New Tax Law Comparison Summary - The program includes a summary of the new tax provisions affecting 2022 tax returns, comparing 2022 to both 2021 and 2020. The Tax Law Comparison can be viewed by selecting the Help menu at the top of the the program, then Tax Provisions Comparison.
TaxBook Configuration - You no longer need to enter an activation code in the Configuration menu to be able to access the TaxBook. Rather, once you sign up you simply click the TaxBook icon in the toolbar at the top of the program to go to the TaxBook website where you will enter your login credentials.
Bank Products Changes - The banks have broadened their approval criteria by including the state refund amount(s), if any, in the process. In prior years, the federal refund had to be above a certain amount to be able to qualify to utilize a bank product, but beginning this year the state refund(s) total will also be included. Thus, more of your clients may qualify to use a bank product.
Web Reports - Web Reports now includes a report summarizing business returns.
Customer Portal - The customer portal has several improvements:
- Your clients who have used the Customer Portal will now be able to see the status of their return, including their amended return, in the portal.
- When your client signs a document in the customer portal, you will be notified in the program's Chat function.
- The size of documents you can upload has been increased.
COVID Provisions - The COVID provisions added to the program in 2020 and 2021 are gone. See the Tax Provisions Comparison for a full discussion.
Taxable Scholarships - Up to the 2021 program, taxable scholarships are entered under the Other menu in the W-2 menu. Beginning in 2022, they are entered under the Other Income menu.
Form 5329 early distribution exception codes - Up to tax year 2021, there were 12 exceptions to the early distribution penalty, with #12 being "Other". The IRS has now expanded the list to 20 codes, with codes 12-19 being the specific reasons that used to fall under the Other category, and #20 indicating that more than one code applies. There is no longer an Other code.
Gambling income not reported on Form W-2G - The W-2G menu now includes a line to enter the total winnings not reported on Form W-2G. This is where you will enter gambling winnings such as work sports pools and illegal gambling.
Unreimbursed partner expenses - Line 14 in the partnership K-1 menu has been enhanced to include the ability enter the partner's business use of home and business mileage as well as other unreimbursed partner expenses. (The mileage rate changed during 2022, so when entering business mileage here (as well as in Schedules C or F) you will enter the mileage for two time periods, from January 1 to June 30 and from July 1 to December 31.)
Form 7203 - This form is included in the individual return as the IRS now requires it for tax returns that include a Schedule K-1 from an S corp in any of these situations:
- The shareholder is claiming a deduction for a loss from the S corp.
- The shareholder received a nondividend distribution from the S corp..
- The shareholder received a loan repayment from the S corp.
- The shareholder disposed of stock in the S corp.
In the individual tax return, Form 7203 is under menu line L in the Schedule K-1 (Form 1120-S) entry menu. Accurately completing this form will require that you know the taxpayer's stock basis and debt basis in the S corp.
Refund Summary improvement - The Refund Summary to the right of the 1040 interactive screen now includes the refund or balance due on the amended return, if it's been prepared.
Washington - The state of Washington has adopted a new Working Families Tax Credit of up to $1,200. The Working Families Tax Credit is based on the amount of the Federal EIC the taxpayer received. TaxSlayer Pro includes the application you can complete to be electronically filed to the state along with the taxpayer's federal tax return. It cannot be mailed.