Downloads for 2021 Editions of Tax Preparer

Release 2021.01n now available.

Initial installation for the year must be from the first program we provide you for the current tax season. Once you have completed the installation, you can use these on-line updates for subsequent changes throughout the tax season.

The downloads on this page are only for Tax Preparer for Form 1040 returns. Downloads for the Partnership Edition for Form 1065 returns are found on the Partnership Downloads page. Downloads for the California Supplement for Form 540 returns are found on the California Downloads page.

Tax Preparer Downloads

e-file information. (Standard and Premium Levels only) If you purchased e-file transmission software for the current filing season, you should receive a disk from PDP Tax Service customized for compatibility with Tax Preparer. You can install that software any time after you install the current edition of Tax Preparer.

Current Tax Preparer downloads. In order to use these downloads, you must have already installed the complete program for the 2021 edition of the Form 1040 software, such as release 2021.01 or 2021.01c. Just go to the level you installed and click the link. Your prior installation will then be updated to 2021.01n.

Economy Level. To update the Economy Level to release e2021.01n, click the following link: Update Tax Preparer 2021 Edition Economy (e2021.01n).

(7,826 KB) (revised 7/13/2021)

Standard Level. To update the Standard Level to release s2021.01n, click the following link: Update Tax Preparer 2021 Edition Standard (s2021.01n).

(52,906 KB) (revised 7/13/2021)

Premium Level. To update the Premium Level to release p2021.01n, click the following link: Update Tax Preparer 2021 Edition Premium (p2021.01n).

(52,996 KB) (revised 7/13/2021)

Changes in recent releases

(updated 7/13/2021)

Release 2021.01n differs from Release 2021.01m as follows:

•   Form 1040-X revised to include the Recovery Rebate Credit (RRC) in line 15 of Form 1040-X. Before this release, the Recovery Rebate Credit (RRC), which was new for 2020 and reported on line 30 of Form 1040, was omitted from line 15 but should have been included because it is a nonrefundable credit not included elsewhere on Form 1040-X. As a result of this omission, the AMOUNT YOU OWE (1040-X, line 19) or Amount OVERPAID (1040-X, line 20) would be wrong if you had an amount on Form 1040, line 30, for either the original return or the corrected return. CAUTION: If you created Form 1040-X with a release prior to this 2021.01n release and you have or had an amount for RRC (on Form 1040, line 30), or you have an amount on Schedule 3, line 12b, 12d, or 12e, you MUST perform two steps after installing this release: Step 1: Change an entry anywhere on Form 1040-X, press the Recalc Key (ctrl-B or shift-F8), then change the entry back to its proper value. Step 2: If the original return had an amount for RRC, increase the amount on Form 1040-X, line 15-A, to include that amount. The return will then be automatically corrected and the 'Other' checkbox for Form 1040-X line 15 will be checked if the corrected return has an amount on either Form 1040, line 30, or Schedule 3, line 12b, 12d, or 12e.

Release 2021.01m differs from Release 2021.01l as follows:

