Background

In Drake Tax 2022 (and Drake Tax 2023, prior to February 22, 2024), an itemized indicator was not set as expected for itemized OH returns that were e-filed using Drake Tax. Though no calculations were affected, the OH Department of Taxation did not receive the information needed to identify taxpayers who should receive a Form 1099-G notice, and, as a result, taxpayers with itemized OH returns e-filed using Drake Tax may not receive a Form 1099-G from the state the following year. It is important to note that:

• No calculations were affected for 2022 or 2023 returns.

• State taxable refunds from 2022 were updated correctly to Drake Tax 2023, providing preparers the information needed to calculate any applicable state taxable refunds on 2023 returns.

• As of February 22, 2024, the itemized deductions indicator is being set correctly for 2023 OH returns e-filed using Drake Tax 2023. Returns filed prior to this date may experience a similar issue next year. The software will update the state tax refund, but OH may not have the information needed to send affected taxpayers Form 1099-G.

Drake Software recommends running a report using the Drake Tax Report Manager to identify possibly affected returns, providing awareness and allowing preparers to confirm state taxable refunds for taxpayers.

Creating the Report

The Report Manager allows you to create a new report or edit an existing report. You can also modify the report layout and define filters. To access the Report Manager, from the Drake Tax Home menu bar, select Reports > Report Manager. To build a report identifying itemized OH returns that were e-filed:

1. From the Report Manager window, click New Report.

2. Choose the report type Tax return data. Click OK to open the Report Editor - Step 1 window.

3. Add a Report title and Report description.

4. Use the Select Report Columns section to choose the data to include in the report. The Categories drop list determines what data you can select from the Available columns list. Drake Software recommends adding the following columns for this report:

   • Taxpayer ID

   • Taxpayer First Name

   • Taxpayer Last Name

   • Itemized Deduction

   • State E-Filed

   • State Name

5. Click Next to open the Step 2 window. Beside the Select a report filter drop list, click Edit Filters. The Filter Manager is opened.

6. In the Available Filters section, create a New Filter for this report. Enter a filter name and click OK.

7. With the new filter highlighted in the Available Filters section, choose Add condition.

8. Add the following conditions one at a time, clicking OK to save each condition; conditions appear in the Additional Search Conditions for the Selected Filter section when finished:

   Keyword	Comparison	Value
   State	is equal to	OH
   Itemized Deduction	is at least	1
   State e-Filed	is True

9. Under Additional Search Conditions for the Selected Filter, choose Match all conditions.

10. Click Save.

11. The Report Editor is closed, and your new report is saved under My Reports.

12. Run the report and export to Excel as needed.