What Federal Tax Information Is Retrieved Using the FUTURE Act Direct Data Exchange?

Award Year: 2024-25 KA-36802 Helpfulness Rating 384 page views

This guidance is specific to the 2024-25 award year and later.

Beginning with the 2024-25 award year, the Fostering Undergraduate Talent by Unlocking Resources for Education Act (FUTURE Act) allows FAFSA contributors to consent to the disclosure and use of their IRS federal tax information (FTI) for the purpose of determining a student's eligibility for Title IV federal student aid. The May 12, 2023 Electronic Announcement (GENERAL-23-34) provides the following list of what is considered FTI. This FTI data will be retrieved by the U.S. Department of Education (ED) using the FUTURE Act Direct Data Exchange (FA-DDX) to populate the FAFSA starting with the 2024-25 award year:

  • Tax year (e.g., award year 2024-25 is based on 2022 tax year information from the IRS);
  • Tax filing status;
  • Adjusted gross income (AGI);
  • Number of dependents;
  • Income earned from work;
  • Taxes paid;
  • Education tax credits;
  • Untaxed IRA distributions;
  • Untaxed pension and annuity distributions;
  • IRA deductions and payments;
  • Tax-exempt interest;
  • Schedule C net profit/loss;
  • Indicators for Schedules A, B, D, E, F, H; and
  • IRS response code.

In addition, the ISIR will also include an IRS response code that indicates the status of the tax filer/FTI with the IRS to include one of the following:

Notice that the Foreign Earned Income Exclusion is not retrieved using the FA-DDX. See AskRegs Knowledgebase Q&A, Why Isn't the Foreign Earned Income Exclusion Transferred Into the FAFSA Using the FA-DDX? (Award Year: 2024-25) 

Student Aid Reference Desk: For additional information, try the Student Aid Reference Desk. It is a central hub of all the important financial aid resources you need with direct links to legislation, regulation, Dear Colleague Letters, and other ED and NASFAA references. It is updated on a rolling basis with the latest news and changes. Search Verification.

AskRegs Q&As represent NASFAA's understanding of regulatory and compliance issues. They are FOR INTERNAL USE ONLY. While NASFAA believes AskRegs Q&As are accurate and factual, they have not been reviewed or approved by the U.S. Department of Education (ED). If you should need written confirmation of AskRegs information for audit or program review purposes, please contact your ED School Participation Division. NASFAA shall not be liable for technical or editorial errors or omissions contained herein; nor for incidental or consequential damages resulting from the furnishing, performance, or use of this material.

Join NASFAA

Join NASFAA and receive full member access to the AskRegs Knowledgebase and question services.

© 2023 NASFAA. All rights reserved.