• You are filing Form 1040A.
• One or more of your Form W-2's shows an amount in box 10 (dependent care).
• Your filing status is single, head of household, or qualifying widow(er).

Problem: TaxCut does not enter the amount from line 15 of Schedule 2 (Child and Dependent Care Expenses for Form 1040A Filers) on to line 16 of Schedule 2. As a result, none of your dependent care benefits will be excluded from income, and your child and dependent care credit, if any, may be too high.
Solution: The update corrects this problem.

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Earned Income Credit -- Form 1040-EZ Filers with Tax-Exempt Interest
Users Affected: This problem affects you only if you meet all of the following conditions:

• You are filing Form 1040-EZ.
• You are claiming the earned income credit (EIC).
• You have any tax-exempt interest.

Problem: The calculation to determine your earned income credit does not include tax-exempt interest. As a result, the earned income credit shown on your return may be too high.
Solution: The update corrects this problem.

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Rural Mail Carriers -- Vehicle Expenses
Users Affected: You are affected only if both of the following conditions apply to you:

1. You are a rural mail carrier; and
2. You entered employee vehicle expenses through the Interview.

Problem: TaxCut incorrectly calculates vehicle expenses for rural mail carriers who entered the vehicle's basis in the Interview.
Solution: The update corrects this problem. If you have already entered your vehicle expenses through the Interview, complete these additional steps:

1. Open the Vehicle Worksheet.
2. Delete the amount, if any, on Part 4, line a.

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Vehicle Worksheet -- Vehicles Placed in Service in 1997
Users Affected: You placed a vehicle in service in 1997.
Problem: TaxCut uses the incorrect luxury car limit for vehicles placed in service in 1997.
Solution: The update corrects this problem.

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