How to Add Parent Information on FAFSA

The Free Application for Federal Student Aid (FAFSA) is a form for students seeking financial assistance for higher education. For dependent students, providing accurate parental information on the FAFSA is necessary to determine eligibility for federal, state, and institutional aid. This information helps create a comprehensive picture of the family’s financial strength, used to calculate the Student Aid Index (SAI), formerly known as the Expected Family Contribution (EFC). The SAI helps schools assess a student’s financial need.

Identifying FAFSA Parents

The definition of a “parent” for FAFSA purposes may differ from common understanding. A legal parent includes biological or adoptive parents, or an individual determined by the state to be a legal parent, such as someone listed on a birth certificate. If parents are married, both parents’ information must be included. If parents are unmarried but live together, both parents are considered contributors and must provide their information.

For divorced or separated parents who do not live together, the parent who provided more financial support to the student during the last 12 months is the required contributor. If both parents provided equal financial support, or if neither provides financial support, the parent with the greater income and assets should complete the FAFSA. If the parent completing the FAFSA has remarried, the stepparent’s income and assets must also be included, regardless of any prenuptial agreements.

Individuals such as grandparents, foster parents, legal guardians, aunts, or uncles are not considered parents for FAFSA purposes unless they have legally adopted the student. Students under legal guardianship are considered independent students and are not required to provide parent information. Any financial support provided by these non-parent relatives or guardians to the student should be reported as untaxed income for the student.

Required Parent Financial Details

Completion of the FAFSA requires specific financial information from the identified parent(s). Key financial data points include Adjusted Gross Income (AGI) and income earned from work, found on federal income tax returns like IRS Form 1040 and W-2 forms. Untaxed income must also be reported, which can include child support received, untaxed portions of pensions and IRA distributions, and other benefits not subject to federal income tax.

Parents need to provide details on their current cash, savings, and checking account balances. The net worth of investments, such as stocks, bonds, mutual funds, and real estate (excluding the primary residence), must be reported. The net worth of any businesses or farms owned by the parents is also required, without the previous limitation for businesses with fewer than 100 employees. Having these documents readily available, including tax returns, bank statements, and investment statements, simplifies the FAFSA completion process.

Providing Parent Information on the FAFSA

Parents contributing to the FAFSA must obtain a Federal Student Aid (FSA) ID to access and electronically sign the application. The FSA ID serves as a unique username and password, linked to the parent’s Social Security Number (SSN). This ID is for electronic signature and ensures the integrity of the submitted financial aid application.

When completing the FAFSA online, the IRS Direct Data Exchange (DDX), formerly known as the IRS Data Retrieval Tool, is the recommended method for transferring tax information. This tool securely imports federal tax data directly from the IRS, enhancing accuracy and efficiency. If the DDX cannot be used, or for non-tax data like asset balances and untaxed income, information must be entered manually into the FAFSA form. After all information is entered, parents must review the application for accuracy and electronically sign it using their FSA ID to ensure the FAFSA is fully processed and the Student Aid Index (SAI) is calculated.

Addressing Unique Parent Scenarios

For parents without a Social Security Number (SSN), they cannot obtain an FSA ID. In such cases, the FAFSA allows for the entry of “000-00-0000” in place of an SSN, and a signature page must be printed, signed, and mailed to complete the application. An Individual Taxpayer Identification Number (ITIN) should not be entered in the SSN field.

Parents who do not file income taxes will need to provide alternative documentation to verify their income, such as W-2 forms, pay stubs, or other income statements. A signed statement confirming non-filing may also be necessary. For parents living outside the U.S., their financial information, including income and assets, must be converted to U.S. dollars. While their citizenship status does not affect the student’s eligibility for federal aid, they will still need to provide their financial details. If a parent is unable to provide an electronic signature, they will need to use the manual signature page process.