HowardSoft
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P.O. Box 8432
La Jolla, CA 92038-8432
phone: (858) 454-0121
e-mail: support@howardsoft.com
CHECK WEB FOR UPDATES website
(a restricted website for those who have already installed a CURRENT edition of Tax Preparer)

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Updates for 2021 Editions of Tax Preparer
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Release 2021.01n now available

This revision to our earlier releases of the 2021 Edition of Tax Preparer 1040 is now available at ON-LINE UPDATES below. (Partnership Edition 2021.01 and California Supplement 2021.01d are also now available.)

CAUTION: You must update to release 2021.01k or later of Tax Preparer 1040 for an accurate return when the taxpayer received unemployment compensation in 2020. If you claimed the exclusion using a release prior to 2021.01k, see Customer Service Memo CSTP2101 (Rev. 5/10/2021) for special instructions. If you do not, your exclusion may be double counted and a number of other deductions and credits may be inaccurate as a result. (Impact on Form 540 returns: Note that the exclusion does not apply to California Form 540 tax returns because California does not tax unemployment compensation. Therefore, you will have to enter a positive adjustment in a supporting statement for line 8f of Schedule CA, Part I, to add the federal exclusion back to income.)

Click Here to Order

Order Form for prior filing season.

Easy on-line ordering: You can still order programs for the 2021 filing season, for filing amended or late returns for tax year 2020. For the easiest way to order, complete our secure online Order Form. Just click the yellow starburst. With instant acknowledgement of your order, you'll be sure that we received your order. (You can also order by mail or phone. We accept all checks and major credit cards.)

Tax return filing date postponed to May 17 for most taxpayers,
but as late as June 15, June 30, or August 2 for some!

While most taxpayers had to file and pay by May 17 this year to avoid penalties and interest, taxpayers in specified counties of 6 states have more time. Those who live within specified disaster areas in Louisiana, Oklahoma, and Texas have until June 15; those who live within specified disaster areas in Kentucky have until June 30; and those who live within specified disaster areas in Alabama and Tennessee have until August 2. To see the specific deadlines that are postponed and to whom they apply, go to the IRS website at irs.gov/newsroom/tax-relief-in-disaster-situations and click on the PLUS(+) sign beside 2021, where you with find links to IRS notices for specific states. (Peviously, the IRS had announced that Form 1040 tax returns were not due until May 17 this year, and any payment of tax due on those returns was not be subject to penalty or interest if paid by that date. California's FTB followed suit two days later with their announcement that Form 540 tax returns were not due until May 17, with no penalty or interest on payments of tax due paid by that date. However, both agencies also announced that their extension does not apply to estimated taxes; the first quarterly payment of estimsted taxes for 2021 were still due April 15, 2021.)

Impact of American Rescue Plan of 2021

Special procedures for 2020 tax returns

The American Rescue Plan of 2021, enacted March 11, 2021, includes certain retroactive provisions that affect tax returns for 2020, as highlighted recently by the IRS. The following paragraphs tell you how to handle these changes in Tax Preparer.

Unemployment Compensation Exclusion.This retroactive provision allows you to exclude from taxable income as much as $10,200 of any unemployment compensation you received in 2020. However, your "modified" AGI must be less than $150,000 to qualify and the IRS requires you to claim the exclusion in a specific manner. What to do: This exclusion is fully automated in release 2021.01k and later. See Customer Service Memo CSTP2101 (Rev. 5/10/2021) for details.

Suspension of Repayment of Excess Advance Payment of PTC.This retroactive provision suspends for 2020 the requirement to repay any advance payment you received (via a reduction in premiums for health insurance purchased through the Marketplace) to which you are not entitled because of higher than expected income. This provision will affect your tax return if you have an amount on line 29 of Form 8962 Premium Tax Credit (PTC). What to do: In this case, you must use our File Manager to REMOVE Form 8962 from your return, then go to Schedule 2, line 2, and remove the amount previously posted their from Form 8962, line 29. Do NOT file Form 8962 in this case. For more information, IRS notice FS-2021-08. TIP: For any return already filed with an amount on Schedule 2, line 2, you should NOT file an amended return. The IRS will change your return automatically and issue you a refund if applicable.

