What tax forms are required for FAFSA?

I'm currently prepping for my FAFSA application and realized that taxes play a big role in it. I want to make sure I have all the necessary tax documents on hand so the process goes smoothly. Could anyone clarify which tax forms are required for the FAFSA? Also, is there anything specific I should know about these forms to prevent any hiccups while filling out the application? Any advice would be much appreciated, especially as I navigate this somewhat confusing process!

Filling out the FAFSA can indeed seem quite complex, so it's great that you're planning to be well-prepared. Typically, the FAFSA process will require the following forms:

1) Your Federal Tax Return: This is the main form you'll need. If you're a dependent student, you'll need your parents' tax returns as well.

2) W-2 Forms: These provide proof of earnings. You'll need your own and your parents' W-2 forms if you're a dependent student.

3) Other Income Information: You'll need documentation for any untaxed income, such as child support received, interest income, and veterans' noneducation benefits.

4) Business and Investment Records: If you or your parents have investments or owned a business, relevant records could be required, including balance sheets or business tax returns.

To clarify, because of a recent FAFSA change, you will be using tax information from two years before the academic year for which you are applying, this is often referred to as the 'prior-prior year' tax returns.

The FAFSA website has a tool called the IRS Data Retrieval Tool which can help streamline the tax reporting process. It securely transfers data directly from the IRS onto your FAFSA form, which can help both with accuracy and speed.

Remember that the process of filling out your FAFSA can be a little bit tricky, but it's manageable. Break it down step by step, double-check all your entries and you'll get through it just fine. Good luck!