Updates
- You and your spouse are each filing a Form 2106, and
- Your filing status is married filing jointly.
- You had at least one Rental or Royalty activity in 1996.
- You had a carryforward loss from 1995 for that activity.
- You did not dispose of that activity in 1996.
- You had a gain or no income for that activity in 1996 before subtracting any carryforward loss from 1995.
- You (or your spouse, if filing jointly) turned 65 years old or became legally blind in 1996, and
- You reported a refund of state and local income taxes (Form 1040, line 10 mini-worksheet), and
- You itemized deductions on your 1995 federal tax return.
- You (and your spouse, if filing jointly) were under 65 years old and were not legally blind in 1995. (Note: this is not the same condition as #1.)
- You received any payments before May 7, 1997; or
- You sold the property after July 28, 1997 and did not own the property more than 18 months; or
- The property was a collectible (antique, art, coins and the like).
- If the sale is reported on Form 4797, Sales of Business Property, enter the "28% rate" gain on Form 4797, line 4, column (h).
- If the sale is NOT reported on Form 4797, enter the "28% rate" gain on Schedule D, Mini-Worksheet for Line 11, line d, column (g).
- Delete the blank Pension Worksheet in last year's TaxCut return using the 1996 version of TaxCut and try to reload the return; or
- Download and install Update F.
- You are filing electronically; and
- Your tax return includes Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion.
- From the Forms tab, open Form 2555 or Form 2555-EZ.
- On Form 2555, line
1, or Form 2555-EZ, line 4, enter your foreign address, followed
by two asterisks and the post of duty code. For example, 10
Downing Street, London, United Kingdom**01.
- Save your return, and then resubmit it for electronic filing.
- You are filing electronically; and
- This tax return is for someone over age 14 as of 1/1/98; and
- When you try to qualify your return for electronic filing, TaxCut displays an error message about missing data on Form 8615 - Child With Investment Income."
- You are filing electronically; and
- The amount on line 8 of any Form 8814 in your tax return is $97.50.
- From the Forms tab, open Form 8814 and go to line 8.
- If the amount on line 8 is 97.50, change the amount to 98. The Calculated Entry dialog box will appear when you attempt to enter the new value. Enter 98 in the New Value field and click the Override button.
- When you have corrected all copies of Form 8814 in your return, save your return, and then resubmit it for electronic filing. When you qualify your return for electronic filing, a warning message in the electronic qualification report will indicate that "98.00, on Form 8814 is a risky override." Disregard the message and submit your return.
- Using the Forms tab, open Schedule H.
- Go to line 8 and
change the amount to the nearest whole dollar (without cents).
For example, change $200.49 to $200.00, or $200.50 to $201.00.
The Calculated Entry dialog box will appear when you attempt to enter the new amount. Enter the new amount in the New Value field, and click the Override button. - Go to line 17 and change that amount to the nearest whole dollar (without cents), overriding the current amount.
- Using the Forms tab, open Form W-2 Worksheet.
- Go to box 9 and change the amount to the nearest whole dollar (without cents). For example, change $500.49 to $500.00, or $500.50 to $501.00.
- File a standard tax return on paper or file your return electronically; or
- Download and install Update F.
- Download and install Update F to file a 1040PC return; or
- File a standard tax return on paper.
1996
Macintosh Calculation Problems and Updates Electronic Filing -- Unable To Enter 1997 Date Users Affected: This easily fixed problem potentially affects all electronic filers. But it does not have any impact on the accuracy of your electronic return. Problem: When you get ready to transmit your return electronically, the last screen you see is a "Consent to Disclose." The last field on that screen is for the "Date of Filing." Unfortunately, when you attempt to put in a 1997 date in that one field, the program may insist that you use a date from "this year." Solution: Simply enter a 1996 date in the "Date of Filing" field. For example, if you're filing on February 20, 1997, enter 2/20/96 instead. This date is for internal record-keeping only and is not even sent to the IRS! Return
to Other Federal Problems Return
to Other Federal Problems Problem:
When
qualifying these returns for electronic filing, TaxCut checks
the amount on line 10 of each Form 2106 individually rather than
totaling the line 10 amounts from both Forms 2106. TaxCut does
not qualify these returns and displays a message in the Electronic
Validation Report indicating that the amounts on Form 2106, line
10 and Schedule A do not match. (This does not affect the accuracy
of your return). Return
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If
you meet ALL of the above conditions on any one rental or royalty
activity, TaxCut may not calculate your Deductible Rental Loss
on line 23, Schedule E correctly. Return
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If you are reporting a tax refund in
the mini-worksheet for Line 10 on Form 1040, and meet all of the
above conditions, the calculation of last year's standard deduction
will not be correct. This may cause the wrong amount to be calculated
for Line 10. Return
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Some of your gain is a "28% rate" gain and must be entered
manually on Form 4797 or Schedule D. Return
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Form 6781, manually enter the results on Schedule D as explained
in the instructions for Form 6781. You do not
need to download Update F to correct this problem. Problem:
The
IRS will reject your tax return because of a missing post of duty
code. Return
to Other Federal Problems Problem:
TaxCut
will not allow you to file the return electronically because Form
8615 is incomplete; and it will not allow you to delete the form. Return
to Other Federal Problems Problem:
When
TaxCut carries the amount on Form 8814, line 8 to Form 1040, line
39, it rounds that amount from $97.50 to $98.00. As a result,
the IRS will reject your tax return because the two amounts are
not equal. Note:
Be sure to check each copy of Form 8814 in your return.
Return
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