1098T Instructions2018-12-11T19:14:05+00:00

Please be advised that it is ultimately the institution’s responsibility to ensure accurate data is reported for 1098-T reporting purposes and by the deadline established by the Internal Revenue Service. For questions regarding this functionality within Diamond SIS please direct all inquiries to Diamond SIS Support by navigating to https://support.diamondsis.com and submitting a ticket.

1098T – Annual Printing

Diamond SIS will update 1098-T functionality annually to conform to IRS Regulations.  Institutions will not need to purchase special forms or envelopes.  Diamond SIS generates a 1098-T form for each eligible student.  The 1098-T form can be tri-folded to fit in a standard window envelope. 1098-T forms to students must be postmarked or delivered electronically no later than January 31st and electronic filing to the IRS must be submitted by March 31st of each calendar year. However, we highly recommend institutions file before that date.

What’s New

Form 1098-T, Tuition Statement
• Payer “A” Record – Field Position 28-43 – Deleted Amount Code 2 – Amounts Billed for Qualified Tuition and Related Expenses.

Future Developments

For the latest information about developments related to Form 1098-T and the instructions, such as legislation enacted after they were published, go to https://www.irs.gov/forms-pubs/about-form-1098-t.

Exceptions

You do not have to file Form 1098-T or furnish a statement for:

  • Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program;
  • Nonresident alien students, unless requested by the student;
  • Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships; and
  • Students for whom you do not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement between an institution and the student’s employer or a governmental entity, such as the Department of Veterans Affairs or the Department of Defense.

Who Must File

You must file Form 1098-T if you are an eligible educational institution. An eligible educational institution that is a governmental unit, or an agency or
instrumentality of a governmental unit, is subject to the reporting requirements of Form 1098-T. A designated officer or employee of the governmental entity must satisfy the reporting requirements of Form 1098-T.

If another person receives or collects payments of qualified tuition and related expenses on your behalf, the other person must file Form 1098-T. However, if the other person does not possess the information necessary to comply with the reporting requirements of Form 1098-T, then you must satisfy the reporting requirements of Form 1098-T.

Eligible Educational Institution

An eligible educational institution is a college, university, vocational school, or other postsecondary educational institution that is described in section 481 of the Higher Education Act of 1965 as in effect on August 5, 1997, and that is eligible to participate in the Department of Education’s student aid programs. This
includes most accredited public, nonprofit, and private postsecondary institutions.

Qualified Tuition and Related Expenses

Qualified tuition and related expenses are tuition, fees, and course materials required for a student to be enrolled at or attend an eligible educational institution. The following are not qualified tuition and related expenses.

  • Amounts paid for any course or other education involving sports, games, or hobbies, unless the course or other education is part of the student’s degree program or is taken to acquire or improve job skills.
  • Charges and fees for room, board, insurance, medical expenses (including student health fees), transportation, and similar personal, living, or family expenses.

Additional Information

For more information about reporting on Form 1098-T, see Regulations section 1.6050S-1. Also see Notice 2006-72, 2006-36 I.R.B. 363, available at https://www.irs.gov/irb/2006-36_IRB#NOT-2006-72 for guidance in a question and answer format on the information reporting requirements for Form 1098-T.

Statements to Students

If you are required to file Form 1098-T, you must furnish a statement or acceptable substitute, on paper or electronically, to the student.

Electronic Delivery of Form 1098-T

Educational institutions may present the option to consent to receive Form 1098-T electronically as part of a global “Consent To Do Business Electronically,” combining consent for electronic delivery of Form 1098-T along with other institutional student business functions such as admissions, registration, billings,
and direct deposits.

The global consent process must meet all the consent, disclosure, format, notice, and access period requirements for electronic furnishing of Forms 1098-T as required by paragraphs (a)(2) through (6) of Treasury Regulations section 1.6050S-2. For more information about the requirements to furnish a statement to each student, see part M in the 2018 General Instructions for Certain Information Returns.

Truncating Student’s TIN On A Payee Statement

Pursuant to Treasury Regulations section 301.6109-4, all filers of Form 1098-T may truncate a student’s TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)) on payee statements. Truncation
is not allowed on any documents the filer files with the IRS. A filer’s TIN may not be truncated on any form. See part J in the 2018 General Instructions for Certain Information Returns.

Student’s TIN and Checkbox

Enter the student’s TIN, as provided to you on Form W-9S, Request for Student’s or Borrower’s Taxpayer Identification Number and Certification, or other form. If you solicited the student’s TIN in writing (Form W-9S or other form) for the current year, check the box. Also check the box if you obtained the student’s TIN in a prior year by making a solicitation in writing (Form W-9S or other form) or you obtained the student’s TIN in a prior year from his or her financial aid application or other form and in either case have no reason to believe the TIN previously obtained is incorrect. Check the box if the institution is filing the Form 1098-T with nothing in the field for the student’s TIN because the institution has no record of a TIN, but only if you made a written solicitation for the TIN on or before December 31 of the year for which you are filing the Form 1098-T. By checking the box and filing Form 1098-T with the IRS (for electronic filers), you certify under penalties of perjury that you have in good faith complied with the standards in Treasury Regulations section 1.6050S-1 governing the time and manner of soliciting the TIN of the student. Filers who transmit paper forms to the IRS will make such certification by signing Form 1096 in conjunction with filing the returns with the boxes checked in the fields designated for the student’s identification number.

IRS Fire System Account Information

You must have a Transmitter Control Code (TCC) before you can transmit an electronic information return file. If you have any questions, please contact the Internal Revenue Service at 1-866-455-7438. We recommend you zip your submission file for faster transmission. We also recommend that you verify with the IRS that your submittal file has been received, processed and accepted. The IRS address for filing information returns electronically is https://fire.irs.gov. The address to send a test file electronically is https://fire.test.irs.gov.

Preparing to Run 1098T Forms Using Diamond SIS

Prior to generating 1098-T forms using Diamond SIS the parameters must be set for the students who should receive a 1098-T form according to the IRS Regulations.

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