The ABCs of Verification

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The ABCs of Verification
Gale Labb
Weber Associates Inc.
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Expected Family Contribution (EFC)

• What is it?
• The EFC is the official amount (established
  through congressional federal methodology), the
  family is expected to contribute toward the
  students total cost of educational and living
  expenses for the year.
• How is the EFC Determined?
• The EFC is determined by all data elements
  submitted on the FAFSA.

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Verification

• Applications are randomly selected by CPS
  (Central Processing Center) or by the school.
  Usually verification is a result of errors on the
  initial application or conflicting information.

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POLICIESFOR VERIFICATION
DEADLINES UPDATES TO AWARDS HOW YOUR SCHOOL
CHOOSES RECEIPANTS
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Verification

• In most instances verification can be completed
  with a copy of the federal tax return and a
  completed verification worksheet.

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Tax Information

• Who is required to file a Tax Return
• What an Individuals correct Tax Filing Status
  should be
• An Individual cannot be claimed as an exemption
  by more than one person
• Head of Household Requirements

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Who Must File?
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Who Must File?
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Forms to Complete Verification

• Federal Tax Return
• Signature Required
• Items to be Verified
• AGI (Adjusted Gross Income)
• Taxes Paid
• Business Income
• Investment Income
• Education Credits
• Earned Income Credit
• Additional Child Tax Credit

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Verification

• Items to be verified include, but are not limited
  to
• Household Size
• Number in College
• Adjusted Gross Income (AGI)
• U.S. Taxes paid
• Certain types of untaxed income and benefits
• Social Security Benefits
• Child Support paid and received
• IRA/Keogh deductions
• Earned Income Credit
• Interest on tax-free bonds

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Forms to Complete Verification

• (Continued from previous slide)
• Untaxed income sources
• IRA/Keogh deductions
• Untaxed Social Security Benefits
• Untaxed Pension and Annuities
• Self Employed SEP, SIMPLE, and qualified plans
• Interest on tax-free bonds

Worksheet ABC
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1040
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1040
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1040A
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1040A
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1040EZ
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1040EZ
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Forms to Complete Verification

• Verification Worksheet
• Items required
• Signatures required

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Zero Income on Application

• Zero income will unlikely require verification
  either by CPS (Central Processing Center) or by
  the school. In all circumstances you should
  require additional documentation as to how the
  student lived on zero income for the base year.

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Zero Income on Application

• Items to request may consist but is not limited
  to the following
• Any cash support on behalf of the student such
  as
• Car payments paid
• Car insurance paid
• Medical expenses
• Any miscellaneous items paid on students behalf
• Any work that was paid in cash and is not
  reported on W-2 form

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Survival Statement (English)

• SURVIVAL STATEMENT
• PLEASE FILL IN THE AREA OR AREAS THAT APPLY
• I WAS SUPPORTED BY
• 1. FRIENDS AND RELATIVES DURING THIS YEAR AND DID
  NOT WORK.
• THE AMOUNT RECEIVED WAS -----------------,
  WHICH I HAVE PLACED ON WORK SHEET A OR B .
• 2. I HAVE JUST ARRIVED IN THIS COUNTRY, AND HAD
  NO INCOME. I AM LIVING ON WELFARE BENEFITS, WHICH
  I HAVE PLACED ON THE WORKSHEETS.
• 3. I LIVE IN A SHELTER AND AM ONLY PROVIDED ROOM
  AND BOARD.
• 4. I AM NEWLY DIVORCED AND WAS SUPPORTED BY MY
  SPOUSE LAST YEAR.
• NAME _____________________________________________
  ____
• SOCIAL SECURITY __________________________________
  ___
• AWARD YEAR ______________________________________
  ____

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Survival Statement (Spanish)
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Sources of Conflicting Information

• Admissions Application
• External Sources
• Other Institutions
• Information from Student
• Scholarships
• Another Office within Institution
• SAR or ISIR

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What Constitutes Resolution of Conflicting
Information?

• Determining what is correct with documentation
• Resolve the conflict expediently
• Do not disburse aid or make additional
  disbursements until the conflict is resolved
• Dig Deeper if Fraud is Suspected!!!

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Non-Conflicting Information

• What is NOT Conflicting Information
• Household size differs from tax exemptions
• Dependent under IRS rule vs. DOE definition
• Privacy protected information
• Assumptions by CPS

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Webers form for rejection of verification
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Webers form for rejection of verification
-Contined
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See Below
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