•   Form 1040 revised:
  •   Dependents' Worksheet. CHILD is no longer allowed by the IRS as a valid entry for Relationship of a dependent when claiming the Child Tax Credit or the Earned Income Credit. Instead, the relationship must be more specific, such as SON, DAUGHTER, STEPCHILD, or FOSTER CHILD. As a result CHILD is no longer allowed by the software for qualification as a dependent for either the Child Tax Credit or the Earned Income Credit. Instead, only the Credit for Other Dependents will now be claimed when you enter CHILD as the relationship. Impact on e-file: This change does NOT prevent the pre-transmission error that you will encounter if you enter CHILD, You must still change the entry to one of the e-file accepted entries, irrespective of what credit you are claiming, which are: SON, DAUGHTER, STEPCHILD, FOSTER CHILD, BROTHER, SISTER, STEPBROTHER, STEPSISTER, HALF BROTHER, HALF SISTER, GRANDCHILD, NIECE, NEPHEW, PARENT, GRANDPARENT, AUNT, UNCLE, OTHER, or NONE.
  •   EIC flags at 1040 line 27. Earned Iincome Credit (EIC) flags NO and CLERGY at line 27 are modified for printouts and e-file. They are now separated for better readability on printouts and prevention of an e-file pre-transmission error (The value 'NOCLERGY' is invalid...) when both flags apply.
•   Form 1310 revised:
  •   'Signed by' entry automated. The entry for 'Signed by (claimant's name)" on screen 4 is now automatically the name that you entered on screen 1 when identifying the claimant.
  •   Printouts revised. Two flags for printouts have been moved for better clarity:
    •   CERTIFICATE PREVIOUSLY FILED applies only for Choice B in Part I, so it is now printed only if you indicated Choice B, In addition, it has been moved to print in the signature block (Part III)
    •   HAVE VALID PROOF OF DEATH applies only for Choice C in Part I, so it is now printed only if you indicated Choice C, In addition, it has been moved to print below the title for Part II, which is used only for Choice C.
  •   Choice B in Part I now allowed for e-file. Because choice B applies only to a personal representative claiming a refund on an amended return (Form 1040-X), it was previously disallowed because Form 1040-X could not previously be e-filed. However, now that Form 1040-X can be e-filed, choice B is allowed as long as other requirements are met (as explained below).
  •   e-file rejection by the IRS averted by adding checks for unallowed entries on Form 1310 (on screen 3 of the e-file form):
    •   The check '1310 box A chosen' will be YES and e-file disallowed whenever you choose 'A Surviving spouse requesting reissuance of refund check?' because a surviving spouse does not need to file Form 1310 to claim a refund.
    •   The check '1310 box B requirements not met' will be YES and e-file disallowed if you choode 'B Court-appointed or certified personal representative' and you answer NO to 'CERTIFICATE PREVIOUSLY FILED' or 'Claiming refund for 1040-X' (per IRS rejects F1310-023-01 and F1310-024, respectively).
    •   The check '1310 box C requirements not met' will be YES and e-file disallowed if you answer YES to line 2a (per IRS reject F1310-009-01), YES to line 2b (per IRS reject F1310-010-01), No to line 3 (per F1310-011-01), or NO to 'You have valid proof of death' (per IRS Instructions for Form 1310).
•   Form 8949 revised:
  •   Printouts revised to avert problems with very large dollar amounts. In Part II, line 1, very large adjustments in column (g) can no longer cross over into column (f). In Part II, line 2, very large totals in columns (d) and (g) can no longer exceed their column widths. (Both changes are achieved by removing commas and omitting cents when necessary to make the amounts fit within the columns. As a result, amounta as large as $99,000,000 can now be printed within the columns.)
  •   e-file revised to avert problems with very large dollar amounts. In Part II, line 2, the highest digits or minus signs are no longer dropped when they exceed the width formerly allowed.
•   e-file handling of dates in the xx/xx/xx format revised to ensure that entries 20 and 21 for year are interpreted as 2020 and 2021 rather than 1920 and 1921. The dates were already properly interpreted for most forms, A problem formerly arose ONLY for certain forms in which the wider xx/xx/xxxx format cannot fit within the provided widths, including signature dates on the e-file form and Form 1310 and select date entries on Forms 1116, 4797, 6781, 8283, and 8949.
•   Memory management improved to provide more free memory for returns with forms that have long text entries on the forms. (Long text entries in worksheets and itemized lists are NOT affected because they are not memory-limited.)
•   Recently revised IRS documents added. (Standard and Premium Levels only)
  •   2020 Instructions for Schedule H (Household Employment Taxes) Rev. May 14, 2021.
  •   Pub. 598 (Tax on Unrelated Business Income of Exempt Organizationa) Rev. March, 2021.
  •   Pub. 938 (REMICs Reporting Information) Rev. May 20, 2021.
  •   Pub. 4681 (Canceled Debts, Foreclosures, Repossessions, and Abandonments) Rev. Feb. 9, 2021.

Release 2021.01l differs from Release 2021.01k as follows:

•   Form 8615 added to all levels, for returns filed for children with more than $2,200 of unearned income. This form has undergone a drastic change from the prior year because the provision in the tax reform legislation that changed the calculation of tax to be based on the tax rates for estates and trusts rather than the child's parent has been repealed. As a result, the method of computing the tax and the details of the form itself have now reverted back to version used for 2017, making the form once again an 18-line form that requires you to enter information from the return of the parent and the returns of other children of the parent who file a return. The 7-line form of the past two years takes its place in history as a failed experiment.
•   Form 1040 revised to reflect the change in Form 8615 line numbers. The reference to Form 8615 at line 16 of Form 1040 now indicates line 18 as the line from Form 8615 to be used for the child's tax.
•   e-file form revised to reflect the change in Form 8615. In the check for unallowed entries for an e-file return, the item Elect to modify tax on 8615 has been removed because only one method is now allowed for computing the child's tax.

