Note: Your software must be on at least v2020.20.16 to apply this update.

IMPORTANT:  You will need a 2021 Authorization Code starting with the letter 'E' BEFORE installing this update! 

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.
• 2021 Reprint Scheduler and templates v2021.12.15.
• State Filing - 1099-NEC is participating in Combined Federal/State Filing for tax year 2021. 
• 2022 IRS/SSA Updates - Tax Year 2022 preliminary forms are available for data entry, reports, & exports.

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 Information
  • 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.

UPDATED: 

• Federal Thresholds - Updated per IRS form changes (listed above).
• State Thresholds - Updated per IRS form changes (listed above).
  
• General
  • Pro Central - Updated tax reporting deadlines and penalty amounts.
  • Latest Help file.

FIXED:

• Printing 
  • Reprint Scheduler - 1042-S Foreign TIN was not being masked. (CS-3208)
• Electronic Filing 
  • Puerto Rico Grouping by EIN filter was not working for Tax Year 2020. (CS-3308)
• General 
  • Query - 1099-NEC State Abbrev and State ID box field names corrected to Box 6 from Box 17.