TIPS on moving Tax Preparer to a new computer or upgrading an old one.

Moving to a new computer? If you bought a new computer and want to copy your prior-year data to that computer for translation, see the last few pages of Chapter 14 of the new User's Guide (pages 14-13 through 14-18). It provides useful information and tips on moving Tax Preparer data from one computer to another, backed by examples for four common scenarios.

NEW: Upgrading old computer to Windows 10? If you upgrade an existing computer to Windows 10, you may encounter printing or start-up problems:

  •   Printing: You may have to update the driver for your printer if graphic forms in Tax Preparer do not print properly. While the Windows 10 upgrade automatically installs the required new drivers for most popular printers of recent vintage, it does not update drivers for older or less popular printers, many of which did not yet have Windows 10 drivers available when Windows 10 was first released. You may therefore have to install a new driver from the website for the manufacturer of the printer, if available.
  •   Start-up (32-bit only): Tax Preparer may not start because of a change in settings that Microsoft's upgrade to Windows 10 imposes automatically for 32-bit versions of Windows 10. To change the settings back to the ones required by Tax Preparer, see Customer Service Memo CSTP1503. (No such problem exists for 64-bit versions of Windows 10, which are generally installed when you upgrade a 64-bit computer to Windows 10.)

Additional help. Some people have had perplexing problems this year for which there were not immediate solutions. These include failure of the installation programs, failure of Tax Preparer to start, inability to access tax data, and inability for e-file transmission software to find e-file output to transmit. All of the problems are caused by either aggressive anti-virus software or non-standard computer setups. However, convenient solutions for all problems are available and are described in two new memos on our Bulletins page:

  •   CSTP1501: How to ensure proper installation and updating of Tax Preparer.
  •   CSTP1502: How to avert inability to run Tax Preparer's start-up .vbs file.

32-bit and 64-bit compatibility!

Since shortly before the 2015 filing season, Tax Preparer has been compatible with all versions of Windows 8, 8.1, and 10, including both 32-bit and 64-bit versions, and all other Windows versions as far back as Windows XP, whether 32-bit or 64-bit. Although greatly modified for 64-bit Windows, the familiar look and feel of Tax Preparer remains the same. You will have no problem installing or running our software on a new Windows 8, 8.1, or 10 computer, most of which are preloaded with a 64-bit version of Windows. However, Windows 10 may require an updated print driver or, for 32-bit versions, a change in default settings as detailed in Customer Service Memo CSTP1503. (Prior to this time, in order to use Tax Preparer on a 64-bit machine you had to install additional software that created a virtual 32-bit machine and then install Tax Preparer within that virtual machine, which could sometimes be difficult and costly.)

TIPS for paid preparers: Don't forget the mandatory annual registration of your PTIN. You must register with the IRS to practice in 2019 as a paid preparer. REMEMBER, you must renew your PTIN annually each year you want to prepare returns for clients. And don't forget about mandatory e-file. (See our 2011 HowardNews for information on both mandatory registration and mandatory e-file.) You are now required to e-file your clients' returns except for returns that cannot be handled by your e-file software or returns that your clients do not want to be e-filed. However, even if you find that you are not required to e-file many of your returns, there are plenty of reasons for adding e-file to your practice anyway. Read Why e-file? on our home page for details.

ON-LINE UPDATES

These on-line updates can be used only by those who have already installed a prior release of the same program for the current filing season. (For the last on-line updates for the prior tax season, click the 2020 EDITIONS button near the top of this page.)

Tax Preparer
(Form 1040)

CLICK HERE
for updates

Release 2021.01n now available.

(Updated 7/13/2021.)

Partnership Edition
(Form 1065)

CLICK HERE
for updates

Release 2021.01 now available.

(Updated 2/23/2021.)

California Supplement
(Form 540)

CLICK HERE
for updates

Release 2021.01d now available.

(Updated 6/23/2021.)

Manuals
(Tax Forms Guides and User's Guide)

CLICK HERE
for manuals

The latest on-screen manuals are also included with all updates.

IMPORTANT NEWS

7/16/2021: 'Early Bird' discount extended.

Our 'Early Bird' 20% discount on Tax Preparer for the next filing season has been extended to July 31 because of our late mailing of the Order Form. To access the new secure on-line order form, go to the Order Form Access Page.

