2021 ProSeries/Idaho Readme

Release 2021.290

Contents

Items addressed in this release

Items addressed in previous releases

What's new for ProSeries/Idaho

Forms

Additional Information

Electronic filing

Items addressed in this release

• Various program enhancements and diagnostics.

Items addressed in previous releases

• Form 8582: Smart worksheet added to capture prior year CRD loss carryover.
• Idaho Form 43, line 40, Idaho changed the method of calculating Qualified Business Income Deduction so it is proportional to the Idaho qualifying business activity
• Idaho Form 40, line 25 and Form 43, line 46, Idaho updated the age limit for claiming the Child Tax Credit from age 16 and under to age 17 and under
• Idaho Child and Dependent Care Credit, Idaho increased the limits from $3,000 for one child or dependent or $6,000 for more than one child, to $8,000 for one child or $16,000 for more than one child
• Federal Form 8915-F, Updates in relation to Federal Form 8915-F have been finalized
• Idaho Form 40, line 48, will now include the amount entered for Affected Business Entity (ABE)
• Form 8582, Passive Activity Loss Limitations

What's new for ProSeries/Idaho

The following items are new for tax year 2021:

• Conformity To Internal Revenue Code (IRC) Idaho conforms to the IRC as of January 1, 2021. Idaho doesn't conform to bonus depreciation for assets acquired after 2009.
• Tax Rate Reduction: Effective January 1, 2021, all tax rates have been decreased. Individual income tax rates now range from 1% to 6.5%, and the number of tax brackets has been reduced from seven to five.
• Standard Deductions Have Increased: Single or Married Filing Separately = $12,550, Head of Household = $18,800, Married Filing Jointly = $25,100.
• Bonus Depreciation Add-back Limited to Benefit: Idaho taxable income only includes the bonus depreciation add-back to the extent the depreciation could be used on the federal return. Passive loss and other basis carryovers will have to be adjusted accordingly.
• State and Local Tax Workaround Allowed: A pass-through entity can elect to pay Idaho tax at the entity level as a workaround for the $10,000 limit on the federal deduction for state and local taxes. The annual election and related tax payment must be made by April 15 of the following year.

Forms

The Idaho State Tax Commission has approved for filing all forms and schedules included in ProSeries/Idaho.

Additional information

Check all returns

The Idaho State Tax Commission scans computer-generated forms to quickly process the income tax returns they receive. To meet the requirements for producing computer-generated forms, ProSeries is required to limit the width of the tax information printed on forms that are scanned. In certain cases, data you entered may be truncated. After completing a tax return, review the information that prints (for example, mailing address information), make any necessary changes, and reprint the return before mailing it.

Bar codes on printed state returns

Some states use bar codes on computer-printed tax forms. This special formatting allows the state taxing authorities to process returns more quickly and efficiently. On-screen, you'll see only a small representation of the bar code on the lower-left side of the form. This image is static and does not change based on the information in the return. However, when you print the return, the bar code appears as a large rectangular box on the first page of the form. The width of the bar code is constant; the height varies according to the data in the return. In general, the more complex the return, the larger the printed bar code.

Important: Because the bar code image is a function of the data in the tax return, it's important that you reprint the page with the bar code if changes are made to any part of the return. Also, do not print blank copies of the main form and prepare them manually. The Idaho taxing authority may attempt to scan the form and reject it.

Electronic Filing

General information for electronic filing:

You can file returns electronically with this version of ProSeries/Idaho.

PDF ATTACHMENTS
PDF attachments are supported for electronic filing with Idaho returns. As you create returns for electronic filing, ProSeries will automatically track attachments required to be submitted with the Idaho e-file return. If you would like to attach some or all of these attachments as PDF files you can now access that option for the Idaho return under the e-file menu (either from within the return or on the HomeBase when the return is highlighted). The Electronic PDF attachments section of the Idaho Information Worksheet, Part VIII keeps track of required attachments that have been attached as PDF.

International ACH Transactions (IATs)
There are new bank reporting requirements that require states to report if a tax direct deposit or direct debit will be automatically transferred to or from a foreign bank account. This is a very new law and most states are not able to handle these transactions yet. Therefore, they will probably change an IAT direct deposit refund request to a refund check and send a bill for an IAT direct debit request.

A question about these types of foreign transactions has been added to the program. This question must be answered for all states whenever there is a direct deposit of refund request or direct debit payment request in the return. If the transaction is an IAT, the program will require that the direct debit or direct deposit request be removed or another bank be chosen.

For a list of forms that cannot be e-filed, go to the What's New for Idaho.

End of ReadMe file for ProSeries/Idaho