Release 2021.01k differs from Release 2021.01j as follows:

SUMMARY. All changes in this release relate to the Unemployment Compensation Exclusion and its impact on several other deductions and credits, as indicated by the IRS mid-April revisions to their 1040 Instructions for 2020. The new exclusion was enacted on March 11, 2021 as a part of The American Rescue Plan of 2021 and provides a reduction in taxable income by as much as $10,200 for those who received unemployment compensation in 2020 (as much as double that amount if married filing jointly and both spouses received unemployment compensation). The initial instructions from the IRS in a memo released days after the bill was enacted show you how to manually determine the amount of exclusion to which you are entitled. However, that memo ignored its impact on a number of other deductions and credits, which can reduce the deductions and credits for some taxpayers. In mid-April, the IRS released revised Form 1040 instructions to reflect the subtleties of the law, albeit only in the What's New section of those instructions for most deductions and credits.

•   Schedule 1 revised:
  •   Unemployment Compensation Worksheet added to the last screen of Schedules 1-3. The worksheet is fully automatic for most taxpayers. However, if married filing joinly and BOTH spouses received umemployment compensation, you will need to enter on the worksheet the amount of unemployment compensation received by one spouse alone. The resulting exclusion will be reflected in line 8 of Schedule 1.
  •   Line 8 revised with the addition of a line above line 8 labeled UCE (unemp.comp.exclusion). This line automatically holds the result of the Unemployment Compensation Worksheet, but shown as a negative number so that it reduces taxable income.
  •   Line 19 calculation revised so that the unemployment compensation exclusion is added back to income when computing the modified AGI for line 5 of the IRS IRA Deduction Worksheet. This change conforms with the IRS revision to the worksheet in their mid-April version of IRS 1040 Instructions for 2020.
  •   Line 20 calculation revised so that the unemployment compensation exclusion is added back to income when computing the modified AGI for line 4 of the IRS Student Loan Interest Deduction Worksheet. This change conforms with the IRS revision to the worksheet in their mid-April version of IRS 1040 Instructions for 2020.
  •   Access to forms not in Road Map moved from last screen of Schedules 1-3 to last screen of the Control Form in order to make room for the Unemployment Compensation Worksheet. A line labeled ITEMIZE for non-Road Map forms is added below the worksheet to directly access the new location of the access lines.
•   Form 1040, line 6b, calculation revised so that the unemployment compensation exclusion is added back to income when computing the modified AGI for line 7 of the IRS Social Security Benefits Worksheet. This change conforms with the IRS revision to the worksheet in their mid-April version of IRS 1040 Instructions for 2020.
•   Form 8582 calculations revised so that the unemployment compensation exclusion is added back to income when computing the modified AGI for line 7. Unlike other affected forms, the computation of modified AGI is not explicity shown on the screen, but is computed in the background, and is reflected in line 7 only upon the final recalculation of the return. Note that the IRS has not revised their instructions for Form 8582 to reflect this change, but the need for this change is indicated in the What's New section of the revised Form 1040 instructions.
•   Form 8815 revised (Premium Level ONLY) so that the unemployment compensation exclusion is added back to income when computing the modified AGI for line 9. Note that the IRS has not revised their instructions for Form 8815 to reflect this change, but the need for this change is indicated in the What's New section of the revised Form 1040 instructions.
•   Form 8839 revised (Premium Level ONLY) so that the unemployment compensation exclusion is added back to income when computing the modified AGI for line 5. Note that the IRS has not revised their instructions for Form 8839 to reflect this change, but the need for this change is indicated in the What's New section of the revised Form 1040 instructions.
•   Form 8917 revised so that the unemployment compensation exclusion is added back to income when computing the modified AGI for line 5. Note that the IRS has not revised their instructions for Form 8582 nor Pub. 970 to reflect this change, but the need for this change is indicated in the What's New section of the revised Form 1040 instructions.
•   Control Form revised to add access to forms not in the road map on the last screen of the form. This access formerly appeared on the last screen of Schedules 1-3. However, you can directly access this screen of the Control Form from the last scren of Schedules 1-3.

