IMPORTANT: You will need a 2021 Authorization Code starting with the letter 'E' BEFORE installing this update!
NOTE: SOFTWARE MUST BE AT LEAST ON v2020.20.16 TO APPLY THIS UPDATE.
Important - Tax Year 2021 is locked off for Electronic Filing and Service Bureau Uploads.
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NEW:
- All 2021 tax forms and instructions have been updated with IRS changes.
- All business rules and custom queries have been updated for 2021 form fields.
- All 2021 sample import files and Excel data shells have been added.
- All reports have been updated for 2021 tax form changes.
- All help files have been updated for 2021.
- Paper Filing - Enabled for 1099 & W-2 forms
FORM CHANGES:
- Form 1099-DIV:
- New Box 2e (Section 897 ordinary dividends)
- New Box 2f (Section 897 capital gain)
- Form 1099-MISC:
- Form Title is now Miscellaneous Income
- New Box 11 (Fish purchased for resale)
- Form 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
- Form 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
- Form W-2G:
- 2020 Box 11 First I.D. → 2021 Box 11 First identification
- 2020 Box 12 Second I.D. → 2021 Box 12 Second identification
- Form W-2:
- The Social Security Wage Base is $142,800 for Tax Year 2021
- 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 increased - The higher penalty amounts apply to returns required to be filed after December 31,2021.
- Form 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
IMPORTANT: Please review the following 2021 1042-S code changes and make any required changes to your data or imports.
FIXED:
