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Administrator Guide
Last Updated: 2023-06-23
Reference: 1098-T Fields and Box Calculations

Reference: 1098-T Fields and Box Calculations

VOID and CORRECTED

Workday:
  • Doesn't mark forms with VOID.
  • Marks all forms generated in the run as CORRECTED, when you select this check box on the
    Create 1098-T Run
     task.

Filer Information Fields

Workday populates these fields from the Company of the Institution:
  • FILER'S Name, Address, and Telephone Number.
  • FILER'S Employer Identification No.
You can override the information for these fields using the
Maintain 1098-T Options
 task.

Student Information Fields

Workday populates these fields from the student's profile:
  • TIN
  • Student's Name
  • Street Address (Including Apt. No.)
  • City or Town
  • State or Province
  • Country
  • ZIP or Foreign Postal Code
Workday uses the student home address when available.

Service Provider/Account Number

You can add this information using the:
  • Edit Student 1098-T
     task for individual forms.
  • Maintain 1098-T Options
     task for all forms.

Box 1: Payments Received for Qualified Tuition and Related Expenses (QTRE)

Workday determines the Box 1 value by calculating the total eligible payments and total eligible charges (including any carryover from the prior year) and reporting the lesser value.
Total Payments Calculation
Workday sums payments and payment adjustments that:
  • Have an approved status.
  • Are associated with a
    Student Payment Event
     or
    Student Payment Adjustment Event
     business process events that have a completion date within the calendar year.
For the calendar year, Workday:
  • Sums these types of payments, including adjustments for:
    • Disbursements for student awards, where the
      1098-T Impact
       value on the student award item is
      Box 1 Impact Only
       or
      Box 1 and Box 5 Impact
      .
    • Disbursements for student sponsor contracts.
    • Student private scholarship payments, when you use the
      Record Student Private Scholarship Payments
       task.
    • Student waiver payments, when the
      1098-T Impact
       value on the student waiver item is
      Box 1 Impact Only
       or
      Box 1 Impact and Box 5 Impact
      .
    For downward payment adjustments, Workday reduces the original payment amount. For upward payment adjustments, Workday records a new payment.
  • Excludes canceled payments and completed returned payments.
  • Subtracts refunds not returned or canceled.
  • Subtracts Student Credit Memos, where the
    1098-T Impact
     value on the
    Record Student Credit Memo
     task is
    Box 1 Impact Only
     and the student receives a refund.
Total Charges Calculation
Workday sums charges and charge adjustments that:
  • Have an approved status.
  • Have a classification of
    1098-T
    .
  • Are associated with a
    Student Charge Event
     business process event that has a completion date within the calendar year.
Workday also:
  • Includes charge adjustments with transaction dates within the calendar year.
  • Includes carryover charges from the prior year.
  • Excludes canceled charges.
  • Subtracts student waiver payments where the
    1098-T Impact
     is
    Reduce QTRE
    .
Carryover Calculation
When a student's total charges plus prior year carryover are greater than their total payments, Workday records the difference as the carryover amount for the next year. When you process 1098-T forms in the next year, Workday recalculates the carryover to account for all adjustments that might have occurred since the prior year. If you override the carryover amount, Workday uses that amount in 1098-T processing for the next year. The year after that, Workday resumes calculating carryover based on charges and payments unless you override the amount again.
Example:
  • 2019: Workday calculates carryover amount to be 5000. You override this value to 1500.
  • 2020: Workday uses 1500 as the prior year carryover amount in 1098-T processing.
  • 2021: Workday calculates the prior year carryover amount ignoring any overridden carryover amount in 2019.
When the subtotal of Box 1 minus Box 4 is greater than the subtotal of the Total Charge minus the Total Reduced QTRE, then the carryover amount equals zero. Workday doesn't carry over any excess payment amounts into the next year.

Box 4: Adjustments Made For a Prior Year

For every applicable prior calendar year, Workday:
  1. Calculates the Box 1 value for the prior calendar year as of December 31 of the current calendar year. (Value A)
  2. Calculates the Box 1 value for the prior calendar year as of January 1 of the current calendar year. (Value B)
  3. Subtracts Value B from Value A.
  4. When the difference is negative, Workday adds the absolute value of the difference to the Box 4 amount.
Workday:
  • Considers canceled charges, canceled payments, and completed return payments as negative adjustments and includes them in this calculation.
  • Subtotals each previous year where an adjustment occurred during the current year to an originating transaction in a previous year. That subtotal can't be greater than the amount reported in Box 1 for that previous year. Then we sum all the subtotals to calculate the total Box 4 value for the current year.

