Direct Data Exchange
Campus Policy: Financial Aid
FAFSA Simplified with the FUTURE Act Direct Data Exchange (FA-DDX)
What’s Changing?
Starting in the 2024-25 academic year, the FA-DDX will replace the IRS Data Retrieval Tool on the FAFSA. This tool will help transfer tax information directly from the IRS, making it simpler to fill out your FAFSA.
Why This Matters
The FA-DDX is designed to make applying for federal aid easier and quicker by reducing the number of questions you’ll need to answer. Your tax information will be automatically transferred without being shown on the FAFSA form, keeping your data private.
Important Points to Know:
- Consent is Required: You and any contributors (like parents or spouses) must give permission to share tax information with your school. This applies even if a contributor doesn’t have an SSN, didn’t file taxes, or filed taxes outside the U.S.
- Impact of No Consent: Without permission from all contributors, you won’t be eligible for federal aid.
- Secure Connection: The IRS and the Department of Education have built a secure link to process requests nearly in real-time, ensuring the safety of your data.
What Does ‘Contributor’ Mean?
A “contributor” is anyone providing information on your FAFSA, like a parent or spouse.
Key Terms Explained
- FAFSA Privacy Act Consent: You and any contributors are agreeing to share specific personal info (like SSNs) for FAFSA matching purposes.
- FAFSA FTI Approval: This allows FAFSA to retrieve and use tax information for financial aid eligibility. You must approve this every year.
Tax Info That FAFSA Collects (Federal Tax Information or FTI)
Your tax data that the FAFSA will gather includes:
- Adjusted Gross Income (AGI)
- Tax Filing Status
- Income earned from work, among other details If some information isn’t available from the FA-DDX or doesn’t reflect your current situation, you may need to enter it manually.
Your Data is Secure
For added privacy and security, you and your contributors will not be able to view or edit the imported tax information on the FAFSA. Financial Aid offices can access this information to calculate your eligibility.
Remember
Consent and approval from you and any contributors are required once each year to keep receiving federal aid. The consent is only valid for that FAFSA cycle (e.g., 2024-25) and can’t be revoked once given.
For more detailed information, reach out to our school’s Financial Aid Office or consult FAFSA resources for updates.
If you are unable to use the IRS Direct Data Exchange tool, you can order your Tax Return Transcript through the IRS Web site at: irs.gov/Individuals/Get-Transcript.
If you are having problems ordering your transcript online, you may contact the IRS at 1-800-908-9946 to order a Return Transcript by phone. You may also visit the Honolulu IRS Office at 300 Ala Moana Blvd or the IRS office nearest you.
Tax Transcripts
The quickest way to obtain your transcript is online. However, if online registration isn’t possible, you can request to have a tax return or tax account transcript mailed to you.
Alternative Options
If online access isn’t available, you can receive your transcript by mail. Here’s how:
What You Need
- The mailing address from your most recent tax return
What You’ll Get
- Tax return or tax account transcript types delivered by mail
- Transcripts typically arrive within 5 to 10 calendar days at the address on file
You can also request a mailed transcript through our automated phone service by calling 800-908-9946.
Non-Tax Filer: What to Do and What You Need for FAFSA:
If you earned income in a foreign country or worked for an international organization (e.g., World Bank, United Nations, IMF) and weren’t required to file a U.S. tax return, use the guidelines below to complete your FAFSA form in U.S. dollars.
If you are a non-U.S. tax filer, you’ll need to manually enter financial information from your most recent tax return when completing the Free Application for Federal Student Aid (FAFSA®).
Guidance for Non-U.S. and U.S. Territory Tax Filers
- U.S. Territory Residents: If you live in a U.S. territory and filed a 2022 U.S. tax return and/or a tax return with your territory’s tax authority, follow FAFSA’s instructions to accurately enter your financial information.
- Foreign Tax Filers: If you filed or plan to file a foreign tax return, use this same return to complete the FAFSA form. Note that foreign tax returns may not have a specific “Adjusted Gross Income (AGI)” line. Instead, identify and use the equivalent sections on your foreign return that show all income sources, such as wages, dividends, capital gains, business income, retirement distributions, and other income, minus any allowable adjustments.
Ensure all income amounts are converted to U.S. dollars using the published exchange rate closest to the date you complete your FAFSA form.