Publication Date: September 4, 2003
Author: General Manager: FSA Students Channel
Summary: CPS Edits on Income From Worksheet C
Posted on 09-04-2003
To: All Destination Points
From: Federal Student Aid
Department of Education
Date: September 4, 2003
Re: CPS Edits on Income From Worksheet C
There has been some chatter on finaid_l concerning, what some have called a ‘bug’ in the Department’s editing of FAFSA data when the amount of income exclusions reported on Worksheet C of the FAFSA is compared to the total income reported. We want to make clear that the treatment of such cases (as described more fully below) is not a ‘bug’ but is an intentional response to such reporting that is intended to address instances where the amount reported on Worksheet C may be in error. Note that while adjusted slightly this year, this treatment is not new for 2003-2004 FAFSA processing and has been included in the CPS edits for several years. More importantly, as described below, the applicant, or the school on the applicant’s behalf can override the assumption that the CPS makes to reduce the Worksheet C exclusion to zero. While it is true that there are some instances where the Worksheet C income exclusion amount can equal, or be close to, the amount of total income (e.g. an applicant’s only income is from FWS), it is our belief that it is more likely an error has been made in completing the application.
Worksheet C Assumption Edit:
When the Worksheet C amount is equal to or exceeds 90% of the total income for parents, or 100% of the total income for students, a correctable assumption is made that an error has been reported and the amount for Worksheet C is set to zero. Total income is defined as the total of AGI (or Income Earned from Work for non-tax filers), Worksheet A, and Worksheet B.
Override Processes:
The Worksheet C assumption can be overridden in several ways. If the FAA, when submitting FAFSA data using EDExpress or FAA Access to CPS, is aware that the reported amounts are correct, an electronic assumption override code on the application or correction record can be set which will suppress the assumption and the data will not be changed when the record is processed by the CPS. This is assumption override code 5 for parents and code 6 for students.
If an applicant is completing their application or correction on the Web and enters data that hits the edit, a drop down box will appear asking the student to verify or correct the information they are reporting. If the student verifies the information, the assumption will be suppressed and the data will not be changed when the record is processed.
If the applicant’s record has already been processed and the assumption that was made is incorrect, the applicant can use their SAR or submit a correction via the Web to verify the original information they reported. This verification will suppress the assumption and a new transaction that uses the originally reported data will be created at the CPS.
If you have any questions, please contact CPS/WAN Technical Support at 800/330-5947 or via e-mail at CPSWAN@NCS.COM.