ProConnect HelpIntuit HelpIntuit

COVID-19 relief: How to apply changes to returns in ProConnect Tax

SOLVEDby Intuit25Updated 1 year ago

This article will help you:

  • Navigate the new forms and calculations on tax year 2021 and 2020 returns due to the CARES Act and other pandemic relief and stimulus legislation.
  • Understand and clear diagnostic reference #54055 in 2019 returns.
  • Find clients' 2019 returns that you previously filed who may benefit from amending their return to apply the relief provisions.

New for tax year 2022:

  • Form 8915-F is used for all retirement disaster distributions and repayments occurring in 2021 and later.

For tax year 2021 returns:

  • Per treasury guidance (Notice 2021-25 ), beginning Jan. 1, 2021, through Dec. 31, 2022, businesses can claim 100% of their food or beverage expenses paid to restaurants.
  • Corporations can deduct qualified relief contributions paid between Jan. 1, 2020 and Feb. 25, 2021, up to 100% of their income. Learn more here.
  • Corporations can deduct certain donations for major disasters paid between Jan. 1, 2020 and Feb. 25, 2021, up to 100% of their income. Learn more here.

Apply key CARES Act provisions to your 2020 returns

Apply the CARES Act provisions ref. 54055 in tax year 2019

The following e-file critical diagnostic will generate on all individual tax returns:

"The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. To apply the provisions of that law, check the "CARES Act provisions" box in the Miscellaneous Information screen. Ref. #54055"

To clear the diagnostic in the 2019 return:

  1. Go to the Input Return tab.
  2. On the left-side menu, select General.
  3. Click on the Misc. Info./Direct Deposit screen.
  4. Select the Miscellaneous section at the top of the input screen.
  5. Check the box labeled Apply the Coronavirus Aid, Relief, and Economic Security (CARES) Act provisions.

You'll need to check this box for every tax return you file going forward to ensure the return is accurate and using the latest tax laws. This feature allows you to only apply the CARES Act provisions to returns you file after the law’s passage, and prevent calculations from changing on returns you previously filed without your knowledge.

This checkbox will apply three key changes to the tax return:

  • Suppress Form 461, so business losses are not limited by it.
  • If Form 8990 is part of the return, a diagnostic will generate alerting you that the 50% limitation is not yet implemented in the program.
  • Apply the latest net operating loss calculations.

Was this helpful?

You must sign in to vote, reply, or post
ProConnect Tax

Sign in for the best experience

Ask questions, get answers, and join our large community of Intuit Accountants users.

Dynamic AdsDynamic Ads