Tax Transcript Decoder© - NASFAA

1 Tax Transcript Decoder COMPARISON OF 2019 TAX RETURN AND TAX Transcript DATA 2021-22 Award Year (Version ) 2020 NASFAA . All rights reserved. 2020 by National Association of Student Financial Aid Administrators ( NASFAA ). All rights reserved. NASFAA has prepared this document for use only by personnel, licensees, and members. The information contained herein is protected 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 .

2 NASFAA SHALL NOT BE LIABLE FOR TECHNICAL OR EDITORIAL ERRORS OR OMISSIONS CONTAINED HEREIN; NOR FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM THE FURNISHING, PERFORMANCE, OR USE OF THIS MATERIAL. This publication contains material related to the federal student aid programs under Titl e IV of the Higher Education Act and/or Title VII or Title VIII of the Public Health Service Act. While we believe that the information contained herein is accurate and factual, this publication has not been reviewed or approved by the Department of Education, the Department of Health and Human Services, or the Department of the Interior.

3 The Free Application for Federal Student Aid (FAFSA ) i s a registered trademark of the Department of Education. NASFAA reserves the right to revise this document and/or c hange product features or specifications without advance notice. November 2020 Information in this publication is current as of November 19, 2020. 2 Tax Transcript Decoder Comparison of 2019 Tax Return and Tax Transcript Data FAFSA instructions direct applicants to obtain information from certain lines on IRS income tax returns and schedules.

4 For the most part, the instructions identify the relevant lines on the tax form by line number. These line item numbers do not appear on irs tax transcripts. Instead, each item is identified by name. When verifying FAFSA data using tax transcripts, it is important to identify the correct answer. The following pages contain a sample tax return and corresponding tax return Transcript . 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 .

5 Yellow: tax return line items that are required verification data elements for the 2021-22 award year. Blue: tax return line items listed in the FAFSA instructions, which should be reviewed for potential conflicting information. 2019 Tax Return Line Items for 2021-22 Verification 1040 and Schedules 2021-22 FAFSA Question AGI 1040 Line 8b 36 (S) and 84 (P) Income tax paid* 1040 Line 14 minus Schedule 2, Line 2 37 (S) and 85 (P) Education credits 1040 Schedule 3, Line 3 43a (S) and 91a (P) IRA deductions and payments 1040 Schedule 1, Line 15 + Line 19 44b (S) and 92b (P) Tax-exempt interest income 1040 Line 2a 44d (S) and 92d (P) Untaxed portions of IRA, pension, and annuity distributions (withdrawals)* 1040 Lines (4a + 4c)

6 Minus ( 4b + 4d) (e xclude rollovers) 44e (S) and 92e (P) 2019 Tax Return Transcript Line Items for 2021-22 Verification Tax Transcript 2021-22 FAFSA Question AGI ADJUSTED GROSS INCOME PER COMPUTER 36 (S) and 84 (P) Income tax paid* INCOME TAX AFTER CREDITS PER COMPUTER minus EXCESS ADVANCE PREMIUM TAX CREDIT REPAYMENT AMOUNT 37 (S) and 85 (P) Education credits EDUCATION CREDIT PER COMPUTER 43a (S) and 91a (P) IRA deductions and payments KEOGH/SEP CONTRIBUTION DEDUCTION plus IRA DEDUCTION PER COMPUTER 44b (S) and 92b (P) Tax-exempt interest income TAX-EXEMPT INTEREST 44d (S) and 92d (P) Untaxed portions of IRA, pension, and annuity distributions (withdrawals)* TOTAL IRA DISTRIBUTIONS plus TOTAL PENSIONS AND ANNUITIES minus TAXABLE IRA DISTRIBUTIONS plus TAXABLE PENSION/ANNUITY AMOUNT (exclude rollovers) 44e (S) and 92e (P) 3*If negative, enter zero.

7 2020 NASFAA . All rights (99) Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only Do not write or staple in this space. Filing Status Check only one filing jointlyMarried filing separately (MFS)Head of household (HOH)Qualifying widow(er) (QW)If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child s name if the qualifying person is a child but not your dependent. Last name Your social security number Last name Spouse s social security number Apt.

8 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 SpouseStandard DeductionSomeone can claim:You as a dependentYour spouse as a dependentSpouse itemizes on a separate return or you were a dual-status alienAge/BlindnessYou:Were born before January 2, 1955 Are blindSpouse:Was born before January 2, 1955Is blindIf more than four dependents, see instructions and here Dependents (see instructions):(2) Social security number (3) Relationship to you (4) if qualifies for (see instructions).

9 (1) First name Last name Child tax creditCredit for other dependents1 Wages, salaries, tips, etc. Attach Form(s) W-2 ..12aTax-exempt interest ..2a b Taxable interest. Attach Sch. B if required2b 3aQualified dividends ..3a b Ordinary dividends. Attach Sch. B if required3b 4aIRA distributions ..4a b Taxable amount ..4b cPensions and annuities ..4c d Taxable amount ..4d 5aSocial security benefits ..5a b Taxable amount ..5b 6 Capital gain or (loss). Attach Schedule D if required. If not required, check here.

10 67aOther income from Schedule 1, line 9 ..7abAdd lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income .. 7b8 aAdjustments to income from Schedule 1, line 22 ..8abSubtract line 8a from line 7b. This is your adjusted gross income .. 8b9 Standard deduction or itemized deductions (from Schedule A) ..Standard Deduction for Single or Married filing separately,$12,200 Married filingjointly or Qualifying widow(er), $24,400 Head of household,$18,350 If you checked any box under Standard Deduction, see business income deduction.