17117: 2021.02.20 - Drake20 Updates

Alabama Update 7

• Individual Package:
  • Business rule reject AL40-317 has been resolved when casualty and theft losses flow from the federal return to AL Schedule A, Itemized Deductions, line 19.
  • EF Messages and programming changes prevent and resolve business rule rejects AL40OC-140 and AL40OC-105 when other state AGI exceeds AL AGI in the other state tax credit calculation on AL Schedule OC, Other Available Credits. Other state unemployment compensation and taxable state refunds will no longer be included in the "Portion of Alabama Adjusted Gross Income Attributable to this State" on Schedule CR. These amounts are not taxable to the state of Alabama.
  • Business rule rejects AL40OC-110 and AL40OC-160 have been resolved when there are other states present on the return but the AL return results in $0 tax and $0 "Credit for Taxes Paid to Other States".
  • Form AL2210, Underpayment of Estimated Tax for Individuals, has been updated to the most current version and a watermark has been added to prevent filing, pending additional changes to be made by the AL DoR.
• S-Corporation and Partnership Package:
  • Business rule reject SPtecK1-ALPTEC-010, when Schedule PTE-CK1 has negative share income, has been resolved.
• S Corporation Package:
  • EF Message 0017 will not be produced for returns with "Other expenses" entered in a detail (Ctrl+D) worksheet of federal Schedule F, "Other expenses."
• Fiduciary Package:
  • AL Schedule FC, Fiduciary Credits, has been approved for printing by the AL DoR.

Federal Update 11

• General program update.

1041 Program Update 15

• A program update prevents parse errors associated with invalid data entered on screen ATT2 for the “Present overall method of accounting.” (PresentOverallMethodOfAcctCd)

Georgia Update 4

• Individual Package
  • Section B of Form IT-QEE-TP2, Qualified Education Expense Credit Computation, will now be calculated when line 3 is a negative number. Prior to this update, Section B would be calculated only when the income on line 3 was a positive amount. The percentage limitation on line 4 has also been updated to 5.75.
  • EF Message 59 now requires the agency's name and date of assistance to be entered on GA screen CR2, preventing parse errors on element 'DisasterAssistanceCredit.'
  • When the federal standard deduction plus the above the line contributions on federal Form 1040, line 10b total more than federal itemized deductions, GA will now use the standard deduction amount on page 2, line 11, of GA Form 500, Individual Income Tax Return.

1040 Update 23

• A program update prevents parse errors associated with invalid data entered on screen ATT2 for the “Present overall method of accounting.” (PresentOverallMethodOfAcctCd)
• State-specific carryforward section 179 amounts will now be reported automatically on line 13, "Carryover of disallowed deduction to 2021," of the state worksheet 4562, Depreciation and Amortization, when no values have been entered in the "State (if different)" column on federal screen 4562. 
• When net self-employment tax from a partnership Schedule K-1 is a negative amount, the amount flowing to Schedule SE will now be correct. Prior to this update, in some cases, the loss was added to SE income. 
• When both the taxpayer and spouse file a Form 8915, the PDF attachment will no longer contain two copies of each form.
• Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments, has been updated to the final release of the form.
• Form 8889 will now be automatically produced when there is an amount on line 12 of Form W-2 with a code of “W.” An EF Message will also be generated to notify the preparer to make the necessary entries on the screen to properly report the HSA contribution. 
• The Recovery Rebate Credit will now be displayed as intended on line 15 of Form 1040-X.
• Form 1040-X is now available, and the watermark has been removed.
• The taxpayer's email address must now be entered on federal screen 1 when a NOW bank product is selected and the NetSpend Card is the disbursement method. 
• A program update prevents reject F5695-010-02: “If Form 5695, Line 30 'NonBusinessEnergyCrAmt' has a value greater than 500, then two Forms 5695 must be present in the return.” 
• EF Message 3035 has been added to prevent a B-Ack when an “Exclude here; distribution is reported on” check box is marked on federal screen 1099 and data is entered in the “Rollover Information” section.

Kansas Update 6

• Individual Package:
  • Form K-40, Individual Income Tax, is now able to be e-filed when Form 1040-SR is present in the return.
• Corporation, S Corporation, and Partnership Packages:
  • An update prevents reject "DRKPRSE" for the element "PrincipalLocationinKs" when there is no principal Kansas address.

Maryland Update 8

• Individual Package:
  • The original amount of earned income will now automatically flow to MD screen X when the screen is created.
• Fiduciary Package:
  • The third- and fourth-period interest factors have been adjusted on MD Form 504UP, Underpayment of Estimated Income tax by Fiduciaries.
• Multiple Packages:
  • The MD Department ID Number and Nature of Business will now be printed as expected on MD Form 1, Annual Report, and Form 1, Business Personal Property Tax Return. 
  • The MD Department ID number will also be printed as expected on pages 2 through 4 of Form 1, Business Personal Property Tax Return. 
  • An update prevents reject FORM500UP-41040-010, "Line 4 Estimated Tax Required; If first-time filer, must be equal to Line 2; otherwise must be equal to lesser of Line 2 or Line 3b." 
  • The ERO's firm name and generated PIN will now be printed as expected on Form EL101B, Income Tax Declaration for businesses Electronic Filing.

