17125: 2021.02.26 - Drake20 Updates

Alabama Update 8

• Corporation Package:
  • Electronic filing has been approved for the AL corporation package.
• Individual Package:
  • Business rule reject "AL40OC-110" has been resolved when Schedule CR, Credit for Taxes Paid to Other States, results in zero ("0") credit.
  • Worksheet ALCCLMWK, for applying Charitable Deduction limits, has been updated to the latest version.
    
• Individual, S Corporation, Partnership, and Fiduciary Packages:
  • EF Message 1702 will now generate correctly when filing a short-year return.
    

Federal Update 13

• General program update.

General Program Update 5

• Daily Wait Time Status link added to Submit Jobs tab in GruntWorx.
  

District of Columbia Update 11

• Corporation and S Corporation Packages:
  • The override explanation for Schedule D, Taxes, on page 3 of Form D-20, SUB Corporation Franchise Tax Return, will now generate as expected.
    

1041 Update 17

• The election to apply Section 172(b)(3) under Revenue Procedure 2020-24 relinquishing the carryback period for Net Operating Losses from 2018 and 2019 and carrying those losses forward - can now be made using check boxes in the "NOL" section of the ELEC screen.
• A Return Note has been added in regard to the replacement of the prior Domestic Production Activity Deduction on Form 8903 with the new Section 199A(g) Deduction on Form 8995-A.
  

1040 Update 25

• If more than one K199 screen is pointed to a single K-1, and that K-1 has Section 179 or unreimbursed partnership expenses, those expenses will only be deducted from the income shown on the first K199 screen. Prior to this update, these expenses were being duplicated in the QBI calculation.
• EF Message 5517 will now only display when expected.
• Federal Form 1040-X has been updated to the latest IRS version. The year "2020" will now be generated on the form when doing a current-year amended return.
• Republic Bank will now allow a "cell" phone number in place of an "evening" number.
• Taxable retirement account distributions that are reported on Form 8915-E, as well as the $300 above the line deduction for charitable contributions, will now be included as expected on the modified adjusted gross income worksheet for line 7, "Enter modified adjusted gross income," of Form 8582.
• The election to apply Section 172(b)(3) under Revenue Procedure 2020-24 relinquishing the carryback period for Net Operating Losses from 2018 and 2019 and carrying those losses forward - can now be made using check boxes in the "NOL" section of the ELEC screen.
• A Return Note has been added in regard to the replacement of the prior Domestic Production Activity Deduction on Form 8903 with the new Section 199A(g) Deduction on Form 8995-A.
• Federal Form 7202 and the Deferral worksheet will now be included on the 1040-X amended return.
  

Kentucky Update 9

• Individual Package:
  • Values on KY screen COMP will now be displayed as intended when the KY filing status is Married Filing Separately Combined and the standard deduction is taken.
• Corporation Package:
  • An update prevents reject "F720-0052 - Form 720, Part I, line 43 should be equal to 720 Part I, line 41 less line 42" on KY Form 720, Corporation Income Tax and LLET Return.
  • An update prevents reject "F720-0079 - when Part I, line 21 should equal the sum of Part I, Lines 1 through 20" on KY Form 720, Corporation Income Tax and LLET Return.
  • An update prevents reject "F720-0082 - when Part I, line 40 should equal the sum of Part I, line 21 less the sum of line 22 through 39" on KY Form 720, Corporation Income Tax and LLET Return.
• S Corporation Package:
  • An update prevents reject "DRKPARSE" for element "http://www.irs.gov/efile:CityType" when an invalid character has been entered.
  • The box "Kentucky Nonresident Income Tax Withholding on Distributive Share Income Report and Composite Income Tax Return" on line D of Schedule K-1 (Form PTE), Owner's Share of Income, Credits, Deductions, Etc., will now be marked as expected.

Massachusetts Update 8

• Individual Package:
  • The line "Interest and dividend income reported on U.S. Sch C lines 1 and 4," has been added to MA screen C.
    

Michigan Cities Update 9

• City of Hudson:
  • Form HU-1040-ES, City of Hudson Declaration of Estimated Income Tax, has been updated and is now available.
    
• City of Lapeer:
  • Form 1040PV, Income Tax Return Payment Voucher, will now be generated for City of Lapeer returns with a balance due.
    

Minnesota Update 7 

• Individual Package
  • A TSJ code field has been added to MN screen KSNC for distinguishing between taxpayer and spouse shares of received K1s.
  • The taxpayer's last name will now be displayed on Schedule M15, Underpayment of Estimated Tax.
  • Filing instructions for e-filed MN returns will no longer provide information relevant only to paper-filed returns.
  • MN resident gross income will now be shown on the 2020 State Tax Comparison form as expected.
  • Line 4c, "Enter the smaller of," on the MN 2441 Worksheet for Child Born in 2020 can no longer be negative, resolving business rule reject 0762.
  • The spouse's name will now be displayed on the intended line when the filing status is Married Filing Separately on Form M1, Individual Income Tax Return.
    

