17071: 2021.01.23 - Drake20 Updates

Arizona Update 6

• Individual Package:
  • Check boxes for "Contribution deducted on federal Schedule A as a Charitable deduction." and "Contribution deducted on federal Schedule A as a tax payment," have been added to the following AZ screens:
    • 321
    • 322
    • 323
    • 331
    • 335
    • 340
    • 348
    • 352
  • Arizona requires an adjustment to AZ Schedule A for the credit when the amount has been used on the federal Schedule A. If the check box is marked on one of those AZ screens, the AZ Schedule A will be adjusted.
  • EF Message 0145 will now be generated only if line 25, "Federal adjusted gross income," of either Form 140PY, Arizona Part-Year Personal Income Tax Return, or Form 140NR, Nonresident Personal Income Return, does not match the federal AG on line 11 of Form 1040.

Federal Update 5

• General program update.

California Update 7

• Individual Package:
  • CAWK_A, Proforma schedule A worksheet, has been updated to reduce the amount of federal charitable contributions by the amount of charity used on the federal return for the Standard Deduction of Cash Charitable Contributions.
  • An update prevents rejects "SCHCA/NR-062" and "SCHCA/NR-064." 
  • An update prevents parse error for elements "JanuaryCalculation" "FeburaryCalculation", and "OctoberCalculation" having incomplete content. 
• Individual and Fiduciary Packages: 
  • The following forms have been approved, and the "Taxpayer Copy Only" banner has been removed:
    • Form 3805P, Additional Taxes on Qualified plans (Including IRAs) and Other Tax-Favored Accounts
    • Form 3805V, Net Operating Loss (NOL) Computations and NOL and Disaster Loss Limitations - Individuals, Estates, and Trusts - Form 540NR, California Nonresident or Part-Year Resident Income Tax Return
    • Form 5805, Underpayment of Estimated Tax by Individuals and Fiduciaries.

General Update 2

• General program update.

1041 Update 7

• Schedule H is now available, and the watermark has been removed.
• The Schedule D Tax worksheet for Form 1041 has been updated to reflect the correct amount on line 17b. Prior to this update, last year's limit was being used.

Hawaii Update 1

• Individual Package:
• Line 52, "Balance due (refund) with amended return," of Form N-11, Individual Income Tax Return Resident, is now calculated as applicable when there is neither a balance due nor refund on the corrected return. 
• Corporation and S Corporation Packages:
• e-File has been activated for the following forms:
• Form N-30, Corporation Income Tax Return
• Form N-35, S Corporation Income Tax Return 
• All Packages:
• Form N-344, Important Agricultural Land Qualified Agricultural Cost Tax Credit, has been updated to the latest version, including edits to print positioning. 
• The following forms have been approved and can be printed:
• Form N-20, Partnership Return of Income
• Form N-330, Credit for School Repair and Maintenance
• Form N-342, Renewable Energy Technologies Income Tax Credit
• Form N-40 Schedule K-1, Beneficiaries Share of Income, Deductions, Credits, Etc.
• Schedule D-1, Sales of Business Property
• Form N-158, Investment Interest Expense Deduction
• Schedule X, Tax Credits for Hawaii Residents
• Form N-35, S Corporation Income Tax Return,
• Preparer representatives entered on federal screen 2848, Power of Attorney, will now be used on HI Form N-848, Power of Attorney, when entered. 
• Form N-325, Historic Preservation Income Tax Credit, has been added to the program.

1040 Update 13

• Schedule H is now available, and the watermark has been removed.
• Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, is now available, and the watermark has been removed.
• For taxpayers with ITINs that are claiming the Additional Child Tax Credit (ACTC) and have an entry for “Prior-year earned income” on screen 8812, the software will now use automatically the more beneficial of either 2019 or 2020 earned income to give the taxpayer the most credit possible. Prior to this update, the ACTC was not always optimized for returns with ITINs and a “Prior-year income” amount on screen 8812. Preparers should review any previously filed returns that meet these criteria to ensure the ACTC is maximized.
• An EF Message prevents the following parse error: “The element 'OtherPersonInformationGrp' in namespace 'http://www.irs.gov/efile' has incomplete content. List of possible elements expected: 'RelationshipDescriptionTxt' in namespace 'http://www.irs.gov/efile.'” “[OtherPersonInformationGrp]
• Charitable contributions from line 10b of Form 1040 will now be displayed on the “Other adjustments” line of the Comparison Worksheet.

