Depending on the state you're in, sometimes you'll need the earlier return to calculate whether a state refund is taxable on the current return.
I wouldn't enter anything under, say, tax history; I'd prefer that my client be able to distinguish between preparers and only want the data I prepared on the tax history form.
I normally enter the prior year for new clients so I can use the two year comparison. I enter the prior year data on the "two year comparision worksheet" It's also a good exercise to check for any carry overs from the prior year to the current year.
Where do I enter this information? What if they did not have any income in prior year, therefore, did not file a tax return?
Also, is anyone else having problems with the final review continually looping and never completing? I have had basic returns with just W-2's, returns with W-2 and 1099-NEC, returns with W-2 and 1099-R - everyone I have done is not completing the final review (and these are from prior year transfers)?