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According to federal student aid 2016-2017 FAFSA Verification IRS tax return transcript Matrix (the guide used by the student financial office) "recomputed" amounts should be ignored.
The EFC or Expected family contribution (used to determine eligibility) is calculated by adding
- Adjusted gross income, if tax filers, or total wages
- Non-taxable income, contributions to tax-deferred pension and savings plans, IRA deductions, child support, untaxed portions of retirement distributions and other items listed on the financial aid application
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AGI per computer is the final amount as adjusted by the IRS or by your amended returns. The recomputed amount started showing up on 2015 return transcripts and it is not clear if it is just for IRS purposes or how it is exactly calculated. All financial aid instructions state to ignore the recomputed amount.
Here's a blog from a financial aid office: https://nelnetblog.com/2016/03/31/ask-a-fed-perkins-verification-and-more/
"In addition, many schools have asked me questions about the “recomputed” line items appearing on 2015 tax transcripts and how those items should be evaluated. Please note that in the 3/23/16 EA we specifically state that any line item on the IRS Tax Return Transcripts that say “RECOMPUTED <tax return item name> PER COMPUTER” should be ignored for purposes of verification."
And here's the respond from the federal student aid website (office of US department of education):
"Note that beginning with 2015 a line may appear on some IRS Tax Return Transcripts that says “RECOMPUTED <tax return item name> PER COMPUTER”. The amount on this line should be ignored for purposes of verification."
Department of education had guidelines and those guidelines are: ignore the "recomputed" amount.
I am looking at my company guidelines for amending a tax return using transcripts and it also states not to use "recomputed" or "verified" amounts. "Per computer" is what we should be using. Which means "recomputed" is not the final amount.
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The guidelines had been issued by the US department of education - student financial aid division. It is a government agency so I am pretty sure the IRS - part of the US department of treasury is aware of it.
I can only tell you what the government guidelines are and those guidelines are used by all financial offices. FAFSA is a government program so the the school financial aid office cannot just ignore it and the school cannot choose to ignore the guidelines.
It is probably the advance premium tax credit. Did you have an insurance through the marketplace? Which line is it?
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You can determine your correct AGI from the transcript. Add lines 23 through 35 and subtract the total from line 22. This will give you your correct AGI. It is your total income (line 22) minis adjustments (23 - 35).
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