17353: 2021.09.02 - Drake20 Updates

Maryland Update 36

• Individual Package:
  • EF Message 0264 is now generated when a selection has been made from either of the following fields on MD screen 1 and no ITIN filers are included in the return, preventing reject "Form502-01730-020":
    • "Number of dependents qualifying for EIC, including ITIN dependents"
    • "Did Not Meet the federal min age requirement or TP/SP is filing with an ITIN and claiming state earned income credit" 
    • Lines 1b, "Earned income," and 29, "Local earned income credit," of MD Form 502, Resident Income Tax Return, are now calculated as expected when the taxpayer does not qualify for federal EIC and an amount is present on line 22, "Earned income credit," of MD Form 502.
  • EF Message 619 is now generated when "301" is selected from either the "502UP Exception - Code No" drop list on MD screen 1 or the "Code Number for MD502UP" drop list on MD screen 2 but no MD Form 502UP, Underpayment of Estimated Income Tax by Individuals, is included in the return, preventing reject "Form505-06300-020."
  • EF Message 261 is now generated when the filing status of MD Form 502, Resident Income Tax Return, is either Married Filing Separately or head of Household and the exemption code "221" is not present on the "Code Numbers" line on page 4 of MD Form 502, preventing reject "Form502-01880-050."
• All Packages:
  • The check box "Check here to indicate that credits are coming from a Pass Through Entity" has been added to MD screen CR1. Marking the check box allows values from line 25, "Biotechnology Investment Incentive Tax Credit," of MD Schedule K-1 (510), Pass-Through Entity Member's Information, to be factored into line 2, "Total Biotechnology Investment Incentive Tax Credit," on Part CCC of MD Form 500CR, Business Income Tax Credits.
  • EF Message 0263 is now generated when the Enterprise Zone Tax Credit does not come from a pass-through entity and the amount on line 15, "Total Enterprise Zone Tax Credit for the current tax year," Part A, of MD Form 500CR, Business Income Tax Credits, does not match the amount on line 1, "Total Enterprise Zone Tax Credit," Part AAA, of MD Form 500CR, preventing reject "500CR- 54444-010."
  • An update prevents MD reject "Form502CR-50460-020."

New Jersey Update 21

• S Corporation Package:
  • Codes "RI" (for "Resident Individual) and "NR" (for "Nonresident Individual") are now generated as expected for the Member "Code" in column A, page 2, of NJ Form PTE-100, Pass-Through Business Alternative Income Tax Return.

Virginia Update 11

• All Packages:
  • Due to VA decoupling from certain CARES Act provisions, fixed date conformity adjustments are now automatically calculated for the following:
  • Excess Loss Limitations IRC 461, allowing excess losses to be deducted for non-corporation filers.
  • Net Operating Losses (NOL). The CARES Act repealed the taxable income limitation for NOLs created after tax year 2017, including the revisions allowing NOLs to be carried back five years.
  • The increase in limitations on business interest from 30% to 50%.