandez4 2018 NASFAA. All rights 1040EZ (2016)Page 2 Use this form if Your filing status is single or married filing jointly. If you are not sure about your filing status, see instructions. You (and your spouse if married filing jointly) were under age 65 and not blind at the end of 2016. If you were born onJanuary 1, 1952, you are considered to be age 65 at the end of 2016. You do not claim any dependents. For information on dependents, see Pub. 501. Your taxable income (line 6) is less than $100,000. You do not claim any adjustments to income. For information on adjustments to income, use the Tax Topics listed underAdjustments to Income at (see instructions).

10 The only tax credit you can claim is the earned income credit (EIC). The credit may give you a refund even if you do not oweany tax. You do not need a qualifying child to claim the EIC. For information on credits, use the Tax Topics listed under TaxCredits at (see instructions). If you received a Form 1098-T or paid higher education expenses, you maybe eligible for a tax credit or deduction that you must claim on Form 1040A or Form 1040. For more information on taxbenefits for education, see Pub. : If you can claim the premium tax credit or you received any advance payment of the premium tax credit in 2016, youmust use Form 1040A or Form 1040. You had only wages, salaries, tips, taxable scholarship or fellowship grants, unemployment compensation, or AlaskaPermanent Fund dividends, and your taxable interest was not over $1,500.