Electronic Reporting through Nelco (1098 & 1099)

Contents

• Prerequisites
• Access the Balances Screen
• Close and Create an Export File
  • Why Records Might Not Generate
• Review the Action Item
• Send Data to Nelco
  • Status Messages
• View and Complete Order in Nelco
• Troubleshooting



Prerequisites

Before submitting forms to Nelco, ensure you have:

For 1099 Processing:

• Completed 1099 setup and configuration.
• Audited 1099 balances on the 1099 and Non-1099 tabs.
• Verified all service provider information is accurate.
• Confirmed payment amounts of $600 or more.

For 1098 Processing:

• Enabled Send 1098 for applicable associations.
• Created mortgage records for the tax year.
• Verified all homeowner share allocations and EIN/SSN information.
• Reviewed the Association > 1098 Balances > 1098 Owners tab in each association for accuracy.

For Both Form Types:

• Configured action items with the appropriate additional actions:
• Generate [1099/1098] Export Data
• Send 3rd Party [1099/1098]
• Access to the Close and Create buttons (requires appropriate role security). See the "1098 Mortgage Interest Reporting" article.
• Nelco account credentials (first-time users will create an account during the process). It is a good idea to set up your account ahead of time.
   

Access the Balances Screen

Navigate to the appropriate balances screen based on the form type you're processing:

For 1099 Forms: Navigate to Service Providers > 1099 Balances.

For 1098 Forms: Navigate to Association > 1098 Balances.

Note: If you do not see these menu options, contact your System Administrator to adjust permission settings.



Close and Create an Export File

After auditing your form information, close the records and create the export file for Nelco submission.

Important: It is highly recommended that you select all (or as many as you are prepared to close and submit) associations or providers at one time, as this creates a single action item and streamlines the Nelco submission process.

To close and create export files:

1. On the balances screen (see previous section), select one of the following tabs:
   • For 1099 Forms: Go to the Status tab and select the associations you wish to generate.
   • For 1098 Forms: On the 1098 Balances page, select the mortgage records you wish to generate.
2. Click Close and Create Export File for Submission. 
   Note: The Close button only functions when selected items have an Open status. If you attempt to close already-closed records, you'll receive a notification. 
   The 1098 Data Generation screen displays.
   
   
   
3. Click Continue. 
   The system:
   • Changes the status to Closed (with action item number).
   • Creates an action item for export data generation.
   • Generates a CSV export file in Nelco-compatible format.
   • Adds an activity note documenting the closure.
      

Why Records Might Not Generate

If your records do not generate, check the following:

For 1099 Forms: The amount for that provider/association is less than $600 total, which does not need to be reported and therefore is not generated.

For 1098 Forms:

• Missing required information (association EIN, homeowner SSN or EIN, or mortgage interest not greater than $0).
• Send 1098 is disabled for the association.



Review the Action Item

After closing and creating the export file, review the generated action item to verify the data before sending to Nelco.

To review the action item:

1. On the 1099 Balances or 1098 Balances screen, click the Reporting tab.
2. Sort the XN column in descending order to view the most recently created action item (you may need to refresh the page). 
   
   
   
   The action item displays with a status of:
   • For 1099: 1099 Export Data - Review 1099 Data.
   • For 1098: 1098 Export Data - Review 1098 Data. Important: If the item is not yet in Review status, wait for the generation to complete. Refresh the page periodically to check for its advance to the review step.
3. Click the caret next to the action item to open the XN Messages.
4. Click the Attachment (Paperclip) icon to to open the Attachments viewer, the Download symbol () in the upper-right, and then select the file from the list. 
   
   
   
5. Review the file to verify all information is accurate:
   • Recipient information (service provider or homeowner).
   • Tax identification numbers.
   • Payment or mortgage interest amounts.
   • Address information.
   • Form-specific data fields.
      

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Send Data to Nelco

After verifying the exported data, step the action item forward to transmit the information to Nelco.

