ProSeries/1040 ReadMe

Items addressed in this release of ProSeries

The following issues have been addressed in this release:

Form 1040X, Amended U.S. Individual Income Tax Return may be filed electronically in this release of ProSeries/1040.

Form 8915-C, Qualified 2018 Disaster Retirement Plan is included in this release of ProSeries/1040.

Form 8915-D, Qualified 2019 Disaster Retirement Plan is included in this release of ProSeries/1040.

Earned Income Credit Worksheet, on line 10 of the worksheet, when AGI was greater than the 2018 threshold and less than the 2019 threshold, the program incorrectly checked the "No" box and understated the credit.

Form 5471 - Schedule F, Line 8 - Other Investments, the continuation statement that prints for this schedule incorrectly labeled the "beginning" and "ending" of "annual accounting period" as "Foreign Amount" and "Amount."

Form 5471 - Part III:Taxes for Which a Foreign Tax Credit is Disallowed, if an EIN is missing, the program incorrectly presented an error message when both

a reason the EIN was missing and
a reference ID were given.

The error should have dismissed when those two identifying pieces of information were provided.

Form 1040, when electing the option to print the computer's date on the return in the preparer's signature area, the date would not appear on the screen. It only appeared on the printed form.

Items addressed in previous releases of ProSeries/1040

The following issues were addressed in previous releases:

Release 2019.340 / June 10, 2020

Form 8615, Tax for Certain Children Who Have Unearned Income - The calculations on line 2 were not including the parent and sibling values of dividends.
Form 1099-G, Certain Government Payments - Increased error messaging for returns with 1099-Gs from Illinois with RTAA, to help users avoid rejected returns.
Other Income Worksheet - Removed error messages that existed on the spouse fields for foreign income when there is no spouse on the return.

Release 2019.321 / May 27, 2020

Form 5471, Schedule H, Current Earnings and Profits, line 2i - The IRS requires a Description if an amount is entered. An error message has been added to require the Description in that case.
Form 8615, Tax for Certain Children Who Have Unearned Income - The tax on line 7 under rare circumstances was pulling extra tax inappropriately from a Schedule D tax
Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund - Returns are rejected by the IRS if Part III, line 7c is not zero and there is no Schedule D in the return. Form 8621 does not interact with any other form in the program so the preparer must enter the amount in line 7c on Schedule D in the proper place. An error message has been added to that field to remind the preparer.
Asset Entry Worksheet - Qualified Improvements property (code J5) is now eligible for 15 year life due to the technical correction in the recent CARES Act. This is activated by checking the Yes box in the TCJA Smart Worksheet on the Information Worksheet below the taxpayer's address. This functionality has always been there but notification has been added to that Smart Worksheet and to Help.
Removed in various places references to NOL's being limited to 80% of income and that only farm losses may be carried back

Release 2019.300 / May 13, 2020

Form 5471:
- Line 1a was printing the country and postal code twice
- Line 2c country and postal code were unnecessarily printing on the next line
Form 5471, Schedule E Part I - the business name in column (a) was not printing in the proper place
Form 5471, Schedule I - some amounts were printing on the wrong line:
- Line 1c printed on line 1e
- Line 1d printed on line 1c
- Line 1e printed on line 1c
Form 8839, Qualified Adoption Expenses - The Carryover Computation Worksheet, Total credit carryforward to 2020 (line 23) was adding line 22 to line 21 instead of subtracting it. This was cosmetic only and had no effect on the carryforward amount on the Federal Carryover Worksheet line 19.
Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit was not applying the 50% credit phase-out for General Motors vehicles placed in service during the period July 1, 2019 through September 30, 2019

Release 2019.270 / April 22, 2020

Due Dates
- June 15, 2020 1040-ES voucher due date is changed to July 15, 2020
- Out of country non-military/military citizens and residents June 15, 2020 due date changed to July 15, 2020
Form 2555, Foreign Earned Income was requiring that a date be entered on either line 10 or 16 when the Foreign Earned Income Allocation Worksheet has a value for foreign earned income on line 42 but qualifying days for the foreign earned income exclusion weren't calculated on line 29. It was doing this even when the Form 2555 line 18's Smart Worksheet for calculating number of days less than requirement was filled out and showed a positive number of days less than the required 330 days. If the taxpayer fails the physical presence test then those dates shouldn't be required.
Client Analyzer - Selecting one of the following queries was causing an error:
- Tax Preparation Fee Not Calculated
- Taxpayer or Spouse Deceased
- Foreign Bank Account
- Has Education Expenses
- Repaying First-Time Homebuyer Credit

Release 2019.250 / April 8, 2020

Capital Loss Carryover Worksheet was bringing in to line 1 the 2018 taxable income limited to $0 when it should have transferred the negative amount
The interest on late payment calculation has been adjusted to use a July 15, 2020 due date
New QBI statement Rental Real Estate Enterprise Statement has been added in support of Rev Proc 2019-38 for rental real estate "safe harbor"