Release 2021.01j differs from Release 2021.01h as follows:
CAUTION: If you installed release 2021.01i, you MUST update to release 2021.01j to avoid problems with Schedule 2, line 3. If you accessed any returns using release 2021.01i, you must, after updating to 2021.01j, change the entry for Schedule 2, line 2. Your entry will automatically change to zero (because of the new law) and Schedule 2, line 3, will be equal to Schedule 2, line 1, thereafter.

•   Form 8962 revised (Standard and Premium Levels only) to reflect the suspension of any repayment of excess advance Premium Tax Credit for 2020, as legislated by the American Rescue Act of 2021, which was enacted March 11, 2021. As a result of this legislation, Line 29 of Form 8962 is now always zero for 2020, even when the reduction of your premium in 2020 was more than allowed based on your 2020 income, and Form 8962 is no longer printed with the complete return (nor included in e-file output) when both line 26 and line 29 of Form 8962 are zero,
•   Schedule 2 revised to reflect the suspension of any repayment of excess advance Premium Tax Credit for 2020 as well. As a result, Schedule 2, line 2, will now always be zero for 2020.
•   e-file revised to avert certain e-file pre-transmission errors or IRS rejections:
  •   Errors that arise after a Form 1040-X is created for a return, including SSNs that are missing the first digit or checkboxes that are always blank, are averted.
  •   An IRS reject when line 1 of Form 8962 is zero is averted.
•   Form 8839 added (Premium Level only) for reporting Qualified Adoption Expenses, which results in either a claim for the adoption credit or the computation of taxable amount of employer-provided benefits.
•   Recent IRS documents added to reflect recent legislation retroactive to 2020 (Premium and Standard Levels only):
  •   Form 1040 Instructions revised to reflect retroactive changes for 2020 resulting from the American Rescue Act of 2021, including the partial or complete exclusion of unemployment compensation and the suspension of repayment of excess advance Premium Tax Credit. An Unemployment Compensation Exclusion Worksheet is now included in the IRS instructions.
  •   IRS Pub. 505 (Tax Withholding and Estimated Tax) revised to clarify that the first estimated tax payment for 2021 was still due April 15, 2020 inspite of the extension of due date for Form 1040 returns to May 17, 2020 (per IRS notice FS-2021-08, below).
  •   IRS Pub. 525 (Taxable and Nontaxable Income) revised to reflect the partial or complete exclusion of unemployment compensation from taxable income.
  •   IRS Pub. 974 (Premium Tax Credit) revised to reflect the suspension of excess advance PTC repayment.
  •   IRS notice FS-2021-08 added to clarify the suspension of excess advance PTC repayment and resulting changes in requirements to file Form 8962.

Release 2021.01h differs from Release 2021.01g as follows:

•   Schedule H revised to correct the on-screen label for line 25 as well as draft and graphic printouts. Calculations are unaffected.
•   Form 5884 revised (Premium Level only) to conform with recent IRS changes released in April, 2021. Changes in the form (for the Work Opportunity Credit) are minor, but the new instructions reflect the fact that the credit now covers work started as late as 2025, thanks to the Taxpayer Certainty and Disaster Tax Relief Act enacted at the end of 2020. The instructions also make it clear that you cannot claim the Coronavirus-related Employee Retention Credit, the Credit for Qualified Sick and Family Leave, nor the Disaster-related Employee Retention Credit for an employee for whom you claim the Work Opportunity Credit.
•   Form 8379 added (Premium Level only) for Injured Spouse Allocation to prevent one spouse's portion of a refund from being reduced to pay for IRS obligations of the other spouse. TIP: Appreciable automation has been added to the form to minimize manual determination of allocation among spouses, which means that, for returns prepared with a prior release, you must change an entry on Forms 2106, 5329, 8885, and 8889 for both spouses when they exist in the return in order to force their recalculation for allocations destined for Form 8379.
•   Recently revised IRS documents added (Premium and Standard Levels only) for Form 5884 and its instructions, Form 5884-A and its instructions, IRS Pub. 550, and tax bills text and explanations for the CARES Act (enacted March 27, 2020), the Taxpayer Certainty and Disaster Tax Relief Act (enacted December 20, 2020), and the American Rescue Plan Act (enacted March 11, 2021), all of which are accessible from the Tax Preparer Control Panel.

