What tax return information do I need for FAFSA in 2025?

The FAFSA (Free Application for Federal Student Aid) requires tax return information to determine your eligibility for federal financial aid. Starting with the 2024-2025 FAFSA, the form uses IRS Direct Data Exchange (formerly the Data Retrieval Tool) to automatically import tax information.

Which tax year is used: The FAFSA uses a "prior-prior year" approach. The 2025-2026 FAFSA (for the school year starting fall 2025) uses 2023 tax return data. The 2026-2027 FAFSA will use 2024 tax return data.

Tax information needed:

• Adjusted Gross Income (AGI) from Form 1040 line 11
• Income tax paid (Form 1040 line 22)
• Untaxed income (tax-exempt interest, untaxed IRA distributions, tax-exempt portions of Social Security)
• Income earned from work (for both student and parents/spouse)
• Education credits and deductions claimed
• IRA deductions and payments to self-employed retirement plans

Using IRS Direct Data Exchange: The new FAFSA automatically transfers tax data from the IRS with the contributor's consent, using their FSA ID. This is more accurate and faster than manual entry. If the transfer fails, you can still enter information manually.

Special circumstances: If your family's financial situation has changed significantly since the tax year used (job loss, medical expenses, divorce), contact the financial aid office at your school. They can perform a professional judgment review to adjust your aid package based on current circumstances.

Filed an extension? If you filed a tax extension, you can still complete the FAFSA using estimated tax information. Update with actual figures once your return is filed.