; and (ii) in the case of an individual who filed a Federal tax return or in the case of an individual who filed a foreign tax return in lieu of a Federal tax return, adjusted gross income from applicable schedule plus untaxed income and benefits for the second preceding fiscal tax year minus excludable income (as defined in subsection (e)). (B) Use of data Notwithstanding section 478(a), the Secretary shall provide for the use of data from the second preceding tax year when and to the extent necessary to carry out the simplification of applications (including simplification for a subset of applications) used for the estimation and determination of financial aid eligibility. Such simplification shall include the sharing of data between the Internal Revenue Service and the Department, pursuant to the consent of the taxpayer. . (b) Conforming amendment Section 480(a) ( 20 U.S.C. 1087vv(a) ) is amended— (1) by moving paragraph (2) two ems to the right; and (2) in paragraph (2), by striking No portion and inserting the following: Amounts not included .—No portion . (c) Untaxed income and benefits Section 480(b) ( 20 U.S.C. 1087vv(b) ) is amended to read as follows: (b) Untaxed income and benefits The term untaxed income and benefits means— (1) the aggregate amount of losses taken into account for determining adjusted gross income on Federal form 1040 and applicable schedules; (2) the amount of any tax-exempt interest income reported on Federal form 1040; and (3) amounts of foreign income excluded from adjusted gross income and reported on Federal form 2555. . (d) Excludable income Section 480(e) ( 20 U.S.C. 1087vv(e) ) is amended to read as follows: (e) The term excludable income means— (1) any student financial assistance awarded based on need as determined in accordance with the provisions of this part, including any income earned from work under part C of this title