(1) Eligibility An applicant is eligible to file a simplified form containing the elements required by paragraph (2) if
(A) in the case of an applicant who is a dependent
student
(i) the students parents
(I) file, or are eligible to file, a form described in paragraph (3);
(II) certify that the parents are not required to file a Federal income tax return; or
(III) received, or the
student received, benefits at some time during the previous 12-month period under a means-tested Federal benefit program as defined under subsection (d); and
(ii) the total adjusted gross income of the parents (excluding any income of the dependent
student) is less than $50,000; or
(B) in the case of an applicant who is an independent
student
(i) the
student (and the students spouse, if any)
(I) files, or is eligible to file, a form described in paragraph (3);
(II) certifies that the
student (and the students spouse, if any) is not required to file a Federal income tax return; or
(III) received benefits at some time during the previous 12-month period under a means-tested Federal benefit program as defined under subsection (d); and
(ii) the adjusted gross income of the
student (and the students spouse, if any) is less than $50,000.
(2) Simplified test elements The six elements to be used for the simplified needs analysis are
(A) adjusted gross income,
(B) Federal taxes paid,
(C) untaxed income and benefits,
(D) the number of family members,
(E) the number of family members in postsecondary education, and
(F) an allowance (A) for State and other taxes, as defined in section
1087oo (c)(2) of this title for dependent students and in section
1087qq (b)(2) of this title for independent students with dependents other than a spouse, or (B) for State and other income taxes, as defined in section
1087pp (b)(2) of this title for independent students without dependents other than a spouse.
(3) Qualifying forms In the case of an independent
student, the
student, or in the case of a dependent
student, the family, files a form described in this subsection, or subsection (c), as the case may be, if the
student or family, as appropriate, files
(A) a form
1040A or
1040EZ (including any prepared or electronic version of such form) required pursuant to title 26;
(B) a form
1040 (including any prepared or electronic version of such form) required pursuant to title 26, except that such form shall be considered a qualifying form only if the
student or family files such form in order to take a tax credit under section
25A of title
26, and would otherwise be eligible to file a form described in subparagraph (A); or
(C) an income tax return (including any prepared or electronic version of such return) required pursuant to the tax code of the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or Palau.
