1098-Mortgage Interest Process
This extract provides the ability to extract the 1098 Mortgage Interest information from the General Ledger Posted Detail (another option is to enter the 1098 information into the 1098-Mortgage Interest/Payee Maintenance 1098 Screen). This extract accumulates a net amount for each property, then distributes that amount to the owners. 1099 Payee records are then created for each owner. Typically, transactions in this account are negative that will be changed to positive upon extract.
1. To perform the extract you will need the journal number and account that you are wanting to use to pull your 1098 information. The GL transactions must be coded to an account that has detail at the payer level. All information extracted from the General Ledger will be placed in Box 1 of the 1098 by default. If the information needs to go in box 2, box 3 or box 10, it will need to be manually typed into those three boxes in the Payee Maint 1098. Currently the system doesn’t support entries into box 4 & 5.
NOTE ABOUT TAX ID NUMBERS: To get the Tax ID number to pull in for the Customer Sub-Table, you will need to make sure to attach the Revenue/Billing Tab or the A/P tab to the Sub-Table in the General Ledger module > Master Files Maintenance > Sub-Table. If Tax ID's are entered for the customers, they will pull through in the extract. Otherwise, the data will extract without a Tax ID number attached to it for the 1098.
2. The extracted 1098 information can be viewed in the 1098-Mortgage Interest/Payee Maintenance 1098 Screen by running a listing. This is also where 1098 information can be entered manually if an extract is not desired.
3. Run the 1098 Error Listing by clicking on "View" at the bottom of the screen. Review the listing for any errors and correct if necessary. This listing can be printed or saved to a file if desired. Run the Error Listing again until all errors are corrected. If desired, the TIN Matching list and file can be created by clicking on the Extract for TIN Matching button. View and/or Print the generated report for any errors and file location. See TIN Matching for further detail.
4. Print the 1098's on plain paper or pre-printed forms. Pre-printed forms will give your 1099's a professional look. Printing on plain paper allows you to choose to print Copy B and/or C.
Note: To mask the SSN number, check the Mask SSN box.
The PakEnergy Accounting Forms department can help you with anything you need. Contact our Forms Department today!
5. Print Form 1096 for 1098. If this is the final return (the last return that will be submitted for the company), check the corresponding box. Print the 1096 for the IRS on a pre-printed form (required). Print an office copy of the 1096 on plain paper or save to file.
6. Export 1098 Transmittal. If the file being created is a test file, check the corresponding box for test file. Click the "OK" button at the bottom of the screen to create the file. Take note of the file destination. Click on the "View Log" button to view a summary of the export and its totals. Print or save to file.
