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!
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1099-R
Distribution With Capital Gain in Box 3
Users Affected: This
problem is limited to a very small number of taxpayers .
It only affects people born before 1936 who participated in a
qualified retirement plan prior to 1974 (or their beneficiaries)
who received a Form 1099-R that includes a Capital Gains amount
in Box 3 AND who selected Item 3 at the top of the TaxCut 1099-R
worksheet. (Item 3 specifies that the distribution is fully or
partially taxable and you wish it to be carried directly to line
16 of Form 1040).
Problem: TaxCut
incorrectly subtracts the capital gain amount (Box 3) from the
taxable amount (Box 2a) when computing the taxable amount for
line 16b of Form 1040.
Solution: Using
the override function, type in the amount shown in box 2a of your
1099-R directly to line 16b of Form 1040. (Make sure to account
for the amounts from any other 1099-R's you may have received
when figuring the amount that should be shown on the 1040).
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Electronic
Filing -- You and Your Spouse Both Claim Employee Business Expenses
(Form 2106)
Users Affected:
Electronic
filers whose tax situation meets all of the following conditions:
- You and your spouse
are each filing a Form 2106, and
- Your filing status
is married filing jointly.
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).
Solution:
To
correct this problem, you will need to download and install the
Update file. As an alternative, you may also file by printing
your return in standard format or using 1040PC.
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Electronic
Filing -- No Control Number (Form W-2,
Box a)
Users Affected: Electronic
filers who leave Box a of Form W-2 blank because their employer
did not enter a Control Number there.
Problem:
TaxCut
disqualifies these returns for electronic filing. The Electronic
Validation Report indicates that the Control Number is missing,
even though the IRS does not require a Control Number.
Solution:
Enter
0 (zero) in Box a of the W-2 worksheet. This will clear the related
error message in the Electronic Validation Report.
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Rental
& Royalty Carryforward Losses
Users Affected:
This error
affects only those users who meet ALL of the following conditions.
If you do not meet all of these conditions, your carryforward
losses will be handled correctly by TaxCut.
- 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.
Problem:
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.
Solution:
The
best way to correct this problem is to download and install the
"Update" program.
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Turned
65 or Became Legally Blind in 1996 Reporting a Refund of State
and Local Income Tax
Users Affected:
You may be affected by this problem only if you
meet ALL of the following conditions:
- 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.)
Problem:
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.
Solution: On
Form 1040, override Item g in the mini-worksheet for Line 10 with
0. This will correct the calculation for Item h on the mini-worksheet.
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Virginia
Residents in ZIP Codes that Begin with 201
Users Affected: Virginia
residents who live in a new ZIP code area beginning with the digits
201 (e.g., 20170) AND who want to file their returns either electronically
or in 1040PC format.
Problem: TaxCut
does not recognize these ZIP code and won't allow these returns
to be filed electronically or in 1040PC format.
Solution:
You will need to install the "Update"
program to correct this problem. After installing the "Update"
you should not have any problems filing electronically or using
the 1040PC format.
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Electronic
Filing -- Unallowed Punctuation Errors
Users Affected: Some
users attempting to qualify for electronic filing.
Problem: When
trying to qualify for electronic filing, the Electronic Validation
Requirements report indicates multiple errors for unallowed punctuation
on Schedule B and displays strange characters.
Solution: Delete
the Schedule B and recalculate your return. Then try to qualify
again for electronic filing. Note: This will not result in the
loss of any tax information since your data is contained on the
interest and dividend worksheets. When you recalculate, your Schedule
B will be re-created.
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Updates