7/13/2021: Release 2021.01n of Tax Preparer 1040 now available.

This release revises Form 1040-X to properly include the Recovery Rebate Credit reported on Form 1040, line 30, in Form 1040-X, line 15. To get the new update and more details on the changes (including changes YOU must make for a previously-created Form 1040-X), go to the Downloads Page.

7/7/2021: Release 2021.01m of Tax Preparer 1040 now available.

This release revises Forms 1040, 1310, and 8949, averts certain e-file errors, and increases free memory. It also adds recently revised IRS instructions and publications. To get the new update and more details on the changes, go to the Downloads Page.

6/30/2021: 'Early Bird' Order Form now available.

Our 'Early Bird' Order Form gives you a 20% discount on Tax Preparer for the next filing season if you order by July 15. To access the new secure on-line order form, go to the Order Form Access Page.

6/23/2021: Release 2021.01d of California Supplement (540) now available.

This release adds FTB Form 5805 (including Form 5805F and the Annualized Income Installment Method in Part III of Form 5805) for figuring the Underpayment of Estimated Tax and revises printouts for Schedule X. To get the new update and more details on the changes, go to the California Downloads Page.

5/17/2021: Release 2021.01c of California Supplement (540) now available.

This release adds FTB Form 3800 for filing returns for certain children. To get the new update and more details on the changes, go to the California Downloads Page.

5/16/2021: Release 2021.01l of Tax Preparer 1040 now available.

This release adds Form 8615 and revises Form 1040 and the e-file form. To get the new update and more details on the changes, go to the Downloads Page.

5/10/2021: Release 2021.01k of Tax Preparer 1040 now available.

This release makes a number of revisions throughout the return relating to the new Unemployment Compensation Exclusion, including the addition of an automatic Unemployment Compensation Exclusion Worksheet to the end of Schedules 1-3 and . several revisions to Schedule 1, the Control Form, and Forms 1040, 8582, 8815, 8839, and 8917, To get the new update and more details on the changes, go to the Downloads Page.

4/30/2021: Release 2021.01b of California Supplement (540) now available.

This release corrects a checkbox misalignment on the graphic printout of Schedule CA, Part II. To get the new update and more details on the changes, go to the California Downloads Page.

4/26/2021: Release 2021.01j of Tax Preparer 1040 now available.
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.

This release revises Schedule 2 and Form 8962 to reflect recent legislation, revises e-file to avert pre-transmission errors in certain forms after Form 1040-X has been created, and adds Form 8839 for adoptions. It also adds the recently revised IRS documents, including Form 1040 instructions and Pubs. 505, 525, and 974, and adds IRS notice FS-2021-08, all to reflect recent legislation. To get the new update and more details on the changes, go to the Downloads Page.

4/25/2021: Release 2021.01i of Tax Preparer 1040 WITHDRAWN 4/26/2021.

4/19/2021: Release 2021.01a of California Supplement (540) now available.

This release revises Forms 3519 abd 3548, revises printout aesthetics for select other forms, corrects graphic printouts when using legacy (DOS) printing of graphic forms, and adds Schedule X, Form 540-ES, and Form 3510. To get the new update and more details on the changes, go to the California Downloads Page.

4/8/2021: Release 2021.01h of Tax Preparer 1040 now available.

This release revises Schedule H and Form 5884, and adds Form 8379. It also adds the recently revised IRS documents: Form 5884 and instructions, Form 5884-A and inctructions, Pub. 550, plus recent tax bills that affect tax year 2020. To get the new update and more details on the changes, go to the Downloads Page.

3/31/2021: Release 2021.01g of Tax Preparer 1040 now available.

This release adds Forms 3468, 4136, and 8801, and revises the Control Form (for 1040-ES), the 1099-DIV Worksheet (for Schedule B), and Form 2555 (for translate). It also adds the recently revised IRS Pubs. 536 and 590-B. To get the new update and more details on the changes, go to the Downloads Page.

3/26/2021: Release 2021.01f of Tax Preparer 1040 now available.

This release adds Forms 2210 and 2210-F (which reflect several benefits of coronavirus tax refief) and adds the recently revised IRS Pub. 463. To get the new update and more details on the changes, go to the Downloads Page.

