The United States Department of Education (USDE) and Community College of Allegheny County (CCAC) reserve the right to select your Free Application for Federal Student Aid (FAFSA) for a review process referred to as "verification." If your application is selected, you are required to submit to the Financial Aid Department certain information: IRS Tax Return Transcripts, Wage Statements, Proof of Non-filing Statements and documentation of untaxed income and benefits; and a completed federal Verification Worksheet found on the CCAC Finnancial Aid Forms page.
If your application is selected for verification, you will be notified by the Financial Aid Department either via a Document Tracking Letter or online through your CCAC Central account and under "missing documents", of the required documents necessary to complete the process. CCAC is required to complete this process prior to certifying student loans or disbursing aid funds to a student's account.
Failure to complete the verification process within fourteen days of the initial request may result in the cancellation of aid and the termination of enrollment. If corrections are necessary, we will make them electronically on the student's FAFSA once we have completed the verification process. The student will then receive a revision from the federal processor. If any further action is needed, we will notify the student of the steps necessary to complete the process.
Foreign Income and Tax Returns
Foreign Income. If a U.S. tax filer earns foreign income, a portion of that income
can be excluded from taxable income. The excluded portion should be reported as untaxed
income on the FAFSA, while the remainder is part of the AGI. (The amount of foreign
income that was excluded should be verified using IRS Form 2555 or 2555EZ.)
If the applicant (or the applicant s parents) earned foreign income and paid taxes to a central foreign government, the income and taxes paid should be treated the same as U.S. income and taxes paid. Information from the foreign tax return would be reported on the FAFSA and for verification purposes, the foreign return would be considered equivalent to an IRS Form 1040.
If the applicant (or the applicant s parents) earned foreign income but did not pay any taxes on that income, it should be reported as untaxed income.
In all cases involving foreign income, the value of the foreign income and taxes must be reported in U.S. dollars, using the exchange rate at the time of application. The campus financial aid offices can only accept foreign tax returns that have been converted into US Dollars.