1098-T Prior Year Processing

Purpose: Use the below document for processing prior-year 1098-T's.

Audience: Student Financials Staff

You must have at least one of these local college managed security roles:

  • ZZ SF Taxes 1098T

If you need assistance with the above security roles, please contact your local college supervisor or IT Admin to request role access.

Issue:

When activity to a prior calendar year takes place, and a prior year 1098-T has not already been generated, it causes an inaccurate current year 1098-T. 

A student is ineligible for a 1098-T for year 2024, so one is not created. 

The following year, in 2025, changes are made to the student’s account for the prior 2024 tax year. This causes a 2025 1098-T to be created with inaccurate amounts in Box 1 and 5. 

State Board Scheduled Processing:

In early September, the SF Support Team will generate 1098-T's for all students for 2024 and then set the newly generated sequence 1 Validation Status to ‘Do Not Report’.

This will create 2024 1098-T's with the data necessary to account for accurate 1098-T's/adjustments made during the 2025 year.

College Review After Processing is Required:

Please refer to the steps in this QRG.

After generating prior year 1098-T's in batch and identifying records in a Pending Validation status, colleges will review and set new records’ validation status to ‘Do Not Report’ as needed.

Timeline for Cleanup:

  • 1098-T Prior Year Processing Freeze - September 5 - 26
    • Only State Board will generate 1098-T's for a prior year during this window. Open a ticket or reach out via email if one is needed.
  • State Board Processing - Between August - September
    • State Board mass generates 1098-T's and will set Sequence 1 records newly generated to Do Not Report.
  • College Cleanup  - End of October (Complete any other cleanup for reconciliation due September 30)
    • Before your Production run, you must generate 1098-T's en masse with all overrides selected to generate the prior year’s 1098-T for all students that could have an adjustment made to that year after December 31st of the prior tax year. 
    • After generating these records, you will need to review each record and set the Validation Status to Do Not Report. This will ensure correct ‘current’ tax year processing.
1. Generate 1098-T

Navigation: Student Financials > Taxes > Generate 1098-T

  1. The Generate 1098-T run control ID search page displays.
  2. Select the Add a New Value button to create a new Run Control ID and select the Add button.
    • NOTE: It is important to note that Run Control IDs cannot be deleted. Do not include spaces in your Run Control. We encourage the Run Control ID to have the same process naming convention but unique to the step; because of this, including your institution code and a short process description in the Run Control ID is recommended--e.g., WA140_GEN_PRIOR_1098T (Generate, Prior Year, 1098-T).
  3. The Generate 1098-T page displays.
  4. In the Control Information section, enter or search for the:
    1. Federal TIN.
    2. Calendar Year.
    3. Alternate NID Type of ITIN.
  5. In the Bypass Validation Edits section, select ALL checkboxes.
    1. PeopleBooks Definitions:
      1. Citizenship: Select to bypass the Citizenship edit, so that a 1098-T is produced for all students with eligible charges regardless of citizenship status.
      2. Academic Credit: Select to bypass the Earned Academic Credit edit, so that a 1098-T is produced for all students with eligible charges, even if they are enrolled in classes that earn no academic credit.
      3. Financial Aid: Select to bypass the Financial Aid edit, so that a 1098-T is produced for students who have eligible charges paid entirely by Financial Aid.
      4. Financial Info: Select to produce a 1098-T for students who have no financial information in boxes one through six. If the students are currently enrolled, the 1098-T is produced.
  6. To run a batch of students, do not select the Student Override checkbox. 
  7. Select the Run button. Please refer to the Process Schedule Request steps for further instructions.
  8. Section complete.
Generate 1098-T page with the Calendar Year field populated with 2024. The Alternate NID Type field populated with ITIN. All Bypass Validation Edits checkboxes are selected.
2. Identify newly generated Sequence 1 records to edit.

Navigation: Reporting Tools > Query > Schedule Queries

  1. The Scheduled Query Find an Existing Value page displays.
  2. Select the Add a New Value tab to create a new Run Control ID and select the Add button.
    • NOTE: It is important to note that Run Control IDs cannot be deleted. Do not include spaces in your Run Control. We encourage the Run Control ID to have the same process naming convention but unique to the step; because of this, including your institution code and a short process description in the Run Control ID is recommended--e.g., WA140_1098T_LS.
  3. The Schedule Query page displays.
  4. Enter QCS_SF_1098T_LATEST_STATUS in the Query Name field and select the search button. The Scheduled Query Search Page displays.
    • QCS_SF_1098T_LATEST_STATUS - provides the latest 1098-T student data and includes the status pertaining to the Auditing and Validating steps.
  5. Select the QCS_SF_1098T_LATEST_STATUS hyperlink within the Query section and the Prompts window displays.
    1. Enter the Unit.
    2. Enter or search for the year.
    3. Select the Validation Status (Optional) drop-down and select the Pending Validation Status option.
    4. Select the OK button and the Schedule Query page displays.
  6. Select the Run button. Please refer to the Process Schedule Request steps for further instructions.
  7. Section complete.
3. Editing 1098-T

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

After generating in batch and identifying records in a Pending Validation status, set new records’ validation status to ‘Do Not Report’.

  1. The 1098-T Data search page displays.
  2. Enter the appropriate information in the Search Criteria fields to identify your student.
  3. Select the Search button.
    • Note: If the student has been processed for multiple 1098-T's (years or colleges), those results will populate below the search button. Select the appropriate hyperlink.
  4. The 1098-T Data page displays.
  5. Select the Override Data button to create a new row.
  6. Ensure the Overridden checkbox is selected within the 1098-T Status section.
  7. On the new row of student data, set the Validation Status field to ‘Do Not Report’.
    • Do Not Report: The 1098-T Form Print report ignores records with this validation status. You can only assign this validation status to a record manually. Change the validation status to Do Not Report if you determine that you do not want to print or electronically file a 1098-T tax form for this student.
  8. Select the Save button.
  9. Section complete.
1098-T Data page. The Seq. Nbr. 1 field is highlighted. The Validation Status shown as Pending Validation is highlighted. The Override Data button is highlighted. A text box has been added to the top of the image that says "Before Override Data."
1098-T Data page with the Seq. Nbr. 2 and overriden checkbox is highlighted. The Validation Status populated with "Do Not Report" is highlighted. A text box at the top of the image has been added that states "After Selecting Override Data."

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