All States - Support for 16 Color Display

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Arizona - Schedule A(PY) and Schedule A(PYN) - Miscellaneous Deductions
Users Affected: You are affected only if all of the following conditions apply to you:

1. You are an Arizona part-year resident; AND
2. You claimed miscellaneous itemized deductions on Schedule A of your federal return; AND
3. Your miscellaneous itemized deductions do not include gambling losses.

Problem: TaxCut does not include your federal miscellaneous itemized deductions when calculating your Arizona itemized deductions.
Solution: Follow the steps below to correct this problem. You do not need to download an update.

1. From the Forms tab in the Arizona State Edition, open Schedule A(PY) or Schedule A(PYN).
2. Note the amount on line 15.
3. Go to line 21.
4. Enter the amount from line 15 on line 21. 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. Note the amounts on line 14 and line 21.
6. Go to line 22.
7. Add the amounts on line 14 and line 21; and enter the total on line 22. Again, 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.

TaxCut will automatically recalculate your Arizona itemized deductions.

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Arizona - Schedule A(PY) and Schedule A(PYN) - Interest Income from State, Municipal, or Private Annuity Bonds
Users Affected: You are an Arizona taxpayer who earned interest during 1997 from State, Municipal Bonds or Private Annuity bonds.
Problem: TaxCut may incorrectly calculate your Arizona taxable interest income from these sources.
Solution:

• Download and install the Arizona update.
• TaxCut will automatically recalculate your interest income and make the necessary adjustments to your return.

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Arizona - Form 140A Prints Instead of Form 140
Users Affected: You are affected if either of the following conditions apply to you:

1. You filed a federal Form 1040A and you are required to file Arizona Form 140;
   OR
2. You qualify to file Form 140A but want to file Form 140.

Problem: TaxCut prints a blank Form 140A instead of a completed Form 140.
Solution:

1. Download and install the Arizona update.
2. From the Forms tab in the Arizona State Edition, open the Background Worksheet.
3. Go to line 4 and check the box for Form 140.

TaxCut will now print Form 140.

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California - Reporting Child's Investment Income on Form 3803
Users Affected: This problem affects you only if both of the following conditions apply to you:

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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Connecticut - Alternative Minimum Tax for Connecticut Residents
Users Affected: This problem affects you only if all of the following conditions apply to you:

1. You are a Connecticut resident filing Form CT-1040; AND
2. You do not owe any federal Alternative Minimum Tax; AND
3. The calculated Connecticut minimum tax on Form CT-6251, line 26 is greater than 0.

Problem: TaxCut incorrectly calculates Connecticut minimum tax on Form CT-6251.
Solution: The Update does not fix this problem. If you think you may be affected, follow these steps for a workaround:

1. From the Forms tab in the TaxCut Connecticut State Edition, open Form CT-6251.
2. Go to line 26 and enter 0. The Calculated Entry dialog box will appear when you attempt to enter the new amount.
3. Make sure 0 appears in the New Value field, and then click the Override button.
    

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Indiana - Form IT-40X - Amended Individual Tax Return
Users Affected: All users filing Indiana Form IT-40X, Amended Individual Tax Return.
Problem: TaxCut may incorrectly carry line 4, State Adjusted Income Tax to line 14, Other Credits. As a result, the refund on line 19 or the amount due on line 20 may be incorrect.
Solution: Download and install the update. TaxCut will automatically recalculate Form IT-40X.

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Indiana - Renter's Deduction for Full-Year Residents
Users Affected: This problem affects you only if all of the following conditions apply to you:

1. You are filing as a full-year resident on Form IT-40; AND
2. You have taken a renter's deduction on Form IT-40, Box A (at the top of page 2); AND
3. You did not enter any additional deductions on Schedule 1.

Problem: TaxCut does not carry the amount of the renter's deduction on Form IT-40, Box A to Form IT-40, line 6.
Solution: Download and install the update. TaxCut will automatically calculate the correct renter's deduction.

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Indiana - County Tax Rates for Benton County Residents and Workers
Users Affected: You live or work in Benton County, and you pay Indiana county tax.
Problem: The Indiana Department of Revenue announced that the Benton County tax rates printed in the instructions for Schedule CT-40 were incorrect. Because this announcement came after we shipped the Indiana State Edition, the rates included in the TaxCut online state instructions are also incorrect. Entering these rates will cause an incorrect county tax calculation on Form CT-40, line 4 (Form CT-40PNR, line 4 for part-year/nonresidents) and on Form IT-40, line 14 (Form IT-40PNR, line 12 for part-year/nonresidents).
Solution: Download and install the update. TaxCut will automatically calculate the correct county tax rate.

Correct Benton County Rates
Resident Rate — .0125
Nonresident Rate — .005

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Massachusetts - Massachusetts Schedule X - Taxable IRA Distributions
Users Affected: You are affected if both of the following conditions apply to you:

1. You received an IRA distribution in 1997; and
2. All or a portion of the IRA distribution is taxable in Massachusetts.

Problem: TaxCut incorrectly calculates Schedule X, line 2 by subtracting contributions previously taxed by Massachusetts from the total amount distributed to date.
Solution: Follow the steps below to correct this problem. You do not need to download an update.