Release 2021.01g differs from Release 2021.01f as follows:

•   Form 3468 added to claim the Investment Credit for various energy-related and rehabilitation projects.
•   Form 4136 added (Premium Level only) to claim Credit for Federal Tax Paid on Fuels.
•   Form 8801 added (Premium Level only) to claim Credit for Prior Year Minimum Tax.
•   Control Form revised to deduct more allowed refundable credits when calculating tax for line 12b of Form 1040-ES (on screen 3 of the Control Form). The effect is to reduce the prior-year tax that can potentially be used to minimize the required quarterly payments computed on Form 1040-ES.
•   Form 1099-DIV Worksheet revised (in support of line 5 of Schedule B) to allow your entry for the line "Nominee distribs in 1b," with certain restrictions, rather than computing the line in direct proportion to the amount you entered for "Nominee distribs in 1a." Your data entry is now, constrained to the logical limits based on your entries for line 1a, its nominee distibution, and your entry for line 1b. Specifically, your entry for "Nominee distribs for 1b" is forced to be no more than "Nominee distribs in 1a," no more than "1b Qualified dividends," no less than "1b Qualified dividends" less the "Taxable balance" for 1a (above line 1b), and no less than zero. (The result for that line in its prior calculation is just one amount that lies within those constraints.)
•   Form 2555 revised (Premium Level only) to ensure translation from the prior-year return of the Revoked Exclusions Worksheet for line 6d, the answer to "Still bona fide res.?" in line 10, the city and country for line 8b, and the answer to "If no travel, answer Y here?" at line 29a.
•   Recently revised IRS publications added (Premium and Standard Levels only) for access from the Tax Preparer Control Panel, including IRS Pub. 536 (NOLs for Individuals, Estates, and Trusts) and IRS Pub. 590-B (Distributions from IRAs).

Release 2021.01f differs from Release 2021.01e as follows:

•   Forms 2210 and 2210-F added to compute the penalty on underpayment of estimated tax. These forms are strongly impacted by coronavirus tax relief as reflected in the CARES Act of 2020 (Coronavirus Aid, Relief, and Economic Security Act) and the FFCRA Act of 2020 (Families First Coronavirus Relief Act), especially for self-employeds who file Schedule SE and household employers who file Schedule H, who benefit the most with reduced penalties. Although the forms look similar to prior years, the details for Part IV (Regular Method) of Form 2210 result in no penalties fpr the first rate period period, a change in the date for column (a) and a totally blank column (b), using special instructions for 2021.
•   Control Form revised to reflect coronavirus tax relief in its computation of the tax for Form 2210, line 2.
•   Recently revised IRS Pub. 463 added for important information on travel, gifts, and car expenses.

Release 2021.01e differs from Release 2021.01d as follows:

•   Schedule 1 revised to ensure the printout of Schedule 1 and its inclusion in e-file output when unemployment compensation and its exclusion are the ONLY things reported on Schedule 1. See Customer Service Memo CSTP2101 for instructions on claiming the new unemployment compensation exclusion.
•   Schedule 3 revised (Standard Level only) to allow Form 1116 to be used for Schedule 3, line 1, even when the foreign tax credit can be claimed without filing Form 1116, as indicated on screen 3 of Schedule B, (Premium Level was unaffected by the problem.)
•   Schedule B revised to correct the on-screen line references to Schedule 3 on screen 3 of Schedule B, which formerly referred to line 48 rather than line 1.
•   Form 1040-X revised to...
  •   ...disallow itemizing to the Dependents Worksheet from Form 1040-X. Formerly, you could itemize to the worksheet by using the Override Key to access the worksheet, which would revise the worksheet such that the worksheet would no longer properly print on Form 1040 nor 1040-X.
  •   ...correct draft printouts near top of form where applicable tax year is indicated. (Graphic printouts were unaffected by the problem.)
•   Form 5329 revised (Standard Level only) to automate lines 43, 44, and 47 from amounts on Form 8889 for the appropriate spouse. Formerly, these lines were manual entry lines. (Premium Level was unaffected by the problem.)
•   Forms 8885 and 8889 revised (Standard Level only) to ensure that the appropriate spouse's name and SSN are printed on the form. Formerly, both names were printed and the SSN for the first taxpayer was printed, irrespective of which copy of the form was being printed. (Premium Level was unaffected by the problem.)
•   Recently released IRS documents added (Standard and Premium Levels only) for access from the Tax Preparer Control Panel, including six important publications (Pubs. 541, 544, 547, 925, 926, and 946).

