Processing 1098-T Forms

The 1098-T Hope Scholarship Processing is used to generate 1098-T forms along with a tape file to be sent to the IRS. The process uses selection criteria to select which accounts to process and then places the corresponding information into the tape file, named in the common code AR98/FILEINFO, and subsequently produces forms to be sent to the student. The special form SPFMAR98 must be defined and in the PERM group already.

See common codes AR98/FILEINFO and AR98/TRECINFO for explanations on how these must be filled out.

When running ARRE98xx, the program will produce a tape file, as defined in AR98/FILEINFO, and produce forms as defined in SPFMAR98 on the AR Special Forms (ARSPSF) page.

Reporting Setup

Required ARUPAC Fields
Tax ID: This ID represents the taxpayer that will be claiming the deduction. This ID must also exist in the Person/Entity database, or an accessible, external PE database.
Tax PE-CD: This field indicates the PE database in which the Tax ID is stored. Valid options are P, 1, 2, A, B and H. The default is "P"; the BusinessPlus Person/Entity database. (Note: On the BusinessPlus 7i screen the Tax PE-CD is not displayed as it is handled internally.)
Full Time: Entering a check mark in this field indicates that the student is enrolled with enough credits to be considered at least half time. This value will be transferred to the corresponding field on the 1098-T form.
Graduate: Entering a check mark in this field indicates that the student is a graduate student. This value will be transferred to the corresponding field on the 1098-T form.

Updating ARUPAC Fields
Maintenance of these fields is performed manually through the Account Information Screen (ARUPAC).

Magnetic Tape File

The IRS requires that 1098-T records be sent via magnetic media or electronic filing if the entity is filing 250 or more returns. The magnetic media/electronic file contains various information about the filing organization as well as the actual 1098-T record information (review IRS publication 1220 for more specific details in this area). There are four common codes that are used to store this static organization information. They are AR98/FILEINFO, AR98/TRECINFO, AR98/BRECINFO and SYNO/1098T.

Form Setup

The 1098-T forms use the same form printing routines that are used for printing AR billing statements and invoices. Standard special form definition files already exist in the perm directory which conform to the 1098-T Continuous Feed, Cut Sheet Laser and Pressure Seal Laser Form layouts and are called SPFM98CF, SPFM98CL and SPFM98PS.

New formats to accommodate other 1098-T forms can be created, but they must be named "SPFM98" followed by a unique two-character code. That same two-character code must then be added to the menu options for question AR8B (NUUPJBQS).

The filer information (the organization's name, address and TIN), needs to be entered/updated in the SPFM98xx form as well as the flag (X) for box 3's information. Use the special form update process (ARSPSF) to modify the form to contain the proper filer information.

Besides the filer and student's information there are ten numbered boxes on the 1098-T form. Boxes 8 and 9 are automatically populated with the information on ARUPAC, and Box 3 is populated from the form itself. To populate numbered boxes 1, 2, 4, 5, 6, 7 and 10, the SPFM98xx format has been defined to print out these boxes using the Named Total feature of the Recurring AR process.

PowerSchool has designated seven Named Total names and placed them in the format in the appropriate places. They are =1098BX1 through =1098BX0.

Reporting Boxes 1 through 10
Each institution defines and identifies which AR transactions qualify for each box. Since there is no standard way of defining and identifying these transactions, BusinessPlus cannot automatically calculate these boxes. However, what BusinessPlus can use to identify and calculate these boxes is a Named Total, created by the Recurring AR process, which is defined by the client.

What a Recurring AR process using a Named Total does is allow the client, through selection criteria to identify transactions and perform basic calculations (+, -, /, *) on them. One can then store this calculated total in a table in the AR database for each AR account ID selected. The Named Total then can be used by the 1098-T reporting process to populate one of the boxes on the form.

A different Named Total will have to be created for each of the seven boxes using the naming convention =1098BX1 through =1098BX0. For conformity and ease of support, it is recommended that each of the Recurring AR processes used to create the Named Totals be named the same as the Named Total, minus the equal sign. For example, recurring AR "1098BX1" would create the "=1098BX1" Named total. If the Named Totals are not created, the 1098-T reporting process will print blanks in the boxes.

Box 7 is a special case since it is a check box. The Named Total =1098BX7 is set up with an if code of not equal to zero. This means that the =1098BX7 Named Total has to be set up to have a non-zero amount for student IDs transactions that pass the future academic period criteria. Therefore, if the Named Total exists and calculates to a non-zero amount, an "X" will be placed into the check box. Otherwise it will be left blank.

Box 10 is called 1098BX0.