Montana Update 10

• Individual Package:
  • Programming updates have been made for the Itemized Deduction Schedule on page 7 of Form 2, Montana Individual Income Tax Return, when federal self-employed health insurance is included in the tax return.
  • The program will now function as expected when the amount entered on line 11, "Gifts by cash or check (60% AGI limitation)," on federal screen A is less than 300 and there is also an entry in the "30% limitation" field.
  • The following worksheets are now available for printing:
    • Amended Return Reconciliation (MTAMD)
    • Credit Carryovers (MTCREDAT)
    • Credit Carryover Attachment (MTCRATT)
      

1065 Update 16

• A program update prevents parse errors associated with invalid data entered on federal screen K1. (SchK1OtherIncomeLossCd)
• A Return Note has been added in regard to the replacement of the prior Domestic Production Activity Deduction on Form 8903 with the new Section 199A(g) Deduction on Form 8995-A.
• The selected rental enterprise description will now be generated as expected on the WKS QBI and K1 WKS QBI statements when a "QBI Safe Harbor" election for rental property has been made on federal screen 8825.

North Carolina Update 8

• Individual Package:
  • The following forms have been approved and activated for printing
    • RO-1033, Installment Agreement Request
    • NCES_WK, Worksheet for Computation of N.C. Estimated Income Tax
• Fiduciary Package:
  • Parse errors for elements "Header" and "NameAndAddress" have been resolved for Form D-407, Estates and Trust Income Tax Return.
  • EF Message 0224 will now be generated only when the ID numbers entered on NC screen 3 do not match the ID numbers entered on federal screen K1.
    

New York Update 12

• Individual Package:
  • Invalid SSNs entered on federal screen 2 will now be generated as entered on the respective Form IT-201, Resident Income Tax Return, or IT-203, Nonresident and Part-Year Resident Income Tax Return.
  • Form IT-216, Claim for Child and Dependent Care Credit, will now be generated for a dependent whom is over the age of 13 and disabled if the check box "Disabled" is selected for the dependent on federal screen 2. Prior to this update, a code of "NYD" was required in the field "State codes" on federal screen 2 to claim the credit for the qualifying individual.
    
• S Corporation Package:
  • NY screens NOLD and NOL2 have been redesigned for ease-of-use purposes. No calculations were affected by this update.
  • e-File has been activated for the following forms:
    • NYC-3L, General Corporation Tax Return
      
    • NYC-4S, General Corporation Tax Return
    • NYC-4SEZ, General Corporation Tax Return
    • NYC-EXT, Application for Automatic Extension of Time to File Business Income Tax Returns
  • EF Message 0654 has been removed from the program
• Tax-Exempt Package:
  • The check box "All additional IRS Form 900 Schedules, including Schedule B, (Schedule of Contributions) Schedule B of public charities is exempt from disclosure and will not be available for public review" on NY Form CHAR500, Annual Filing Checklist, will now be marked automatically when federal Schedule A is present in the return.
• Individual and Partnership Packages:
  • The calendar year-end date will no longer be generated in the field "For calendar year 2020 or tax year beginning and ending" on Form T-204-LL, Partnership, LLC, and LLP Filing Fee Payment Form.
  • The intended taxpayer or spouse SSN will now be generated as intended in the "Identifying number as shown on return" field on Form IT-212, Investment Credit.
• Individual and Fiduciary Packages:
  
  • EF Message 0323 will no longer be generated for the following forms when Form IT-217, Claim for Farmers' School Tax Credit, is present in the return:
  • IT-201, Resident Income Tax Return
  • IT-203, Nonresident and Part-Year Resident Income Tax Return

• The watermark will no longer appear on Forms IT-201 and IT-203 when Form IT-217 is present in the return.
  
• Corporation and S Corporation Packages:
  • As per the latest NY instructions, the modification code "A-213" is no longer valid for Form CT-225, New York State Modifications; likewise, code "A-511" is now a valid entry. The modification code drop lists on NY screen 225 have been modified to reflect this change.
  • General programming updates to adhere to the latest e-file rules and regulations released by NYC.
  • Interest rates have been adjusted for Form NYC-222, Underpayment of Estimated Tax by Business and General Corporations, to align with the latest NY City Rates chart; additionally, the number of days in the year has been changed from 366 to 365.
• Individual, Partnership, and Fiduciary Packages:
  • The e-signature fields for NYS and NYC Forms 579 have been activated.
  • Signature dates and signature names will now be generated only when the respective setup options are enabled from: Setup > Options > States > NY:
  • Print signature dates on Form TR-579
  • Enable Alternative Signature option (Individual only)
  • The following forms have been approved by the NYS DoTF and are now available for printing:
    • IT-204, Partnership Return
    • IT-204.1, NY Corporate Partners' Schedule K-1
    • IT-204-IP, NY Partner's Schedule K-1
    • IT-204-CP, NY Corporate Partner's Schedule K-1
  • The following forms are now available for printing BUT are still awaiting official approval from the NYS DoTF. A watermark will continue to be printed on these forms until official approval has been granted.
    • IT-225, NYS Modifications
    • IT-558, NYS Adjustments due to Decoupling from the IRC
      