Release 2021.01d differs from Release 2021.01c as follows:

•   Form 1040 graphics revised by changing the dates next to the Age check boxes from January 2, 1955 to January 2, 1956. Calculations are unaffected because the software requires you to enter taxpayer ages rather than answering a question using these dates.
•   Form 1040-ES added for figuring Estimated Tax for Individuals for tax year 2021 and printing quarterly Form 1040-ES Payment Vouchers based on the results.
•   Form 1040-X added for filing Amended U.S. Individual Income Tax Returns for tax year 2020. NEW THIS YEAR: Amended returns can now be e-filed! For the first time, the IRS is allowing the e-filing of amended returns, after a successful pilot program for 2019. Tax Preparer supports this change with this release (for amending tax year 2020 returns only). Keep in mind that you must NOT create Form 1040-X until you have filed your original return for 2020. And, for the most automated experience, you should then create Form 1040-X BEFORE you make any changes to the return. Also note that you must affirmatively answer the question "Filing 1040X for tax yr. 2020?" on screen 1 of the form in order for it to be made a part of your return. TIP: When Form 1040-X is a part of the return, it is printed with your complete return after Schedule SE and before Form 1116 (Form 2441 for Economy Level) because that is the order required for e-file. However, for a PAPER return you should move the printed Form 1040-X to the front of your return, preceding Form 1040, for fastest processing by the IRS.
•   Schedule 1, line 19 revised to allow contributions without the former limit to taxpayers under 70-1/2 years of ago at yeaaar-end. That long-standing rule was repealed by the SECURE Act, which was a part of the Further Consolidated Appropriations Act of 2020.
•   Form 5329 revised as follows:
  •   Amended return indicator at top of form is now automatic based on the presence of Form 1040-X in the return with a YES answer to the question "Filing 1040X for tax yr. 2020?" on screen 1 of that form.
  •   Line 10 revised to allow the traditional IRA contribution credit for taxpayers over 70-1/2 at year-end, thanks to the SECURE Act, which repealed the former rule.
  •   Line 52 revised to eliminate the need for a Required Minimum Distribution (RMD) in 2020 except for defined benefit retirement plans, thanks to the WAIVER legislated by the CARES Act of 2020. The waiver applies to traditional IRAs and defined contribution plans, so the question "Defined benefit plan?" is added above line 52 of our Form 5329 to indicate the type of plan. The 50% penalty on failure to take a required RMD is assessed ONLY if your answer is Yes.
•   Form 8606, line 1 revised to allow nondeductible contributions even when age at year-end exceeds 70-1/2, thanks to the SECURE Act of 2020.
•   Form 8889 added to Standard Level, Because of its popularity, this form for Health Savings Accounts (HSAs) is now built into both Standard and Premium Levels.
•   Form 8995 revised to further automate the computation of NET QLFD. BUSINESS INCOME/LOSS on screen 1 by reducing the net QBI by the amounts on lines 14, 15, and 16 of Schedule 1, which must be taken into account for most taxpayers. Formerly, you had to enter these amounts manually as exclusions on the line above NET QLFD. BUSINESS INCOME/LOSS. CAUTION: If you previously manually entered any of these amounts as exclusions, you should remove them so that they are not double-counted. Your change will be reflected on the form upon the final recalculation of the return (which you can force by pressing ctrl-B).
•   e-file form revised by removing the flags for amended return indicators on Forms 5329 and 8606, which formerly made you ineligible for e-file.
•   e-file rules revised in accordance with recent IRS changes to avert problems for some amended returns and withholding on line 25 of Form 1040.
•   More than 3 dozen IRS documents added (Standard and Premium Levels only) for access from the Tax Preparer Control Panel. The 41 added forms, instructions, and publications were just released by the IRS in the past 3 weeks, including several important IRS publications that were delayed because of changes made necessary by recent legislation, including the budget bill that was enacted in the final days of 2020.