Release 2019.240 / April 1, 2020

IRS Due Date Changes - Updates have been made to the program regarding the new July 15, 2020 due date for the filing and payment of any balance due, Client Letter, Estimated payments and so forth.
Schedule E Worksheet, Rentals and Royalties - QBI income was not flowing to a QBI Component Worksheet nor to Form 8995 unless the Trade or Business Name was entered in line B of the QBI Deduction Smart Worksheet
Information Worksheet, Part IX - Electronic Funds Withdrawal Options - When a Form 9465 installment agreement was completed, the Balance due amount from return was showing the the partial payment amount instead of the actual tax due. This had no effect on the return.
Form 5471 Worksheet was requiring Item B to be completed whether or not the taxpayer was a Category 3 Filer

Release 2019.220 / March 18, 2020

Form 5471 Schedules H and O - Separate statement forms for Schedule H line 2i and Schedule O, Section F, lines (a) and (c) have been removed and that data is now entered directly on the Schedules. Any data already entered on the statement forms is transferred to the new locations the first time the tax file is re-opened with this or any subsequent release.
Form 14039, Identity Theft Affidavit - If the person is deceased (first checkbox in the Phone Number Smart Worksheet) the Home telephone number field was not filled with "Deceased" as the instructions specify
Capital Loss Carryover Worksheet was bringing in to line 1 the 2018 taxable income before the QBI deduction. This may affect 2019 client returns that
- had a 2018 QBI deduction, and
- the 2018 capital loss was larger than their taxable income, and
- the loss was less than $3,000
Schedule D Tax Worksheet (for Form 8615, Tax for Certain Children Who Have Unearned Income) - Lines 11 and 15 were not calculating in some circumstances:
- In certain situations where the child had unrecaptured 1250 gain or 28% gain, or
- in certain situations where the Parent's Investment & Net Capital Gain Worksheet was active

Release 2019.210 / March 11, 2020

Form 1041 and 1120S K-1 Worksheets - QBI REIT dividends were not flowing to the QBI worksheets or Form 8995/8995-A
Two-Year Comparison - Itemized Deductions - The 2018 column for Total Itemized Deductions was not applying the SALT limit on the taxes and instead summed all of the itemized amounts
Schedule E Two-Year Comparison - The line 20 Income or (loss) value in the 2018 column was not updating properly for income or expense values entered above

Release 2019.201 / March 6, 2020

Forms 5471 and 8615 are now final

Release 2019.200 / March 4, 2020

Form 1040 Worksheet - Schedule 3 section, line 8, the write-in text field is now not enterable. This is computed and is for joint estimated taxes made with a former spouse and some users were entering text there that did not conform to the IRS specifications and those EF returns were rejected.
Form 4255, Recapture of Investment Credit, line 1 - Original rate of credit - is now limited to a maximum entry of 100.00. Entries greater than that cause such returns to be rejected.
Form 8801, Credit for Prior Year Minimum Tax - The 2018 Form 6251 and Prior Year Form 8801 Information Smart Worksheet line C1 was including lines A9 and A11 and it should not have been
Forms 8995, 8995-A and Schedule C (Form 8995-A) - Added printing of parenthesis and percent signs (%) on applicable lines that were missing them
Form W-2 & W-2G Summary - An entry in Form W-2 Box 14 for State deductible employee expense, such as union dues, was improperly flowing to Schedule A line 5 as a state and local tax deduction. This has been corrected to flow to the Miscellaneous Itemized Deductions Worksheet (State Use Only), Employee Business Expenses, line 9. This defect was introduced in Release 2019.140.
Form W-4 was producing an erroneous message in some circumstances that Total Allowances must be entered
Information Worksheet - An error message has been added for when Head of Household filing status is selected but the taxpayer is also claimed or can be claimed as a dependent by another person
Client Presentation - In the Personalized Tax Advice section a paragraph appeared saying the client will turn age 72 in 2020 when the client actually will turn age 70 1/2
Identity Verification Worksheet - Errors have been added for entering expired drivers licenses or state identification cards, and also for checking a "does not have" or "did not provide" box but license or card information has been entered

Release 2019.190 / February 26, 2020

Form 1116 Part I was moving the printing of a column to a blank column to the left. For instance, if column A was blank and column B had values, the column B values would print in column A.
Forms 1065 and 1120S Schedule K-1 Worksheets - QBI support for Section A lines 1b-1f amounts is now enabled and the error message for having amounts there is removed

Release 2019.180 / February 20, 2020

Form 1099-G was not recognizing a few Michigan locality codes in Box 10a
Schedules C, E Worksheet, F and Form 4835 - There is now a QBI section 179 carryover to 2019 entry field on the Carryovers to 2019 Smart Worksheet line A, and the error on the regular tax section 179 carryover field is removed

