2001 Windows Important TaxCut Alerts

Itemized Lists
Users Affected: You are affected by this problem only if you meet both of the following conditions:

• You used the itemized list feature in the first TaxCut release (Federal Version 4301)); and (Note: To find out which release of TaxCut you are using, go to the Help menu and click About TaxCut.)
• You have updated to the most current version of TaxCut.

Problem: The sum of the itemized list entries will not be updated with the correct totals until you revisit the lists. The individual itemized list entries are correct. They are not affected by this problem.
Solution: You will need to manually open each itemized list that you created, then save it. Follow these steps to correct the total for each itemized list:

1. Go to the interview screen or form that contains the field with an itemized list.
2. Move the cursor to the field containing the itemized list and click the Entry Info button to the left of the field.
3. Click the Itemize tab, and then click OK to close the window. The correct total will now appear in the field.

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Home Mortgage Interest: Calculating Points
Users Affected: You are affected by this problem only if you meet both of the following conditions:

• Your home mortgage ended in 2001; and
• You are amortizing points.

Problem: Special rules, which need clarification, apply if your home mortgage ended in 2001.
Solution: Follow these instructions when completing the Home Mortgage Interest interview.

1. If your mortgage ended in 2001 and you did not refinance with the same lender, on either the Other Amounts or the Interests and Points screen, enter only those points you didn't deduct in an earlier year in the field for your amortizable points.
2. If your mortgage ended in 2001 and you refinanced the mortgage with the same lender, you can't deduct the remaining balance of spread points. Instead, treat the remaining balance as points that must be amortized over the life of the new loan.

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Home Mortgage Interest: Definition of a Second Home
Users Affected: You are affected by this problem only if you own a second home.

Problem: In determining itemized deductions, TaxCut asks if you paid mortgage interest on a principal home or second home. For interest on a second home to be deductible as residence interest, you must do one of the following:

• Not rent the home at all during the year; or
• Use the home for personal purposes for more than 14 days or 10% of the number of days the home is rented

Ordinarily, you can treat only one home as your second home during any tax year.

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Child with Investment Income: Form 8615, line 18
Users Affected: You are affected by this problem only if you meet both of these conditions:

• You have a child under age 14 with more than $1,500 of investment income; and
• The amount on line 8 of Form 8615 is at or below the following thresholds:
• Single $27,050
• Married filing jointly or Qualifying widow(er) $45,200
• Married filing separately $22,600
• Head of household $36,250

Problem: Line 18 on Form 8615 may not calculate correctly.
Solution: Override line 18 on Form 8615 with the number shown on line 17, by following these steps:

1. Open Form 8615 and note the amount shown on line 17.
2. Click on line 18, and click the Entry Info icon (the green button to the left of the line).
3. In the Entry Info dialog box, check the Override checkbox, and enter the amount from line 17.
4. Click the OK button, then click the Close Form button.

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Interview: Child with Investment Income
Users Affected: You are affected by this problem only if you meet all of these conditions:

• You have a child under age 14 with more than $1,500 of investment income.
• The amount on line 6 of Form 8615 is at or below the following threshold:
  • Single $27,050
  • Married filing jointly or Qualifying widow(er) $45,200
  • Married filing separately $22,600
  • Head of household $36,250
• The amount on line 8 on Form 8615 exceeds the above thresholds; and
• The parent had a tax liability on his/her return; and
• You used the interview to complete Form 8615.

Problem: The interview may not have given you the opportunity to complete lines 9e through 9h, and line 10. Line 18 of Form 8615 may not calculate correctly.
Solution: The update corrects this problem.

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