Box 5: Scholarships or Grants

Workday sums these types of payments posted in the current calendar year:
  • Student award disbursements, when the
    1098-T Impact
     value on the student award item is
    Box 1 and Box 5 Impact
     or
    Box 5 Impact Only
    .
  • Student private scholarship payments, when you use the
    Record Student Private Scholarship Payments
     task.
  • Disbursements for student sponsor contracts, when you select the
    1098-T Impact
     check box on the student sponsor contract.
  • Student waiver payments, when the
    1098-T Impact
     value on the student waiver item is
    Box 1 and Box 5 Impact
     or
    Box 5 Impact Only
    .
Workday excludes refund recovery charges from the sum.

Box 6: Adjustments to Scholarships or Grants for a Prior Year

The sum of net downward adjustments in the selected calendar year to financial aid disbursements in a prior calendar year. Workday considers net upward adjustments new disbursements and includes them in Box 5 calculations.
Example:
Prior Year Financial Aid Disbursement
Prior Year Amount
Current Year Adjustments
Amount included in Box 6
Student award payment
1000
-500
+250
250
Student waiver payment
1000
-500
+1500
0
Workday includes the net 1000 upward adjustment in Box 5.
Disbursements for student sponsor contract
1000
-400
400
In this example, the Box 6 value for the current calendar year is 650.

Box 7: Checked If the Amount of Box 1 Includes Amounts for an Academic Period Beginning January-March of the Next Calendar Year

Workday selects this check box when both of these conditions are true:
  • At least 1 QTRE charge exists for an academic period (AP) with a standard start date that begins between January and March of the next calendar year.
  • Total QTRE charges (excluding charges for an AP with a standard start date that begins between January and March of next calendar year) are less than total payments.

Box 8: Checked If At Least Half-Time Student

Workday selects this check box when the
Academic Period (All)
 load status on the student's attendance plan includes 1 of these values for 1 or more academic periods in the calendar year:
  • ½-time
  • ¾-time
  • Full-time
When you retroactively change a load status:
  • For a prior calendar year, Workday doesn't update the Box 8 value for the corresponding prior year 1098-T form. You can override the Box 8 value for the prior year 1098-T form manually.
  • Within the current calendar year, Workday takes that into account when calculating the Box 8 value for the current year.

Box 9: Checked If a Graduate Student

Workday selects this check box when:
  • The student is 1 of the academic levels that you designate on the
    Create 1098-T Run
     task.
  • You select the
    Graduate Student
     check box on the
    Generate Student 1098-T
     task.
Workday determines the academic level (AL) of a student based on either:
  • Their enrollment as defined by programs of study with an AL of Graduate in the calendar year.
  • The federal student aid (FSA) grade level recorded on their financial aid attendance plan with 1 of these levels for the calendar year:
    • 1st year graduate/professional
    • Continuing graduate/professional
When the student has multiple academic records for the current calendar year, Workday selects the check box when they're a graduate student in any of the records.

Box 10: Insurance Contract Reimbursements or Refunds

Workday doesn't calculate anything for this box. You can manually enter a value using the
Edit Student 1098-T
 task.

Legacy Data

When calculating values for a 1098-T conversion year, Workday includes both:
  • Legacy transactions for the conversion year.
  • Workday transactions for that year.
You can view, add, and update the legacy transactions on the
Maintain 1098-T Conversion Year for Student
 task.
Box
Calculation Details
Box 1
When the
Box 1 Impact
 of a legacy transaction is:
  • Charge
    , Workday adds it to the total charges calculation.
  • Payment
    , Workday adds it to the total payments calculation.
  • Refund
    , Workday subtracts it from the total payments calculation.
Box 4
Workday sums all legacy transactions when you select the
Box 4 Impact
 check box. Conversion years don't have any Workday transactions with Box 4 impact.
Box 5
Workday sums both:
  • Legacy transactions when you select the
    Box 5 Impact
     check box.
  • Workday transactions with Box 5 impact.
Box 6
Workday sums all legacy transactions when you select the
Box 6 Impact
 check box. Conversion years don't have any Workday transactions with Box 6 impact.