TaxACT 2002 Software Update Information

Printing Updates:

• Form 1040 - Corrected printing of Form 8859 checkbox (Form 1040, line 52)

Calculation Updates:

• Form 2441 - Limits line 12 of Form 2441 to not include amount reported in Box 1 as wages.
• Form 8582 - Calculation updated on Line 5 when both Line 4 and Line 1d are losses.
• Form 8606 - Transfer of Code T from Form 1099-R to Form 8606, Part III corrected.
• Schedule EIC - Updated to allow Earned Income Credit when a negative AGI exists.
• Schedule K-1 (Partnership and S Corp) - Entry screens for Schedule K-1 updated to properly show unallowed at-risk losses from prior years.

Form/Printing Updates:

• Form 1040X - Corrected print alignment of paid preparer's address.
• Schedule B - Updated to print when total is less than $1,500 but includes Seller Financed Mortgage information.
• Form 8582 - Print corrected for worksheet 4, columns A & D.
• Form 8453 - Print corrected for line 1.
• Form 8812 - Expanded the number of fields that print a zero when applicable.
• Form 8867 - Corrected relationship printing.

Calculation Updates:

• Form W-2 - Corrected invalid alert when Box 12a contained code "R", requiring Form 8853.

Form/Printing Updates:

• The following forms have recently been released by the IRS. These forms can now be printed and e-filed.
  Form 1040-ES - 2003 Estimated Tax Vouchers
  Form 2210 - Penalty for Underpayment of Estimated Tax
  Form 8839 - Credit for Adoption Expenses
  Form 8582 - Passive Activity Loss Limitations
• The following forms have been updated.
  Form 1040-EZ - Printing for Alaska Permanent Fund Dividend amount.
  Form 8880 - Retirement Savings Credit - Taxpayer SSN will print on form.

Calculation Updates:

• Form 8396 - Mortgage Interest Credit - Credit Limitations have been adjusted to allow the higher credit amount when the credit rate is 20% or less.
• Form 8880 - Retirement Savings Credit - Foreign earned income exclusions are added back to Adjusted Gross Income.
• Schedule EIC - Earned Income Credit - Automatically disallows the credit for taxpayers with a foreign address.
• Sale of Depreciable Business Assets - This entry screen now allows for identification of casualty or theft disposals that should not transfer to Form 4797.
• Joint vs. Separate Report - Report updated to include the calculation for Form 8880 - Retirement Savings Credit.

Preparer's Edition Only:

• Preparer's RAL application form - The computation of the second check amount has been corrected to deduct the total fees.