Release 2019.170 / February 12, 2020

Form 1098 was requiring an answer to the question "Did your home loan close after December 31, 2006?" when an entry in Box 3, Mortgage origination date, already answers that question
Form 8995-A was not opening when the only QBI income on the QBI Deduction Summary was 199A dividends (REIT dividends) and Form 8995 was not being used due to taxable income thresholds. This was causing such returns to be rejected.
Asset Entry Worksheet
- Was computing 30% bonus depreciation for Qualified second generation/Cellulosic biofuel/Biomass plant property when it should be 50% due to the TCDTRA
- An error was generated for a prior year rental property asset for which a section 179 deduction was taken
Form 6252, Installment Sale Income Part I lines 9 and 12 are now enterable since Part I must now be completed every year
Form 2555, Foreign Earned Income Part VI the location country picklists in the Foreign Housing Expense Limitation Smart Worksheet lost the ending All other countries not listed item during update
Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments was being created on some client 2019 returns when transferring from 2018. It was blank and caused no issues.
Personalized Tax Advice is now updated for the new required minimum distribution date for those turning 72 in 2020.

Release 2019.160 / February 5, 2020

Schedule 1, Additional Income and Adjustments to Income line 8, Other income, was not showing the new Form 8621 text to the left of the total line 8 amount. The income from the 8621 was included in the total income.

Release 2019.150 / January 29, 2020

Form 8396, Mortgage Interest Credit was showing internal-use field names in error messages for the line 2 table fields instead of their descriptive names

Release 2019.140 / January 23, 2020

Car and Truck Expenses Worksheet - A luxury auto acquired prior to 9/28/2017 and placed in service in 2019, eligible for bonus depreciation, was computing a limit of $10,100 on lines 26 and 35 instead of the correct $14,900. Form 4562 and the activity reported the correct amount so there was no effect on the return.

Release 2019.130 / January 15, 2020

Form 8829, Expenses for Business Use of Your Home - The Simplified Method is allowed on only one Form 8829. An error message has been added when the method is used on more than one.

Release 2019.120 / January 8, 2020

Form 1040 Dependents overflow statement was not printing with the return when there were more than four dependents
Form 1040 - The preparer's PTIN was printing in the Date field and the firm's EIN was printing in the the PTIN field
Form 8879 - If the return was marked for Self-Prepared or Non-Paid Preparer on the Information Worksheet, the ERO's EFIN + PIN was not flowing to Part III
Form 8888, Allocation of Refund was not part of the return if direct deposit was not selected on the Information Worksheet and only Part II was used for U.S. Series I savings bond purchases

Release 2019.110 / January 2, 2020

Form 1040 Worksheet Schedule 2 section, line 8c Other taxes table - When uncollected employee social security and Medicare taxes on tips and group term life insurance were both present, code U was listed for each amount. Those two amounts are now combined into one code U line.
Schedule C - The checkboxes for clergy has an approved Form 4029 and Form 4361 inadvertently became unenterable. These are now enterable.
Tax Planner and What-If Worksheets - The earned income credit is now updated for tax year 2019
Various form and electronic filing validation updates

Release 2019.060 / November 27, 2019

Federal Carryover Worksheet - Charitable carryovers on the Charitable Contributions Summary for 100% unused current year and 60% unused 2018 on lines 6a(b) and 6b(c), respectively, were not flowing to the Carryover Worksheet lines 27a(f) and 27b(e)
Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, is now functional

For more information on what's new in ProSeries, open a 1040 return, go to the Help menu, select Help Center, then select What's New This Year?

New ProSeries/1040 forms and worksheets

We've added the following forms to ProSeries/1040 for the 2019 tax year:

Tip: For information about changes to existing forms, start or open a Form 1040 return, go to the Help menu, select Help Center, then select What's New This Year?

Obsolete ProSeries/1040 forms and worksheets

We've removed the following obsolete forms and worksheets from ProSeries/1040 for the 2019 tax year:

Tax legislation issues

For information on tax legislation issues, open a 1040 return, go to the Help menu, select Help Center, then select What's New This Year?

Electronic filing

Electronic filing functionality is available in this release of ProSeries/1040. The IRS opened for e-file on January 27, 2020.

For electronic filing procedures and information, click the EF button on the toolbar to go to the EF Center (also known as the HomeBase Electronic Filing view). The Steps to E-File section on the right side of the EF Center summarizes the steps that you take when you file a client's return(s) electronically. In the Steps to E-File section:

Click a step to see detailed information in the ProSeries User's Guide
Click a button to see more information about electronic filing

2019 ProSeries/1040 ReadMe

Release 2019.450 / August 26, 2020

Click on any of the links below to go directly to the topic of your choice

Forms that can be filed now

All forms in this release of ProSeries/1040 may be filed with the IRS.