Form 1098- T is to be filed with the IRS and issued to students by eligible educational institutions. Eligible educational institutions may choose to report payments received, or amounts billed, for qualified tuition and related expenses.
It is an IRS requirement for filers to file 1098 T copy A and 1096 forms. Filers can choose to mail paper forms to the IRS directly or to electronically file their 1098 T forms. You can file electronically through the Filing Information Returns Electronically System (FIRE System) you will be required to have software that produces a file in the proper format. The IRS requires filers filing 250 forms or more to electronically file. This rule applies to each type of 1098/ 1099 form separately.
1098 T forms must be issued to students no later than January 31st of the following tax year. The student receives 1098 T copy B. The IRS requires electronically filed forms to be submitted no later than March 31st of the following tax.
Use 1098 T Software to comply with federal submission standards as outlined in IRS Pub. 1220. First-time filers need to register with the IRS/FIRE System. The IRS will assign you a Transmitter Control Code. This is an identification code you will use when e-filing using the FIRE System. Apply for this code by filling out IRS Form 4419.
The following steps are a general outline of how to use 1098 T filing software to generate a federally accepted e-file submission file.
A. Click company select new company and enter the institutions name.
B. In the next screen enter the company address and Employee Identification Number (EIN).
C. Click 1096 Annual Transmittal Summary Form information enter the contact person's name, phone number and email address. Enter the filer's name if different from the company name. For instance the filer's name may be different than the educational institution if you are a tax preparer.
D. Click 1098 T recipients choose new recipient and enter the student's Social Security Number, type of form received, name and address.
E. Click 1098 T forms. In this screen, to the left, you should see the recipient's information populated with the previously entered data. On the right side of the screen you will enter totals in the boxes that apply to this student.
F. Create the e-file submission. In the W2 1098-T software click e-filing then choose 1098 T forms. A box will pop up for you to enter the submitter's information. Enter the submitter's name, TCC, transmitter's company name and address. Then enter the contact person's information including name, number and email address. The last item to complete is the location to where you want to save the submission file.
G. Once the submission file has been saved you will proceed to the IRS/FIRE website and e-file 1098-T forms by uploading this file directly to the IRS. The IRS will send a confirmation that the file was received.
For more information concerning 1098-T filing software visit http://www.w2mate.com