Michigan Update 4

• Individual Package:
  • A parse error on 'NoUBADisbursementCdSubmit' has been resolved. 
  • A parse error on 'OtherAdjustments' has been resolved when the federal above-the-line charitable contributions deduction is present and included as an adjustment to household resources on MI Forms 1040-CR, Michigan Homestead Property Tax Credit Claim, MI 1040-CR7, Michigan Home Heating Credit Claim, and MI 1040-CR2, Michigan Homestead Property Tax Credit Claim for Veterans and Blind People.
  • MI Worksheet for Line 26 of Schedule 1 (MISEN_WK) has been updated to reduce the maximum capital gains, dividends, and interest deduction by the amount on line 19 of federal Schedule R, Credit for the Elderly and Disabled, taken as deduction on Schedule 1, line 21. 
  • The optional PDF attachment "FedSchR.PDF" is obsolete and has been removed from MI screen PDF, Optional PDF Attachments. MI worksheet Schedule R, Credit for the Elderly and Disabled (MIWKSCHR), will be required as an attachment automatically when present in the return. 

1065 Update 6

• The following forms are now available, and the watermark has been removed:
  • Form 8824, Like-Kind Exchanges
  • Form 8609, Low-Income Housing Credit Allocation and Certification
  • Form 8609-A, Annual Statement for Low-Income Housing Credit
• Amounts entered by clicking the “QBI SA” allocation link on line 1, “Ordinary business income (loss),” of screen K will now be allocated to the “ordinary income” line of the K1 QBI statement as expected. Prior to this update, information entered via the “QBI SA” link was ignored.

North Carolina Update 3

• Individual Package:
  
  • The Use information from federal 2848 check box on NC screen POA now functions as intended to produce NCDOR GEN-58, Power of Attorney and Declaration of Representative.
• All Packages:
  • The following forms have been approved and can be printed: 
    • NC-478, Summary of Tax Credits Limited to 50% of Tax
    • NC-478G, Tax Credit Investing in Renewable Energy Property
    • NC-478L, Tax Credit Investing in Real Property
    • D-400 Sch PN, Part-Year Resident and Nonresident Schedule
    • CD-419, Application for Corporate Income Tax Extension
    • CD-V, Franchise Tax Payment Voucher
    • D-407TC, Estates and Trust Tax Credit Summary
    • D-410, Application for Extension for Filing Individual Income Tax Return
    • CD-V, Corporate Income Tax Payment Voucher 
• Partnership Package:
  • EF Message 0156 no longer prevents Form NC-403, Partnership Income Tax Return, from being e-filed.

Nebraska Update 2

• Corporation Package:
  • Installment due dates have been updated per the NE DoR.
  • Form 4466N, Corporation Application for Adjustment, has been updated to the latest version. Amongst other changes, line 8, "Estimated Property Tax Incentive Act Credit," has been added to the form for tax year 2020.
• Individual, Corporation, S Corporation, Partnership, and Fiduciary Packages:
  • The following forms have been approved by the Nebraska Department of Revenue and are now available for printing:
    • Form NENOLC, Corporation Net Operating Loss Worksheet.
    • Form 1065-N Sch K-1N, Partner's Share of Income, Deductions, Modifications and Credits.
    • Form 1120-SN Sch K-1N, Shareholder's Share of Income, Deductions, Modifications, and Credits.
    • Form 1041N Sch K-1N, Beneficiary's Share of Income, Deductions, Modifications, and Credits.
    • Form NE2441, Child and Dependent Care Expenses.
    • Form NE1040ES, Estimated Vouchers.
    • Form NE1040EB, Purchase of a NE Residence in a Designated Extremely Blighted Area Credit.
    • Form NE1065V, Payment Voucher for Partnerships.
    • Form NE3800M, Advantage Microenterprise Tax Credit Act Claim Worksheet.
    • Form NEES, Individual Estimated Income Tax Worksheet.
    • Form NENFC, Statement of NE Financial Institution Tax Credit.
    • Form NECDAA, Community Development Assistant Act Credit Computation.
    • Form NE4868, Extension for Individual.
    • Form NE4797, Special Capital Gains/Extraordinary Dividend Election and Computation.
    • Form NE2210, Underpayment of Estimate Tax
    • Form NE1120S, S Corporation Income Tax Return
    • Form NE1065, Return of Partnership Income
    • Form NE1040V, Payment Voucher for Individual
    • Form NENOL, Net Operating Loss Worksheet, Tax Years 2018 and After.
    • Form NENOL, Net Operating Loss Worksheet, Tax Year 2017
    • Form 1041N ESBT Worksheet, Electing Small Business Trust Tax calculation Worksheet.
    • Form NOL, Net Operating Loss Worksheet Tax Years 1988 through 2016.
    • Form 4466N, Corporate Application for Adjustment
    • Form 1041N-ES, Fiduciary Voluntary Estimated Income Tax Payment Voucher.
    • Form 1041N, Fiduciary Income Tax Return.