Ohio Update 14

• Individual City Package:
  • An update prevents reject "DRKPARSE" for element "PreviousAddress", "TaxWithheldLocalityName", and "Preparerinformation."
  • An update prevents e-file for OH Generic City returns for the city of Gibsonburg, as the city is no longer accepting e-filed returns.
  • Line 23, "Overpayment Applied From 2020," on the OH Generic City Income Tax Return will now be calculated automatically when the line 20 check box, "Apply overpayment to 2021," is marked on the "Income" tab of OH screen GEN.
  • An update prevents reject "R23.1.",
  • An update no longer allows e-file for Ohio Generic City Income Tax returns if the taxpayer is a part-year resident of the city of Middletown, as Middletown does not allow part-year resident returns to be e-filed.
• All Packages:
  • An update, which changes the Tax Credit percentage for OH Generic City returns for Timberlake, prevents reject "F37-SECTB-110."

General Update 26

• General program update.
  

1120 Update 16

• The literal "Specified Cooperative Section 199A(g)" will now print across the top of Form 8903, Domestic Production Activities Deduction. 
• Form 8903 is used to calculate a 199A(g) deduction for a specified agricultural or horticultural cooperative and must be attached to Form 1120-C, U.S. Income Tax Return for Cooperative Associations.

1120S Program Update 16

• A Return Note has been added in regard to the replacement of the prior Domestic Production Activity Deduction on Form 8903 with the new Section 199A(g) Deduction on Form 8995-A.
  

South Carolina Update 5

• Individual, Corporation, S Corporation, and Fiduciary Packages:
  • The following forms have been approved and can now be printed:
    • SC2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts
    • SC2220, Underpayment of Estimated Tax by Corporations
      

Wisconsin Update 10

• Individual Package:
  • Reject "F1-090" will no longer be produced when Form 804, Claim for Decedent's Wisconsin Income Tax Refund, is present in the return and the applicable check box on Form 1, Wisconsin Income Tax, is not marked.
  • A parse error on the element "OwnershipPercent" has been resolved where the value "1.0000000" is entered for the ownership percentage type on the Schedule H Property Tax bill.
  • A parse error on the element "TypeOfLicense" has been resolved where an invalid driver's license is entered as identification.
  • WI taxpayers may now exclude from income the forgiveness of debt on Paycheck Protection Program (PPP) loan proceeds and deduct expenses paid with PPP loan proceeds that are otherwise deductible.
  • This change is due to WI adopting the federal law regarding the tax treatment of income and expenses relating to the original and subsequent Paycheck Protection Programs.
  • Earned Income Credit (EIC) calculations have been updated to reflect Wisconsin recently adopting federal tax law, which allows taxpayers to elect to use their 2019 earned income to compute their 2020 federal and Wisconsin Earned Income Tax Credits.
  • A parse error on the element "NetFarmLoss" has been resolved where the value input is not a positive number.
• S Corporation Package:
  • A parse error on the element "OtherAdditions" has been resolved for an invalid amount entered on line 3, "Other additions," of Schedule 5M on page 5 of Form 5S, Wisconsin Tax-Option (S) Corporation Franchise or Income Tax Return.
• Corporation and S Corporation Packages:
  • Form U, Underpayment of Estimated Tax by Corporations, has been updated to align with updates made to federal Form 2220, Underpayment of Estimated Tax by Corporations, stating that any estimated payment due on or after April 1, 2020 and before July 15, 2020 has been extended to July 15, 2020 as a result of the COVID-19 pandemic.
• S Corporation and Partnership Packages:
  • WI taxpayers may now exclude from income the forgiveness of debt on Paycheck Protection Program (PPP) loan proceeds and deduct expenses paid with PPP loan proceeds that are otherwise deductible. This change is due to WI adopting the federal law regarding the tax treatment of income and expenses relating to the original and subsequent Paycheck Protection Programs.
    
• Fiduciary Package:
  • A parse error on the element "TaxForm" has been resolved where "PW1" is incorrectly entered as the tax form type.
    
  • A parse error on the element "AddressLine1Txt" has been resolved for an invalid street address.