How does the system know what is a qualifying tuition and related expense (QTRE)?

Box 1 calculates all payments that are attached to charges that are eligible for 1098T reporting.  When you build your Item Types for charges you check the 1098-T Eligible box on the Amounts Edits tab if the charge is reportable.  The system will pick up all payments attached to these eligible charges.

How does the system know which payments to look at that paid QTRE?

The system looks at item types classified as payments that:

1. Applied to a charge item type that is flagged as 1098T eligible.
2. Was not reported on a previous 1098T.
3. Has a posted date that falls in the range of 01/01-12/31 for that 1098T calendar year.

What about loans? Shouldn’t they be showing up in box 1?

Yes, loans should be part of the box 1 calculation.  These would need to be excluded from your 1098T tree that the FinAid Group looks at on your TIN setup.

How do refunds get reported?

Refunds for the current 1098T calendar year will reduced from box 1 and box 5 if it is a financial refund.  What about for prior year refunds? See below for Box 4 Q&A.

Box 2 Amounts Bill Method is not used by SBCTC colleges.

What about Box 4, how does that get populated?

Peoplesoft will look at the prior year 1098T table and the refund table. If a payment was applied to a prior year QTRE and generates a refund, then the amount will show up here.

Shouldn’t Third Party payments be included in Box 5?

Yes, any third party that pays for QTRE should show up in Box 5 if your college keeps a separate account for the third party.  These item types should be included your 1098T tree that the FinAid Group looks at on your TIN Setup. If a Third Party payment is missing, please let ERP Support know by logging a help desk ticket.

Why is Box 5 showing amounts for non-qualifying tuition and related expenses?

Box 5 shows all grant aid that goes toward cost of attendance. Grant aid that can pay QTRE is reported in both box 1 and box 5. Aid that is restricted to nonqualified expenses is reported only in box 5.

Box 5 is greater than box 1.  Why is the student receiving a 1098T?

SBCTC recommends sending a 1098T to students that have box 5 greater than box 1 as they can use it to show proof of enrollment even if the student may not benefit from using it for their taxes.

This student paid QTRE out of pocket but they don’t have a 1098T?

Look at the Review 1098T Messages page.  This will let you know why a student didn’t get a 1098T generated.

This student was enrolled during the 1098T calendar year but they still didn’t get a 1098T?

PeopleSoft looks at how the academic load is set up for your institution.  It will look for anyone that is Half-time, Three-Quarter time, or Full time.  Contact your enrollment services department about the credit levels for these academic load values.  Most schools have half-time to be considered 6 credits. A student with the “Not eligible for 1098T  Enrollment” message does not meet these academic load levels and therefore the system is not generating a 1098T. You can force a 1098T for this student if they request it. Note: If the student receives no grade or 0.0 for their classes, no 1098T will be generated and the error message will be enrollment related.

This student has a 1098T but they are not in any eligible classes.

The delivered functionality is looking at the student’s enrollment information to see if they are in the above mentioned academic loads; along with, units taken that are greater than zero and if the class is considered as earned credit.  If you believe a certain class is not eligible based on the mentioned parameters, you will need to contact the course/class builders to find out why the class was set up to be earning credit and count towards units taken.  If they are unable to answer why, please log a ticket with our ERP Support team.

The file I transmitted to the IRS is BAD, what do I do?

If you need to resubmit your file to the IRS and have a good file to send - first call the IRS and have them change the already loaded/released file to bad (can take up to 48 hours.)  Once the file is noted as bad, you can resubmit the new file as replacement.

Any further questions on how Peoplesoft creates 1098Ts for ctcLink, please log a ticket with our ERP Support Team.

QCS_SF_1098T_LATEST_STATUS - provides the latest 1098-T student data and includes the status pertaining to the Auditing and Validating steps.

Note: A temporary image of the Validation Status field values is below for reference.

QCS_SF_1098_NO_CONSENT - no electronic consent 1098-T

QCS_SF_1098T_BOX_TRANSACTIONS - 1098T Boxes Transactions

QCS_SF_1098T_ELECT_CONSENT - Stdnts granted 1098T elec perm

QCS_SF_1098T_ITEM_TYPE_CHRG

QCS_SF_1098T_REPORT - Shows a line by line list of students with created 1098T reports (RUN IN SCHEDULE QUERY)

QCS_SF_INBOX5_1098SETUP

Looking ahead for 2022 annual reporting:

If you have not gotten your college’s FIRE account through the IRS we recommend you begin that process as soon as possible.  You will need an account for your college in order to upload annual tax files to the IRS website.  We have heard that it can take anywhere from weeks to months to get an account set-up.  Starting early is highly recommended.

Here is a link to setting up an account. https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire

Below is a summary of the annual tax process that will require you to use your FIRE account:

1098T:

You will need a FIRE account to do the following task:  

Colleges are responsible for filing the 1098T electronic file for their college to the IRS.  The due date is currently the end of March but could always be subject to change by the IRS.

1099M, 1099NEC:

You will need a FIRE account to do the following task:

Colleges are responsible for filing the electronic 1099M/NEC file for their college to the IRS if they so choose.  Those colleges generating more than 250 forms must file electronically. The due date is currently the end of March but could always be subject to change by the IRS.  

Be sure you are a member of the ctcLink Listservs so you do not miss any of the messaging that is sent out each fall in regards to these processes.  

Notes:

Questions about creating/maintaining your colleges FIRE account need to go to the IRS.  SBCTC is not able to assist colleges with that process.

Questions regarding these processes can be found in the QRG depository or by creating a ticket via SolarWinds and sending it to:

Student Finance ERP (1098T)

Finance ERP (1099Ms)

The process for filing the W2 electronic file is done for the system by SBCTC.  No college actions required.

Navigation: NavBar > Navigator > Student Financials > Taxes > Review 1098-T Messages

1. The Review 1098-T Messages search page displays.
2. Enter or Search the ID.
3. Enter or Search your Federal TIN.
4. Enter of Search the Calendar Year.
5. Select Search.

6. The Review 1098-T Messages page displays.

7. Process complete.

Navigation: NavBar > Navigator > Student Financials > Taxes > Edit 1098-T Data