17184: 2021.04.08 - Drake20 Updates

Arizona Update 21

• Individual Package:
  • A checkbox has been added to the AZ Screen 1, to allow returns to follow the federal ARPA and exclude up to 10,200 of unemployment and still E-file. AZ has not yet made a decision if they will conform. Returns filed with the exclusion of unemployment will need to be amended if AZ does not conform to the ARPA. 
  • The due date for filing Form AZ-1040 has been extended to May 17, 2021, following the new federal Individual tax due date.
  • Error message 0267 has been disabled, Note 19 will now generate when itemizing. 

Federal Update 21

• The correct statement number reference will now be printed on the Net Operating Loss Carryover worksheet. (Wks NOL)
• Section 1.263(a)-1(f), de minimis safe harbor election, now uses pricing number 286 and is produced in "Sets," as expected. Prior to this update, the election statement used pricing number 1003 and was not available in any set.

1041 Update 26

• An entry on line 6, "Section 199A(g) deduction," of the federal PATR screen will now flow as intended to line 38, "DPAD under section 199A(g)," of federal Form 8995-A, Qualified Business Income Deduction.

1040 Update 38

• The unemployment compensation exclusion will no longer be factored into the calculation of estimated payments when making adjustments to the ES worksheet.
• An update corrects a potential error in the computation of the Self-Employed Health Insurance deduction for the spouse. Prior to this update, the program erroneously computed a SEHI deduction for the spouse if, on screen 95A, the same amount was entered in column C as in column A, the monthly amounts did not add up to the "Annual Totals" in each column due to rounding, and the spouse that was getting the SEHID.
• If there is an amount on line 4g of Form 4952, the program will now use the Schedule D Tax Worksheet (WK_D) instead of the Qualified Dividends and Capital Gain Worksheet (WK_CGTAX). Any returns with qualified dividends, no capital gains, and Form 4952 should be reviewed for accuracy.
• The spouse's name will now be generated as intended on Form 1040-X returns when the filing status is Married Filing Separately (MFS). The name of qualifying dependents--who are not children of the taxpayer--will now be generated as intended on Form 1040-X returns when the filing status is either Head of Household (HOH) or Qualifying Widow(er) (QW).
• An update allows a return with a forward slash ("/") in the taxpayer's street address to be transmitted when the return is e-filed.
• An error that sometimes caused the last letter from the "Name" field on screen 99M or 99N to be printed in the"“Employer ID Number (EIN)" box on Schedule C has been corrected.
• Charitable deductions will no longer flow to line 10b of Form 1040-NR unless the taxpayer is a Student Apprentice from India and is not forced to itemize. Prior to this fix, 1040-NR returns with less than $250 of total effectively connected income (line 9), that also had charitable contributions entered on screen A, would allow charitable contribution amounts to flow to line 10b of Form 1040-NR.

Kentucky Update 18

• Individual Package:
  • The "Deceased" check boxes on Form 740, Individual Income Tax Return, will now be marked as appropriate when a "Date of death" is entered on federal screen 1. 
  • The program will now select automatically the most advantageous filing status, as expected, when a filing status is not entered on KY screen 1. Prior to this update, the KY Result form was calculating a higher refund than expected for filing status "married filing separate combined" when the KY WKMP, Qualified Mortgage Insurance Premiums Worksheet, was present.
  • Line 16, "Other Income," on page 4 of Form 740-NP, Kentucky Individual Income Tax Return Nonresident or Part-Year, will now be calculated as expected when both UCE and other miscellaneous income are present on line 8, "Other income," of federal Schedule 1. Prior to this update, other income may not have been included in the federal column when UCE was calculated on the federal return.
  • Alignment has been adjusted for section E of Form 725, Kentucky Single Member LLC Individually Owned Income and LLET Return.

Michigan Update 17

• Individual Package
  • Form MI-1040CR7, Home Heating Credit Claim, will now be marked as Amended when indicated in data entry.
  • MI Schedule 1, Additions and Subtractions, has been updated and will no longer automatically subtract accrued interest from line 10, "Income from U.S. government bonds," allowing the preparer to adjust line 10 as needed on MI screen 2.

Minnesota Update 12

• Individual Package
  • The due date has been updated to 5/17/2021 for Form 60PV, Individual Income Tax Payment Voucher.
  • Only MN-sourced unemployment amounts, as excluded federally, will now be included in MN part-year returns on lines 8, "Other income," and 14, "Federal adjustments from Schedule M1NC," of Schedule M1NR, Nonresidents/Part-Year Residents.

