1098-T Form Calculation Logic

When verifying the accuracy of final values produced by the 1098T Form process, it is important to understand the logic used in the CAMS_A1098TForm stored procedure and QTRE (Qualified Tuition and Related Expenses).

The 1098-T calculation checks the previous year for any unpaid QTRE remainder that can be rolled into the current year QTRE cap. QTRE will be capped to include the current year total possible QTRE and the previous year remainder of unpaid QTRE. The calculation will sum up all payments, grants, and scholarships for the reporting year and make a comparison to the total possible QTRE to find the Qualified QTRE Payments total.

Calculation Logic:

Previous Year QTRE Remainder	IF(Previous Year Possible QTRE <= (Previous Year Total Payment - Previous Year Refunds), then 0, else (Previous Year Possible QTRE - Previous Year Total Payment - Previous Year Refunds))
Current Year Possible QTRE	Ledger Debits 1098T Tuition Deductible
Total Possible QTRE	Previous Year QTRE Remainder + Current Year Possible QTRE - Refund Reimbursement
Payments	Ledger Credits 1098T Tuition Deductible
Grants	Ledger Credits 1098T Scholarship/Grant
Refund Reimbursement	Current Year 1098T Refund Reimbursement
Total Payments	Payments + Grants - Refund Reimbursement
Box 1 Total	IF(Total Possible QTRE <= Total Payment, then Total Possible QTRE, else Total Payment)

Note: The Unit4 support team will not give tax advice on filling out the 1098-T form; please seek a professional tax expert to ensure accuracies in reporting.

Ledger Transactions

The 1098-T Form process will only look at transactions on student ledgers and will not include items in the Billing Batch. Only transactions within the reporting scope will be considered. Transaction Date and Term associations must be correct, and TransDocs must be appropriately marked in Transaction Documents Setup prior to initiating the form. ONLY transactions that are within the reporting scope and have a selected Transdoc 1098-T checkbox on the will be considered in calculation. Important: The Transaction Type of the Transdoc your institution uses for Tuition Charges must be set to debit for opposing transactions.

- 1098-T Tuition Deductible - Check this box to indicate whether the transaction is 1098-T deductible. Debit transactions on Billing Ledger will be added to the possible QTRE amount for the year on Box 1. Credit transactions on the ledger will be added to the amount of total payments received for the year on Box 1. Opposing transactions with the term set for the reporting year will reduce QTRE, if the term is marked for a previous year the transaction will report on Box 4.
- 1098-T Refund/Reimbursement - Check this box to indicate whether this transaction is a refund or reimbursement which will affect the total 1098-T deductible. The 1098-T Refund/Reimbursement checkbox will reduce TuitionCredits for Box 1 calculations if the term is set to the current year.
- 1098-T Scholarship/Grant - Check this box to indicate whether this transaction is a Scholarship or Grant. The 1098-T Grant/Scholarship checkbox will report ledger debits for previous terms in Box 6, otherwise any ledger credits in the current year will be added in Box 5. Credit transactions in the current year will be added to the amount of total payments received for Box 1.
- 1098-T Insurance Contract - This transaction will populate Box 10 on the 1098-T form and be subtract from Box 1.

Note: The 1098-T process checks ONLY these 1098-T related fields to determine whether transactions will be included in 1098-T reporting. Only ONE box should be checked per any TransDoc for 1098-T reporting. To not include a ledger transaction for 1098-T reporting, do not select any of the 1098-T checkboxes on its TransDoc.

IMPORTANT: CAMS uses ShowAmount, a transaction attribute hidden in the front-end, to compute final values for the 1098-T report. Due to the nature of this field and complexity of stored procedure logic, it is imperative that opposing transactions (items added to the ledger to negate or reconcile a related transaction using the same TransDoc) are checked for accuracy on the Billing Ledger. If maintenance is required go to Billing > Maintenance to access Billing Ledger. Voiding can also be used to fix error on the Billing Ledger.

Reporting Scope

Initiating the 1098-T Form will first evaluate Date and Term ranges and then create a temporary table (#TmpBilling) of transactions fitting these criteria. This includes all Billing and Non-Billing ledger transactions with a Transaction Date between the First Day in Report Year January 1st, and Last Day in Report Year December 31st.

Chose each term from the next calendar year as future terms on the form, select the appropriate term(s) from the Terms in Calendar Year that begin January thru March 20xx. Transactions associated with a future term are to be included in the report (e.g. early payment for Spring of the subsequent calendar year), then the term must be selected in the Terms in Calendar year that begin January thru March field in order for the Future Terms flag to be set to Yes on the 1098-T form.

1098 Troubleshooting

If your 1098 forms or verification report are not coming out correct here are some checklist items to verify before submitting a trouble ticket.

Check your criteria.

Is your criteria correct for the year you are reporting on?
Calendar Year is for the correct year.
Are the correct terms selected for the report year?
Is the correct term selected for the first term in the current year?
Are the correct terms selected for the January Thru March field?
Have you selected the correct GPA Groupings for Graduate students and are those students actually marked with those GPA Groupings on their status record?

Amounts are not coming out correctly.

Have opposing transactions been used to reconcile a student's ledger?
Ensure that your TransDocs are marked correctly. Only one 1098 related checkbox for any TransDoc should be marked. If you find some that are not marked correctly, fix them and then rerun the 1098 reports.
Are the transactions themselves actually correct?