How to Answer FAFSA Question #35: Schedule 1 (Form 1040)”

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35. Did (or will) you file a Schedule 1 with your 2019 tax Return? Answer “No’ if you did not file a Schedule 1 or only filed a Schedule 1 to report unemployment compensation, educator, expenses, IRA deduction, student loan interest deduction, Alaska Permanent Fund dividend or virtual currency. See Notes page 9.
  • Yes
  • No
  • I Don't Know

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Application Deadline: October 31, 2020

Why are they asking this information?

This question aims to determine if the student’s parents are/were eligible to file a 1040A or 1040EZ by examining the following factors:

  • Make less than $100,000
  • Do not itemize deductions
  • Do not receive income from a business or farm
  • Do not receive self-employment income or alimony
  • Are not required to file Schedule D for capital gains.

How to answer this question / fill out this section

You are to indicate “Yes” if it is determined that your parents could have filed one of these two forms, even if they hadn’t. The general differences between the use of the 1040, the 1040A, and the 1040EZ has to do with the amount of information within the tax return. The 1040A and 1040EZ help to make filing your tax return simpler.

Answer “No” if you (and if married, your spouse) did or will file a Schedule 1 to report
only one or more of the following items:

  1. Unemployment compensation (line 7)
  2. Other income to report an Alaska Permanent Fund dividend (line 8 – may not be a
    negative value)
  3. Educator expenses (line 10)
  4. IRA deduction (line 19)
  5. Student loan interest deduction (line 20)
  6. Receiving, selling, sending, exchanging, or otherwise acquiring any financial interest
    in any virtual currency