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Note: Your software must be on at least v2020.20.16 to apply this update.
Release Notes
Important
- Tax Year 2021 is locked for Electronic Filing, Service Bureau Uploads, and Paper Filing.
- You will need a 2021 Authorization Code starting with the letter "E" before installing this update.
New and improved:
- We updated all 2021 tax forms and instructions with IRS changes.
- We updated all business rules and custom queries for 2021 form fields.
- We added all 2021 sample import files and excel data shells..
- We updated all reports for 2021 tax form changes.
- We updated all help files for 2021.
- We added the 2021 Reprint Scheduler and templates v2021.12.15.
- For State Filing, the 1099-NEC is participating in Combined Federal/State Filing for tax year 2021.
- Tax year 2022 preliminary forms are available for data entry, reports, and exports.
- We updated Federal Thresholds per IRS form changes.
- We updated State Thresholds per IRS form changes.
- In Pro Central, we updated the tax reporting deadlines and penalty amounts.
Form changes:
- 1099-DIV
- New Box 2e (Section 897 ordinary dividends)
- New Box 2f (Section 897 capital gain)
- 1099-MISC
- The form title is now Miscellaneous Information
- New Box 11 (Fish purchased for resale)
- 1099-NEC
- New Box 2 Checkbox (Payer made direct sales totaling $5,000 or more of consumer products to recipient for resale)
- Removed FATCA Checkbox
- Form resized so now it can fit up to 3 per page
- 1099-PATR
- Expiration of certain credits reported in Box 12
- The Indian Employment Credit
- Second Generation Biofuel Producer credits
- The Production Credit for Indian Coal Facilities
- Expiration of certain credits reported in Box 12
- W-2G
- 2020 Box 11 First I.D. → 2021 Box 11 First identification
- 2020 Box 12 Second I.D. → 2021 Box 12 Second identification
- W-2
- For tax year 2021, the Social Security Wage Base is now $142,800.
- For tax year 2021, the Social Security tax withheld amount should not exceed $8,853.60 ($142,800 × 6.2%).
- The tax year 2021 Social Security and Medicare coverage threshold for Household wages is now $2,300 ($100 increase from 2020).
- Penalties have increased. The higher penalty amounts apply to returns required to be filed after December 31, 2021.
- 1042-S
- Chapter 3 Exemption
- 2020 Code: 02 Exempt under IRC (other than portfolio interest) → 2021 Code: 02 “Exempt under IRC”
- New Chapter 3 Exemption Code: 24 Exempt under section 892
- Review the following 2021 1042-S code changes and make any required changes to your data or imports:
- Chapter 3 Exemption
Bug fixes:
- Previously, on the Reprint Scheduler, the 1042-S Foreign TIN was not being masked. We fixed this issue. (CS-3208)
- For Electronic Filing, the Puerto Rico Grouping by EIN filter was not working for tax year 2020. We fixed this issue. (CS-3308)
- We corrected the 1099-NEC State Abbrev and State ID box field names from Box 17 to Box 6.
Coming soon
- 2021 eFileViewer
- 2021 Web Presentment API
Overview
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