2011-2012 EditionJim Briggs

The Tax Detective© 2011 Jim Briggs

What we will cover today

◦ Federal Verification

◦ Federal Conflicting Information rules

◦ Federal Taxes

◦ Ways to resolve conflicts

Title IV requirements:◦ Review and resolve all conflicting information in

the students file

◦ Perform required federal verification

◦ Select additional students for verification as appropriate

< 24 years of age Required to submit student and parent

financial data If parents divorced or separated:

◦ Financial data of custodial parent Parent student lived with most during 12 months

preceding month in which the FAFSA was filed If tie – then parent who provided more financial

support

Treated as if divorced or separated

Only use custodial parent data

Consider untaxed income from non-custodial for contributions to student

No parental financial data required:◦ To qualify student must meet one of the following:

Have bachelors degree Be married Be a veteran or on active duty Have a dependent other than a spouse:

Provide > 50% of support Be or have been an orphan or ward of court at any

time since 13 years of age Be an emancipated minor in home state Be homeless or at risk of being homeless

If someone is required to file a federal tax return

What the correct filing status should be

That an individual may not be claimed as a dependent by more than one person

Determined on December 31st each year:◦ Single◦ Married filing Jointly◦ Married filing Separately◦ Head of Household◦ Qualifying widow or widower

IRS Publication 17 is a good resource

IRS Forms: http://www.irs.gov/app/picklist/list/formsInstructions.html

IFAP: http://ifap.ed.gov/ifap/Military Pay: http://www.dfas.milReal estate value: http://www.zillow.comStocks,bonds,etc: http://finance.yahoo.com

Questions?

Thank you

Jim Briggs

jbriggs@thetaxdetective.com