Use	one	of	the	following	methods	to	figure	the	individual9s	taxes	paid:
Tax	table	(preferred	method).	Using	the	IRS	Tax	Table	or	Tax	Rate	Schedule	for	the	appropriate	year,	calculate
the	amount	of	tax	that	would	have	been	paid	if	a	separate	return	had	been	filed.	Use	the	deductions	the	individual
could	have	claimed	if	the	individual	had	filed	a	separate	return.	(If	itemized	deductions	were	taken,	count	only	the
portion	of	those	deductions	that	could	have	been	claimed	on	a	separate	tax	return.)
Proportional	distribution.	Determine	what	percentage	of	the	joint	AGI	was	attributable	to	the	individual,	and	then
assess	the	joint	taxes	paid	by	that	same	percentage.
Individuals	With	Filing	Extensions
The	IRS	may	grant	a	filing	extension	(beyond	the	automatic	six-month	extension)	to	an	individual	required	to	file	a	2023
IRS	income	tax	return.	For	an	individual	who	receives	such	a	filing	extension,	the	student	must	submit	the	following:
A	signed	statement	listing	the	sources	of	any	2023	income	and	the	amount	of	income	from	each	source;
A	copy	of	the	IRS's	approval	of	an	extension	beyond	the	automatic	six-month	extension	for	tax	year	2023;)
A	copy	of	IRS	Form	W-2	for	each	source	of	2023	employment	income	received	or	an	equivalent	document;	and
If	self-employed,	the	signed	statement	must	indicate	the	amount	of	estimated	AGI	and	U.S.	income	tax	paid	for	tax
year	2023.
You	may	require	individuals	with	a	filing	extension	to	provide	final	income	information	to	you	after	the	return	has	been
filed.	If	you	do	that,	you	must	reverify	the	income	information.	If	the	student	does	not	provide	final	income	information,
see	the	guidance	described	under	the	<Deadlines	and	Failure	to	Submit	Documentation=	section	later	in	this	chapter	on
failing	to	complete	verification.	See	DOC-Q16	on	the	Program	Integrity	Questions	and	Answers	3	Verification.
For	a	person	called	up	for	active	duty	or	qualifying	National	Guard	duty	during	a	war,	another	military	operation,	or	a
national	emergency,	a	school	must	accept	a	statement	from	the	person	certifying	that	they	have	not	filed	an	income	tax
return	or	a	request	for	a	filing	extension	because	of	that	service.
Filers	of	Amended	Returns
Separating	a	Joint	Return	Example
AVG,	Chapter	4,	Example	2:	A	student9s	application	is	selected	for	verification.	The	student	filed	joint	return
with	their	spouse	in	2023	but	have	now	divorced.	The	AGI	on	the	student9s	FAFSA	matches	the	AGI	of	$56,500	on
the	2023	tax	return,	which	means	it9s	wrong	because	it	includes	the	student9s	former	spouse's	income.
The	student9s	W-2	shows	that	their	income	for	2023	was	$25,900,	and	the	tax	return	shows	$400	in	interest.
Because	it	was	interest	on	a	joint	savings	account,	the	aid	administrator	adds	$200	of	it	to	the	student9s	income
and	submits	$26,100	as	the	corrected	income.
The	aid	administrator	then	determines	that	if	the	student	had	filed	their	tax	return	as	single	in	2023,	their
standard	deduction	would	have	been	$13,850	(instead	of	$27,700	for	married	filers).	The	student9s	income	of
$26,100	minus	$13,850	for	the	standard	deduction	results	in	$12,250	in	taxable	income.
The	aid	administrator	uses	the	2023	tax	table	to	determine	how	much	tax	the	student	would	have	paid	on	this
amount,	considering	any	applicable	credits	reported	on	the	original	return.	With	a	taxable	income	of	$12,250,	the
tax	amount	from	the	tax	schedule	is	$1,253.
To	use	the	proportional	distribution	method	instead,	the	aid	administrator	figures	out	what	percentage	of	the	joint
AGI	student9s	income	represents.	The	percentage	is	46%	(26,100	÷	56,500	is	.4619).	The	aid	administrator	then
multiplies	the	income	tax	paid	as	reported	on	the	tax	return	($3,019	for	this	example)	by	this	percentage.	The
student9s	income	tax	by	using	this	method	is	$1,394	(.46	x	$3,019).
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