Michigan Update 8

• Individual Package:
  • MI-1040CR, Michigan Homestead Property Tax Claim, will now be produced when a part-year filer was a resident of Michigan for at least 183 days as entered on MI screen 1. 
  • "Combat Zone" will now be printed at the top of Form MI-1040, Michigan Individual Income Tax Return, when indicated on MI screen 1. 
  • Form MI-2210, Michigan Underpayment of Estimated Income Tax, will no longer be produced for returns where taxable income includes unemployment benefits pursuant to the Michigan Department of Treasury notice dated February 9, 2021.
  • Line 23, "Tier 2 Michigan Standard Deduction," of Schedule 1, Additions and Subtractions, has been updated to allow a Tier 3 taxpayer to claim the Tier 2 deduction if the taxpayer was born in 1953, had aged 67 years as of December 31, 2020, had received benefits from an SSA-exempt employment during 2020, and had retired as of January 1, 2013. 
  • Negative amounts may now be entered on line 11, "Other income," on MI screen NR.
• Fiduciary Package:
  • Line 29, "Taxes imposed on or measured by income deducted on U.S. Form 1041," of Form MI-1041, Fiduciary Income Tax Return, has been updated to be reduced automatically by the amount of taxes deemed deductible on the resident state return.

Minnesota Update 6

• Individual Package:
  • The "Current Home Address" line on MN Form M1, Individual Income Tax, has been adjusted to allow more characters.
  • Line 24, "Subtraction for federal bonus depreciation," of Schedule M1NR, Nonresidents/Part-Year Residents, will now be blank if MN income is below the $12,400 threshold, resolving business rule rejects 0713 and 0714.
  • A parse error for element "SchM1CDHeader" has been resolved for when the qualifying child turns 13 years old during the tax year.
  • When an amount for line 5, "Additional nontaxable income," is present on Form M1PR, Homestead Credit Refund (for Homeowners) and Renter's Property Tax Refund, Schedule M1PR-AI, Additions to Income, will also be generated, resolving business rule reject 0107.
  • To resolve a parse error on 'HouseholdIncome', line 6, "Household income," of Schedule M1ED, K-12 Education Credit, can no longer be negative.
  • If a state of residence is entered in the "Current resident state" section of MN screen NR and "PY" is selected for the "Resident state" on federal screen 1, the other state of residence will now be printed at the top of Schedule M1NR, Nonresidents/Part-Year Residents.
• Corporation Package:
  • EF Message 22 will no longer be generated when no phone number has been entered on the federal PIN screen.

1065 Update 14

• A program update prevents parse errors associated with invalid data entered on screen ATT2 for the “Present overall method of accounting.” (PresentOverallMethodOfAcctCd)

General Update 23

• After using the Split feature on a MFJ return, data present on federal screen 99N with a code of “S” selected from the “TSJ” drop list will now flow to the intended split return.
• Mail-to addresses for Form 1040-X, Amended U.S. Individual Income Tax Return, have been updated to match the latest information received from the IRS.

1120 Update 14

• A program update prevents parse errors associated with invalid data entered on screen ATT2 for the “Present overall method of accounting.” (PresentOverallMethodOfAcctCd)
• State-specific carryforward section 179 amounts will now be reported automatically on line 13, "Carryover of disallowed deduction to 2021," of the state worksheet 4562, Depreciation and Amortization, when no values have been entered in the "State (if different)" column on federal screen 4562.
• A program update prevents parse errors associated with invalid data entered on screen ES for the EFTPS confirmation number. (EFTPSPaymentConfirmationNum)
• Form 1139 is now available, and the watermark has been removed. 

1120S Update 14

• A program update prevents parse errors associated with invalid data entered on screen ATT2 for the “Present overall method of accounting.”
  (PresentOverallMethodOfAcctCd)
• A program update prevents parse errors associated with an invalid short-year reason code entered on screen YEAR. (shortPeriodReasonCd)

South Carolina Update 4

• All Packages:
• The following forms have been approved and can be printed:
• SC 1120-TC, Corporate Tax Credits
• SC 1065, Partnership Return
• SC1040-V, Individual Income Tax Payment Voucher
• SC2848, Power of Attorney and Declaration of Representative
• Individual Package:
• Charitable contributions on line 10b of Form 1040, U.S. Individual Income Tax Return, now flow to line 1 (e), "Other additions to income," on page 2 of Form SC 1040, Individual Income Tax Return. 
• Two-thirds of the amount for Qualified 2020 Disaster Retirement Plan Distributions on Form 8915-E, that is spread over three years, will be added back on line 1 (e), "Other additions to income," on page 2 of Form SC 1040, Individual Income Tax Return. 
• S Corporation and Partnership Packages: 
• Form SC 1120S, S Corporation Income Tax Return, now reports the correct "Number of nonresident shareholders with an I-309 affidavit" and Form SC1065, Partnership Return, now reports the correct "Number of nonresident partners with I-309 affidavit."
• Fiduciary Package:
• EF Message 0170 has resolved a parse error on element 'Preface,' for Form SC1041, Fiduciary Income Tax Return.

990 Update 13

• A program update prevents parse errors associated with invalid data entered on screen ATT2 for the “Present overall method of accounting.” (PresentOverallMethodOfAcctCd)

Tennessee Update 4 

• Individual Package:
  • An update prevents reject code TN250-007: "RequestedPaymentDate cannot be past the extended due date and cannot be used for filing an old period return."

Vermont Update 3

• Individual Package:
  • 2021 Property Tax Adjustment Worksheet amounts have been updated.
  • Printing alignment has been updated for Forms IN-152, Underpayment of Estimated Individual Income Tax, and IN-152A, Annualized Income Installment Method for Underpayment of Estimated Tax by Individual, Estates, and Trusts.,
  • Vermont underpayment worksheets 152 and 152A can now be filed.