3/23/2021: Release 2021.01e of Tax Preparer 1040 now available.

This release revises Schedules 1, 3, and B and Forms 1040-X, 5329, 8885, and 8889 to avert potential problems and adds recently released IRS forms, instructions, and publications. To get the new update and more details on the changes, go to the Downloads Page.

3/17/2021: Tax Day extended to May 17!

The IRS announced today that they are extending tax day for Form 1040 series returns from April 15 to May 17, 2021. See IR-2021-59 for details,

3/14/2021: Release 2021.01d of Tax Preparer 1040 now available.

This release adds Form 1040-X (which can now be e-filed!) and Form 1040-ES, and adds Form 8889 to the Standard Level. It also revises calculations for Schedule 1 (line 19) and Forms 5329 and 8606 to reflect recent legislation removing certain restrictions and rules based on age, and automatically reduces QBI on Form 8995 by common deductions. In addition, the e-file form and e-file rules have been changed to reflect recent changes by the IRS. Finally, more than 3 dozen recently released IRS forms, instructions, and publications have been added. To get the new update and more details on the changes, go to the Downloads Page.

2/22/2021: Release 2021.01c of Tax Preparer 1040 now available.

This release adds Forms 2555, 4137, 4972, 8396, 8815, 8828, 8853, and 8889 to the Premium Level software. It also revises Schedule A and Forms 1040 and 8995 to avert potential e-file errors. In addition, it adds recently released IRS forms, instructions, and publications to Standard and Premium Levels, including another IRS revision to Form 5329 instructions related to COVID-19. To get the new update and more details on the changes, go to the Downloads Page.

2/18/2021: Release 2021.01b of Tax Preparer 1040 now available.

This release revises the calculation of taxable social security benefits for line 6b of Form 1040 and adds Forms 2848, 6765, and 4684 to Premium Level software. In addition, it adds recently released IRS forms, instructions, and publications to Standard and Premium Levels. To get the new update and more details on the changes, go to the Downloads Page.

2/16/2021: Release 2021.01a of Tax Preparer 1040 now available.

This release adds Forms 2106, 4562, and 4684 to all levels, Form 8995 to Standard and Premium Levels, and Form 4255 to Premium Level. It also revises Form 5329 for a recent IRS change. In addition, it adds recently released IRS forms, instructions, and publications to Standard and Premium Levels. To get the new update and more details on the changes, go to the Downloads Page.

2/12/2021: Release 2021.01 of Tax Preparer 1040 now available.

The first release for the current tax season, which the IRS opened today, is now available. If you indicated on-line delivery of the software when you ordered, you should have received an email giving you a protected link to the product you ordered. On the other hand, if you indicated delivery on CD, you will receive a CD containing the software soon, as we ship all products today. If you ordered on-line delivery but have not received an email with the appropriate link, be sure to let us know so that we can give you access to the product. Note that we will be releasing important updates to this first release in the coming days, so be sure to Check for Updates frequently.

Prior releases. For details on prior-year changes throughout the tax season, see Changes in Recent Releases for the respective software:

What are the changes?

Because of the convenience of the web, we issue new releases frequently, even when most of the changes are relatively insignificant. Changes are highlighted in the bottom half of the respective download pages. However, if you want more detail about the most significant changes, there are two other places to look:

  •   E-FILE ALERTS. Changes that are of consequence ONLY to e-file returns are documented here. The changes typically avert specific Reject Codes for the e-file return, so if your return is rejected, check this list first to see if you need to update your software and take particular steps to repair your data.
  •   BULLETINS. Changes that are significant for both paper and e-file returns are documented here. Technical Change Notices are issued for each significant change, including the steps you may have to take to repair a return prepared with an earlier release.

Changes that are not documented on either of these pages are less serious in nature, including rewording on some on-screen lines to make entries more understandable, correction of spelling errors, correction of line number references on printouts, and technical changes that have no affect on calculations.

IMPORTANT TIP: After you translate a prior-year return to the current-year format, be sure to VIEW ALL TRANSLATED WORKSHEETS to ensure that the worksheets are recalculated under their new format, and to verify that all entries are proper for the current return. This step is especially necessary this year because of major changes in several worksheets.

This web site last updated October 1, 2021.