To send data to Nelco:

1. On the Reporting tab, locate your action item.
2. Click Step to approve and advance the action item. 
   The Next Step screen opens.
3. From the Next Step field, select Send [1098/1099] Data to Nelco, and then click Update. 
   You will receive a confirmation message. 
   The system transmits the data to Nelco and updates the status on the 1098 or 1099 tabs to Closed. The status on the Reporting tab changes to:
   • For 1099: Send 1099 Data to Nelco.
   • For 1098: Send 1098 Data to Nelco.
4. Refresh the Reporting tab to view the status message on your sent item. 
   If it fails for any reason we display the information in Note field of the Reporting tab. You can click View in Nelco to review reasons for failed submission.

Note: The transmission may take a moment to complete. Refresh periodically to see the updated status.



Status Messages

• Success Message: "Your [1099/1098] data was successfully sent to Nelco" with a View in Nelco link.
• Error Message: "Your [1099/1098] data contains errors and could not be accepted by Nelco. Please review one-time error information regarding this filing. Once the errors have been corrected, please regenerate your [1099/1098] data and resend. [View in Nelco]".



View and Complete Order in Nelco

Use the one-time link to navigate to the Nelco portal and complete your filing order.

To complete your order in Nelco:

1. Click the View in Nelco link in the action item note. 
   The Vantaca/Nelco portal opens in a new window.
2. First-Time Users: Click Create Account to set up your Nelco account using the link provided. 
   OR
   Returning Users: Sign in with your Nelco username and password.
3. Review the submission details:
   • Number of forms
   • Recipient information
   • Filing method (electronic)
   • Associated fees
4. Review a summary of the forms to submit:
   • Preview individual forms
   • View Summary or Detail reports
5. Click Next to continue.
6. Enter your payment details and complete the checkout process.
7. After completing your order, view the status at any time from the Vantaca/Nelco portal by navigating to the Form Filing History page.

Important: You must use the View in Nelco link and then complete the order process in the Nelco portal to finalize data submission. Simply stepping the action item does not complete the filing process.

Note: When eFiling through Nelco, a 1096 form is not generated because that form is not needed when filing electronically (1096 is only required for mail filings).
 

Troubleshooting

Q: I don't have access to the Close and Create buttons. What should I do?

A: The action item workflow may not be set up correctly. Contact Vantaca Support to configure the action item with the appropriate additional actions ("Generate [1099/1098] Export Data" and "Send 3rd Party [1099/1098]").
 

Q: My 1099 provider/association won't close. Why?

A: The total payment amount may be less than $600, which does not need to be reported. Only amounts of $600 or more require 1099 reporting.
 

Q: My 1098 mortgage record won't close. Why?

A: Verify that all required information is present:

• The association has a valid EIN
• All homeowners in the 1098 Owners tab have an SSN or EIN
• The mortgage interest amount is greater than $0
• Send 1098 is enabled for the association



Q: The action item status shows an error message. What should I do?

A: Click the View in Nelco link to see specific error details. Common errors include:

• Invalid or missing tax identification numbers
• Incorrect address formatting
• Missing required fields
• Duplicate submissions

After correcting errors in Vantaca, reopen the closed records, make corrections, and repeat the Close and Create process to generate a new export file.



Q: How do I check the status of my Nelco submission after filing?

A: Log in to the Nelco portal directly or use the View in Nelco link from your action item. Navigate to the Form Filing History page to view all submitted jobs and their current status.



Q: Can I submit both 1099 and 1098 forms in the same Nelco order?

A: No. 1099 and 1098 forms are processed through separate workflows and separate action items. Complete the process for each form type independently.
 

Q: What happens if I need to make corrections after sending data to Nelco?

A: For 1099 forms, contact Nelco support to discuss correction options. For 1098 forms, use the Reopen function to reopen the closed mortgage record, make corrections, and resubmit. See the "1098 Mortgage Interest Reporting" article.

Q: Why did my 1098 submission fail with a country code validation error?

A: When a homeowner's mailing address is the same as their property address, Vantaca automatically includes the country code in the submission to meet Nelco's validation requirements. However, when the mailing address differs from the property address, Vantaca excludes the country code field to prevent validation errors. If you encounter country code errors, verify that the homeowner's address information (both mailing and property addresses) is complete and accurate in Vantaca, then regenerate and resubmit the 1098 file.
 

Q: I'm having trouble logging into Nelco. Who should I contact?

A: Contact Nelco directly for login assistance at 800-266-4669.

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