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Release Notes for Version 10.05 Build 388.01, released
Oct 6, 2008
This version features tax changes from the bailout bill, end-months for
child and spousal support, multiple wage lines, several state-specific
enhancements, and numerous small fixes.
Changes for the Bailout Bill: We made the following tax law
changes pursuant to the bailout bill signed by the president on October
3, 2008.
• Alternative Minimum Tax. Extension of increased alternative minimum
tax exemption amount. On a joint return or surviving spouse return, the
exemption amount is $69,950 in the case of taxable years beginning in
2008. For single or head of household, the exemption amount is $46,200
in the case of taxable years beginning in 2008.
• Standard deduction. Additional standard deduction for real property
taxes for non-itemizers. Under the Housing Assistance Tax Act of 2008,
initially available only in 2008, taxpayers who claim the standard
deduction instead of itemizing deductions are permitted to claim an
additional standard deduction for state and local property taxes paid.
The deduction can't exceed the lesser of state and local property taxes
actually paid or $500 ($1,000 for joint filers) (IRC Sec 63(c)(1)). The
bailout bill extends this to 2009 as well.
• Child Tax Credit. $8,500 income threshold used to calculate refundable
portion of child tax credit. For 2008 only, this becomes $8,500.
Child Support and Spousal Support. We made several improvements to child
support and spousal support.
• Added the ability to specify the end-month of alimony and child
support. You may specify the end month in each tier.
• The present value of the spousal support now appears right on the
Alimony screen.
• Alimony Present Value. You may now specify a “what if” alimony amount
on the Alimony PV screen (or Spousal Support PV screen). Also, the
“actual” alimony (if simple) is spelled out on the top of the screen.
• At the bottom of the Alimony PV screen, we now total all columns, not
just the Present Value columns.
• On What-If Analysis, we changed the child support defaults. Child
Support now defaults to the month and year the oldest child is
emancipated.
“New Client” dialog. We have improved the dialog box you see
when you start a new client file, in several ways.
• You may enter both the first and last name of both clients.
• The file name defaults to be the last name of the first client.
• You may more easily view and change the folder where the client file
will be saved.
Alternative Minimum Tax. You now have the option to suspend
the scheduled reversion of the Alternative Minimum Tax baseline amounts
to levels from the year 2000.
Multiple Wage Lines. It is now possible to enter multiple wages
for each party.
Lawyer Tab Income & Expense. We have put a summary and bottom
line on this screen, so you may now see the impact of budget changes and
child and spousal support changes right on the Income & Expense screen.
Lawyer Tab, Quick View. It is now possible to view "more info"
links from the Assets & Liabilities screen, in the Quick View mode.
What-If Analysis. Added “combined” to After-Tax Cash and Cash
Available for Living Expenses, on result screens that show current year
only. This allows you instantly to see which tax situation is best for
the combined after-tax cash flow of both parties.
Send Your File. There is now an option called "passive mode" that
may enable you to send us your data file in situations where you could
not do so before. To select this option, click Home tab > System Info >
Click Here to Set FTP Transfer Options.
Property Settlements. Interest on property settlements, are now
included in taxable income.
Personal Items. For personal items, designated as “Separate
Property,” but unallocated, on the Marital & Sep property report, they
will now appear as Separate property of the person whose property it is.
Previously, they could have appeared as Marital property.
Defined Benefit Pension. Overriding the coverture fraction now
results in the recalculating of the marital portion and separate
portion. Previously, you would have to manually recalculate the marital
portion and separate portion.
Real Estate. Our calculation of home equity now reflects declines
for a negative growth rate.
Debt. Debt had been assumed to exist at the beginning of the
year. Now there is an option to specify that debt was incurred on the
statement date (that is, during the current year).
Exemptions. We were using the wrong “starting” exemption in
future years. We were always using the current year’s exemption, even if
the start year was in the future.
Cash & Investments. If you entered for cash and investments
income but no value, the software was ignoring the income. Now, it is
carrying that income forward each year.
Liquidations. The software now defaults to covering downpayments
by liquidating IRAs if necessary. The results could be too confusing
otherwise, with IRAs not being liquidated when you expect them to be.
This applies only to new client files.
Alternative Minimum Tax. Updated the threshold for married filing
separately to be 50% of the joint threshold, not just the hard-coded
number at 50% of MFJ from the year 2000.
Standard Deduction and Tax Breakpoints. Added inflation-adjusted
standard deduction years through 2099 and tax breakpoint years through
2099. (We had been using the 2038 breakpoints for all years beyond that,
i.e., for years beyond 30 years from now. This had been slightly
overstating the tax in those years.)
Connecticut Child Support.
• It is now possible to specify that a child is not a child of
the current relationship, and also not an imputed child for purposes
of the child support calculation. This is done via a checkbox on the
"more info" screen for a child.
• The calculation of whether that parent was a “low income” parent
on line 30 of the child support guideline worksheet was not always
correct. We have made the correction.
• It is now possible to specify that you wish child support in
Connecticut to be calculated for all income, including income above
the top level on a chart. This is on the Lawyer tab > Quick Child
Support screen.
Connecticut Affidavit. For new files, there is an option to
treat assets and liabilities differently on the affidavit. Now, if you
select this option, marital property will carry 50% of the equity in the
"equity" column; separate property will carry 100%. The effect is that
if you add the equity in the "equity" column for the two parties, you
will get total marital equity. To select this option, click the link at
the top of the Affidavit.
Florida Affidavit. Health insurance now carries automatically to
the Florida. We made a number of other small enhancements and
corrections to the Florida Affidavit.
Missouri Child Support. Default will now be that child qualifies
for support if under age 21. It had been age 18.
New York Child Support. New York child support now looks at
taxable real estate income instead of cash flow, per the guidelines. The
difference is that depreciation is subtracted, and payments on mortgage
principle affect cash flow but not taxes.
Pennsylvania Child Support. Completely revised our presentation
of the Melzer calculation for high-income parents.
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