1. You reported a child's investment income on Federal Form 8814 and/or California Form 3803 (Parents Election To Report Child's Interest And Dividends); AND
2. The child's income is less than $1,300.

Problem: TaxCut may calculate a negative amount on line 5 of Form 3803.
Solution: The Update does not fix this problem. If you think you might be affected, follow these steps for a workaround:

1. Go to the Forms Tab in the California TaxCut State Edition, and open Form 3803.
2. Scroll down to line 5.
3. If a negative amount appears on line 5, override that amount with zero.

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New York - Form IT-360.1 — Standard Deduction for New York City Part-Year Residents
Users Affected: You are affected if both of the following conditions apply to you:

1. You were a part-year resident of New York City during 1997; AND
2. You are taking the standard deduction on your federal return.

Problem: TaxCut uses 1996 standard deduction amounts to calculate your 1997 prorated standard deduction on Form IT-360.1, line 44.
Solution:

1. Download and install the update.
2. TaxCut will automatically calculate your 1997 prorated standard deduction using the correct amounts.

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Virginia - Form 760ES - Incomplete Estimated Tax Vouchers
Users Affected: You are affected if both of the following conditions apply to you:

1. You will be paying 1998 Virginia estimated tax; and
2. The amount on Form 760ES, line 15 is less than $151.

Problem: TaxCut does not complete the Virginia Estimated Tax Payment Voucher for Individuals, Estates, and Trusts if your installment payment is less than $151.
Solution: Complete the following steps to correct this problem. You do not need to download an update.

1. From the Forms tab in the Virginia State Edition, open Form 760ES, Estimated Tax Worksheet/Form 760ES.
2. Note the amount on line 15.
3. Go to the vouchers at the end of the Estimated Tax Worksheet.
4. Enter the amount from line 15 in the "Amount of payment" box on each voucher. The Calculated Entry dialog box will appear when you attempt to enter the new value. Enter the correct amount in the New Value field, and click the Override button.
5. Go back to line 15 and enter 151. This override is necessary in order to complete the vouchers with your personal information; it does not affect the amount of tax due. The Calculated Entry dialog box will appear again when you attempt to enter the new value. Enter 151 in the New Value field, and click the Override button.

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