[Oasfaa] 2008 Simple Needs Test Chart

Mc Conahay, Pamela K. pmcconahay at ou.edu
Fri Apr 17 18:26:51 CDT 2009

Yes, I finally got it finished, it's attached.  I can't announce it on Finaid-L until it is posted to the web because Finaid-L doesn't allow attachments.  But feel free to share it with anyone else that you think would find it helpful.

Pam McConahay
Associate Director, University of Oklahoma Financial Aid Services
1000 Asp Ave, Room 216, Norman, OK 73019-4078
(405) 325-4617  Fax (405) 325-3657
pmcconahay at ou.edu

Each year, I prepare a chart to help financial aid administrators determine if a person who filed a 1040 was actually eligible to file a 1040A or 1040EZ.  The purpose of the chart is to help you and your applicants accurately answer Questions 34 and 88 on the FAFSA.   3/17/06:  I've prepared the chart for use with 2008 tax returns.
 A couple of reminders:

NEEDS TEST.  It simply helps you determine ONE eligibility factor, whether the person was eligible to file a 1040A or EZ.  The requirements to be eligible for the Simple Needs Test or Automatic Zero EFC are shown at the bottom of the page.

b)  The AGI limit for filing a 1040A or EZ went up to $100,000 a couple of years ago.  That did NOT change the ED requirement that the AGI be less than $50,000 to qualify for the Simplified Needs Test.

A few new things for the 2008 chart:

a)  Line 13 Capital Gain or Loss---I noted that if the taxpayer indicated he was not required to file Schedule D, you can ignore the income on this line when determining if he was eligible to file a 1040A/EZ.  This is to be consistent with the FAFSA instructions for questions 34/84.

b) Eligibility for the Simplified Needs Test was expanded to students and parents who received benefits from a "means-tested Federal benefit program" (examples include programs such as SSI, Food  Stamps, School Lunch, TANF, special nutrition program for women, infants and children, or other programs identified by the Secretary).    In 2008-2009, it was for those who received those benefits in the prior calendar year (the base income year being reported on the FAFSA).  For 2009-2010, it has been expanded to include anyone who has received those benefits within the last TWO calendar years, 2007 and 2009.

c)  EfFective for 2009-2010, a parent being considered a dislocated worker is also grounds for being eligible for the Simple Needs Test.

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