Release 2021.01c differs from Release 2021.01b as follows:

•   Form 2555 added (Premium Level only) for claiming the Foreign Earned Income Exclusion and the Housing Exclusion or Deduction..
•   Form 4137 added (Premium Level only) for figuring Social Security and Medicare Tax on Unreported Tip Income.
•   Form 4972 added (Premium Level only) for figuring a reduced Tax on Lump-Sum Distributions.
•   Form 8396 added (Premium Level only) for claiming the Mortgage Interest Credit.
•   Form 8815 added (Premium Level only) for claiming Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989.
•   Form 8828 added (Premium Level only) for figuring the tax due to Recapture of Federal Mortgage Subsidy.
•   Form 8853 added (Premium Level only) for figuring deductions and taxes on Archer MSAs and Long-Term Care Insurance Contracts,
•   Form 8889 added (Premium Level only) for figuring deductions and taxes on Health Savings Accounts (HSAs).
•   Form 1040 revised (e-file only) to avert a potential e-file error when prior-year earned income is used in figuring additional credit from Schedule 8812 (Additional Child Tax Credit).
•   Schedule A revised (e-file only) to avert a potential e-file error when adjusted gross income (AGI) on Form 1040 is negative.
•   Form 8995 revised (e-file only) to avert a potential e-file error when no deduction results on Form 8995.
•   Recently released IRS documents added (Standard and Premium Levels only) for access from the Tax Preparer Control Panel, including Forms 1040-X and 1045 and their instructions, revised instructins for Form 5329, and IRS Publications 15-A and 550. The Form 5329 instructions now instruct you to not report income from qualified disaster distributions, including coronavirus-related distributions, rather than reporting them and claiming an exception on line 2 of the form.

Release 2021.01b differs from Release 2021.01a as follows:

•   Calculation of taxable social security benefits at line 6b of Form 1040 revised to reflect your entry for charitable contributions on line 10b of Form 1040 and any exclusion from line 45 of Form 2555. Line 10b of Form 1040, which can be no greater than $300, was added to the IRS's worksheets for figuring taxable benefits this year and reduces the income used in figuring the taxable benefits. The taxable benefit can be decreased by as much as $150 for the maximum charitable contribution. Exclusions on lines 45 and 50 of Form 2555 increase the income used in figuring the taxable benefits. Line 50 was already reflected previously in the calculations, but line 45 was not. Note that Form 2555 appears only in the worksheet in IRS Pub. 915, which is more complete than the worksheet in the IRS 2020 Form 1040 Instructions. TIP: For a return previously prepared with an amount on lines 6a and 10b of Form 1040, you must, after installing the update, change an entry on Form 1040 to force a recalculation of the taxable benefits. For a return prepared with an amount on line 6a of Form 1040 and an amount for the Form 2555 component of Schedule 1, line 8, you must change an entry on that schedule to force a recalculation of the taxable benefits.
•   Form 2848 added (Premium Level only) for filing a Power of Attorney and Declaration of Representative.
•   Form 6765 added (Premium Level only) for claiming the Credit for Increasing Research Activities.
•   Form 8846 added (Premium Level only) for claiming the Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips.
•   Recently released IRS documents added (Standard and Premium Levels only) for access from the Tax Preparer Control Panel, including Form 8996 and its instructions, and IRS Publications 530 and 969.

Release 2021.01a differs from Release 2021.01 as follows:

•   Form 2106 added for claiming Employee Business Expenses for certain targeted employees.
•   Form 4255 added (Premium Level only) for figuring the tax for Recapture of Investment Credit.
•   Form 4562 added for claiming Depreciation and Amortization deductions.
•   Form 4684 added for claiming deductions for Casualties and Thefts.
•   Form 8995 added (Standard and Premium Levels only) for claiming the Qualified Business Income Deduction.
•   Form 5329 revised to conform to the recent IRS revision of Form 5329 (Additional Taxes on Qualified Plans and Other Tax-Favored Accounts), which clarifies that exceptions for coronavirus-related distributions are handled like other qualified disaster distributions as Exception 12 for line 2.
•   Recently released IRS documents added (Standard and Premium Levels only) for access from the Tax Preparer Control Panel, including Form 5329, instructions for Form 2210, and IRS Publications 3, 17, 51, 535, and 570.