1065 Update 25

• Return Note 031 is now generated when the "Prevent adjustments from flowing to K-1, Section L" check box is marked on federal screen M1, providing additional guidance to preparers in stating that potential adjustments may be needed on line 3, "Net income (loss) per books," on federal screen M2. An entry made on line 3 adjusts the "tax basis" amount on line 9, "Income (loss)," of Schedule M-1 on federal Form 1065.
• Special allocation amounts reported on federal screen 3468 will now be allocated to the appropriate partner, as expected.

North Carolina Update 13

• Individual Package:
  • Federal unemployment compensation exclusion amounts will no longer be included in column A, line 15, "Other income," of Schedule PN (D- 00), Part-Year Resident and Nonresident Schedule.
• Corporation Package:
  • A parse error on element "AffiliatedIndebtedness" has been resolved for Form CD-405, C Corporation Tax Return.

New Mexico Update 7

• Individual Package:
  • The "1a" check box on line 1 of Form PIT-B will now be marked when line 16, "New Mexico income," of Form PIT-110 is "0" (zero).

Nevada Update 1

• Corporation Package:
  • The question "Does your business hold, acquire, lease, or dispose of any real property located in Nevada?" on page 2 of the Nevada Commerce Tax Registration Form for Business Entities will now be populated as intended based on NV screen NVQ2 data entry.

Ohio Update 24

• Individual Package:
  • Data will no longer flow to Ohio Generic City returns when "0 - Suppress City" is selected from the "City" drop list on applicable federal screens.
  • Printing has been updated for Form IR-25, City Income Tax Return for Individuals.
  • RITA Form 10A, Application for Municipal Income Tax Refund, will now appear as intended with the RITA return in View/Print mode. Prior to this update, RITA Form 10A would be generated in the "Ohio Generic City" return folder.
  • An update prevents reject "DRKPARSE" for element "W2LocalityInfo", "BusinessNameLine1", "EmployersAddress", "TaxWithheldLocalityName", "TaxpayerScheduleofWages."
  • An update prevents reject "R23.1" for Generic Ohio City returns.
  • EF Message 0160 has been updated to include the cities of Brookeville and New Philadelphia, preventing reject "R14.1."
  • Income from federal Form 4835, Farm Rental Income and Expenses, will now flow as expected to line 5, "Other taxable income," of the Ohio Generic City return.

General Program Update 35

• General program update.

Pennsylvania Update 19

• S Corporation Package:
  • Line 2e on Section II of Form PA-20S/PA-65, PA S Corporation/Partnership Information Return, will now be populated as intended when PA nonresident Schedules K-1 are present in the return.
• Individual Package:
  • EF Message 0018 has been added to the program, preventing reject "PA40-018"; this message will now be generated when the total payments and credits on an amended PA return equal the amount of PA liability and there is a refund amount present. Returns meeting the aforementioned conditions must be paper-filed.
  • EF Message 0228 has been added to the program and will now be generated when the preferred payment method is direct debit but not Requested payment date" has been entered on federal screen PMT for the following forms:
  • PA-40, Pennsylvania Income Tax Return
  • Schedule PA-40X, Amended PA Personal Income Tax
  • REV-276, PA Extension Payment Voucher
• Individual, Corporation, S Corporation, and Partnership Packages:
  • EF Message 401 has been added to the program and will now be generated when the payment method for a balance due is direct debit and no "Requested payment date" has been entered on the PMT screen for Form BIRT, City of Philadelphia Business Income & Receipts Tax.
• Philadelphia:
  • Individual, Corporation, S Corporation, Partnership, and Fiduciary Packages:
    • An erroneous direct debit payment amount will no longer be generated in the transaction summary when the following conditions are met:
    • The check box "Elect to e-file a BIRT/BIRT-EZ using 'No Tax Liability' Treatment" is marked on PA screen BIRT
    • The check box "Elect to calculate income using Method I (Schedule A)" is marked on PA screen BIRT
    • Either "A" or "PLB" is selected from the "State/city selection" drop list on federal screen PMT

1120 Update 24

• An update prevents parse errors associated with the incorrect production of Record of Estimated Tax Deposits on Form 4466.(RecordOfEstimatedTxDepositsGrp)