1997 Macintosh Other Problems & Workarounds

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Reporting Gain from an Installment Sale
Users Affected: This problem affects you if you filing Form 6252, Installment Sale Income, to report gain from the sale of property you owned for more than a year and any one or more of the following conditions apply to you:

1. You received any payments before May 7, 1997; or
2. You sold the property after July 28, 1997 and did not own the property more than 18 months; or
3. The property was a collectible (antique, art, coins and the like).

Problem: Some of your gain is a "28% rate" gain and must be entered manually on Form 4797 or Schedule D.
Solution: Determine the portion of your installment sale gain that is a "28% rate" gain and enter it as follows:

• 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).

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Loading Last Year's TaxCut Return that Includes a Blank Pension Worksheet
Users Affected: Users who are loading last year's TaxCut return that includes a blank Pension Worksheet.
Problem: You may exit unexpectedly from TaxCut if you load a TaxCut return from last year that includes a blank Pension Worksheet.
Solutions:

1. Delete the blank Pension Worksheet in last year's TaxCut return using the 1996 version of TaxCut and try to reload the return; or
2. Download and install Update F.

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Form 6781 Not Included in TaxCut
In order to deliver TaxCut to you as early as possible, Form 6781 (Gains and Losses from Section 1256, Contracts and Straddles) was not included in the 1997 edition of TaxCut. If you need to file this form, download it and the instructions from the IRS Web site.

After you complete 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.

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Electronic Filing - Foreign Address on Form 2555 or Form 2555-EZ
Users Affected: You are affected only if both of the following conditions apply to you:

1. You are filing electronically; and
2. Your tax return includes Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion.

Problem: The IRS will reject your tax return because of a missing post of duty code.
Solution: Please follow the steps below to correct this problem. You do not need to download Update F.

1. From the Forms tab, open Form 2555 or Form 2555-EZ.
2. 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.
   Click here to see the list of post of duty codes.
3. Save your return, and then resubmit it for electronic filing.

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Electronic Filing - Cannot Delete Form 8615
Users Affected: You are affected if all of these conditions apply to you:

1. You are filing electronically; and
2. This tax return is for someone over age 14 as of 1/1/98; and
3. 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."

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.
Solution: Download and install Update F.

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Electronic Filing - Form 8814, Parent's Election to Report Child's Interest and Dividends
Users Affected: You are affected only if both of the following conditions apply to you:

1. You are filing electronically; and
2. The amount on line 8 of any Form 8814 in your tax return is $97.50.

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.
Solution: Please follow the steps below to correct this problem. You do not need to download Update F.
Note: Be sure to check each copy of Form 8814 in your return.

1. From the Forms tab, open Form 8814 and go to line 8.
2. 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.
3. 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.

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Electronic Filing -- Returns with Schedule H
Users Affected: You are filing an electronic return that includes Schedule H.
Problem: If the amounts in line 8 or line 17 of Schedule H includes cents, your return may not qualify for electronic filing.
Solution: Update F does not fix this problem. If you think you might be affected, follow these steps for a workaround:

1. Using the Forms tab, open Schedule H.
2. 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.
3. Go to line 17 and change that amount to the nearest whole dollar (without cents), overriding the current amount.

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Electronic Filing — Returns with Advance Earned Income Credit Payment
Users Affected: Electronic filers with advance Earned Income Credit (EIC) payments.
Problem: If your advance EIC payment shown on Form W-2, box 9 includes cents, your return may not qualify for electronic filing.
Solution: Update F does not fix this problem. If you think you might be affected, follow these steps for a workaround:

1. Using the Forms tab, open Form W-2 Worksheet.
2. 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.

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Electronic Filing - Voluminous Returns
Users Affected: Electronic filers with returns containing more than 40 pages .
Problem: TaxCut may not allow returns over 40 pages to be filed electronically.
Solution: Download and install Update F.

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1040PC Filing - Returns with Form 2441, Child and Dependent Care Credit
Users Affected: You are filing a 1040PC return that includes Form 2441.
Problem: On the printed 1040PC return, the child's social security number is appearing in the field for the child's name.
Solution: Download and install Update F.

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1040PC Filing - Returns with a Form 3800 or a Form 3468
Users Affected: 1040PC filers whose return includes a Form 3800 or a Form 3468.
Problem: Form 3800 and Form 3468 are formatted incorrectly for 1040PC filing.
Solutions:

1. File a standard tax return on paper or file your return electronically; or
2. Download and install Update F.

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1040PC Filing - Returns with Schedule D
Users Affected: You are filing a 1040PC return that includes Schedule D.
Problem: Lines 14, 15 and 16 are formatted incorrectly for 1040PC filing.
Solutions:

• Download and install Update F to file a 1040PC return; or
• File a standard tax return on paper.

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Incorrect Year in Tax Tables
The tax rates in Tax Planning for 1998, found under Kiplinger's Tax Tips, are the official tax rates for tax year 1998, not 1997.

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