Ohio Update 6

• Individual Package:
  • OH Form IT 1040 has been approved by the state and can now be printed.
  • Federal educator expenses now flow to line 33 of OH Schedule A if the federal amount is more than $250. This is limited to a maximum of $250 per qualifying OH educator in excess of the federal deduction. Prior to this update, OH educator expenses were entered directly on OH screen 2.

General Program Update 12

• The AMT amount will now be carried over from the previous tax year to the correct line of screen 1116.

Pennsylvania Update 4

• Individual Package:
  • PA amounts entered in the "2021 Estimated Taxes to be Paid for Next Year" section under "State and City" on federal screen ES will now be reported, as expected, on line 15, "Credit Taxpayer/Spouse," of Form CLGS-32 (PA LOCAL), Taxpayer Annual Local Earned Income Tax Return, with the check box "Credit to Next Year" marked.
  • PA screens OPT and FAQ have been updated to include information on federal Form 1099-NEC.
• Individual, Corporation, S Corporation, Partnership, and Fiduciary Packages - Philadelphia:
  • An amount entered in the "Method II" override field on Philadelphia screen BPT will no longer also be reported as "Method I" income (line 2) on Form BIRT-EZ, Business Income & Receipts Tax. Returns affected by this update that have already been mailed to the Philadelphia Department of Revenue must be amended in order to receive a greater refund or lesser tax due.
• S Corporation and Partnership Packages:
  • Incorrect state EINs will no longer be carried to the e-File transmission record, preventing reject "008."
  • The client results letter and Transaction Summary worksheet have been updated to display the intended estimated payment amounts when an applied refund over payment partially offsets the full estimated payment amount.
• Multiple Packages:
  • Updates to the Pennsylvania form POA, Power of Attorney, now report multiple authorized representatives from the Federal form 2848.
• Individual, S-Corporation, Partnership and Fiduciary Packages
  • The following form has been approved for paper-file:
    • PA Rev 276, Application for an automatic extension to file.

1120 Update 7

• The following forms are now available, and the watermark has been removed:
  • Form 8824, Like-Kind Exchanges
  • Form 8609, Low-Income Housing Credit Allocation and Certification
  • Form 8609-A, Annual Statement for Low-Income Housing Credit
• If line 26 of Schedule K is "Yes," the amounts entered for "Vote" and "Value" on line 26 of federal screen K must equal at least 50%, and both fields must have an entry. If the "Vote" or "Value" field does not have data entered, an EF Message will be produced, preventing e-file until a correction is made. If data is entered in both fields but the total is less than 50%, "No" will be generated for line 26 of Schedule K, and a Return Note will produce to alert the preparer of the functionality. 
• Line 34, "Form 2220 penalty," of federal screen J and lines 9-15 of federal screen H will now be rounded to the nearest whole number. This change will not affect the print of any form in View/Print mode. 
• The eSign feature will now produce the signature fields as expected.

1120S Update 6

• The following forms are now available, and the watermark has been removed:
  • Form 8824, Like-Kind Exchanges
  • Form 8609, Low-Income Housing Credit Allocation and Certification
  • Form 8609-A, Annual Statement for Low-Income Housing Credit
• The eSign feature will now produce the signature fields as expected.

General State Update 8

• General Programming Update

990 Update 7

• Forms 8609 and 8609-A are now available, and the watermarks have been removed.
• The estimated payment due dates for the first two quarters of 2021 will now appear in the 990 client results letter, as expected.