1. Subtract the portion of your IRA/Keogh distribution that is tax exempt for Massachusetts purposes from the taxable amount of your IRA/Keogh distribution shown on your federal return.
2. Note this amount. It is the taxable portion of your IRA/Keogh distribution.
3. From the Forms tab in the Massachusetts State Edition, open Schedule X and Y, Other Income and Other Deductions.
4. Go to line 2 and enter the taxable portion of your IRA/Keogh distribution noted in step 2. 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.
    

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

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Pennsylvania - Dividends from Mutual Funds that Invested in U.S. Obligations During 1997
Users Affected: You are a Pennsylvania taxpayer who earned dividend income from Mutual Funds that invested in U.S. Obligations during 1997.
Problem: TaxCut incorrectly reports dividend income from mutual funds that invested in U.S. Obligations as taxable income on PA Schedule B. These dividends are not taxable for Pennsylvania purposes and should not be included on PA Schedule B.
Solution: Download and install the update. TaxCut will automatically calculate the correct taxable dividend income.

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Pennsylvania - Dependents Claiming Tax Forgiveness Credit
Users Affected: This problem affects you only if both of the following conditions apply to you:

1. Your Pennsylvania return includes a tax forgiveness credit on Schedule SP, Part D, Line 16; AND
2. You are claimed as a dependent on the return of a taxpayer who is not eligible for the tax forgiveness credit.

Problem: TaxCut calculates the Special Tax Forgiveness Credit even though you are not eligible.
Solution: Download and install the update. TaxCut will automatically recalculate the correct Special Tax Forgiveness Credit.

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South Carolina - Form SC1040NR - "Age 65 or Over Deduction" for Part-Year Residents
Users Affected: You are affected only if all of the following conditions apply to you:

1. You were a part-year resident of South Carolina; AND
2. You are claiming the "Age 65 and Over Deduction" on Form SC1040NR, line 40; AND
3. You are married and filing a joint return; AND
4. Your spouse is under 65 years of age or is not otherwise eligible for the deduction.

Problem: In order to calculate the "Age 65 and Over Deduction," you must use Worksheet C to allocate any joint income. After we released the South Carolina edition of TaxCut, the South Carolina Department of Revenue revised Worksheet C in the 1997 instructions for Form SC1040NR. Consequently, the Worksheet C instructions included in TaxCut are incorrect.
Solution: This problem does not require a TaxCut program update. Instead, download the revised instructions for Form SC1040NR from South Carolina's Department of Revenue Web site. Then use the revised Worksheet C to calculate the "Age 65 and Over Deduction."
These instructions are in PDF format and require that you have Adobe's Acrobat Reader installed on your computer in order to read, open and print the PDF file. If you do not have Acrobat Reader, you can download a free copy of this program at http://www.adobe.com.

Note to Form SC1040 Users: While South Carolina also revised Worksheet C in the 1997 instructions for Form SC1040, TaxCut correctly calculates this worksheet for you. You are not affected. If you want to review the revised instructions, you can also download them from South Carolina's Department of Revenue Web site at http://www.dor.state.sc.us/txfmcont97.html#iit.

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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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Wisconsin - Form 1, Schedule 1 - Additions to Income
Users Affected: You are affected only if both of the following conditions apply to you:

1. You are filing a Wisconsin Form 1, Income Tax for Residents; AND
2. The amount of "Other income" reported on your federal Form 1040, line 21 includes a net operating loss carried over to 1997.

Problem: TaxCut enters the 1997 federal net operating loss carryover as a negative amount on Wisconsin Form 1, Schedule 1 - Additions to Income. As a result, this amount is subtracted from the federal adjusted gross income rather than added to it as required for Wisconsin tax purposes.
Solution: Follow the steps below to correct this problem. You do not need to download an update.

1. From the Forms tab in the Wisconsin State Edition, open Form 1.
2. Scroll down to Schedule 1, lines b and c of the Mini-Worksheet for Schedule1 and Schedule 2 on page 2 of the form.
3. Enter the amount appearing on line b as a positive number.
4. Enter the amount appearing on line c as a positive number.

   The Calculated Entry dialog box will appear when you attempt to enter the new values. Enter the correct amount in the New Value field, and click the Override button.
    

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Wisconsin - Temporary Recycling Surcharge for Business Income
Users Affected: You are affected if all of the following conditions apply to you:

1. Your gross business receipts reported on the Temporary Recycling Surcharge Worksheet, Part 1: Business Gross Receipts, line 4, are less than $4,000; AND
2. Your net business income on line 9 of the worksheet is greater than 0; AND
3. A $25.00 temporary recycling surcharge appears on Form 1, line 17 (or Form 1NPR, line 45 part-year/nonresident).

Problem: TaxCut calculates a $25 temporary recycling surcharge even though you are not subject to the surcharge for your business income.
Solution: Download and install the update. TaxCut will automatically recalculate your temporary recycling surcharge.

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Wisconsin -  Itemized Deduction Credit for Wisconsin Part-Year and Nonresident
Users Affected: You are a Wisconsin part-year resident or nonresident who may be entitled to claim the Wisconsin itemized deduction credit.
Problem: TaxCut does not carry amounts from your federal Schedule A to Wisconsin Form 1NPR, Schedule 1. As a result, your taxable income may be overstated.
Solution:

1. Download and install the Wisconsin update.
2. From the Q&A tab in the Wisconsin State Edition, select the Q&A topic, Schedule 1- Wisconsin Itemized Deduction Credit.
3. Complete the Q&A topic.  

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