SO10315 - Early Release Documentation
We would like to present the TaxWorks Early Release CD in preparation for the 2008 tax season.
Also included is your 2008 TaxWorks Privacy Notice. Please retain this copy for your records.
This CD is an early version of the program that provides the opportunity to setup your system prior to the busy tax season. Please note the federal and state forms included on the CD have not been approved for filing; therefore, you will not be able to file any federal or state returns using this CD.
We recommend that you use this CD to perform the following:
After installing and configuring your system, proceed through the following:
Additional enhancements will be addressed in the Reference Manual, which will be available on the website and distributed with CD #1 the first of January.
See Important Notices for Systems attached which may require ACTION due to enhancements, improvements, and corrections to the program.
Note: You may update client files from 2007 to 2008 from the Client Selection screen. However, we are still receiving final forms and instructions from federal and state agencies that may affect the update process, thereby impacting the client’s return. If necessary, a related note will be included with CD #1 or an Alert will be sent instructing you to upgrade, re-process, and re-update 2007 client files.
We look forward to a successful tax season!
Federal Dependent Grid
After the Early Release CD was shipped, we made a few enhancements to the Federal 1040 Dependent Grid, including (1) moving the Status column back into the grid toward the far right where it was last year, and (2) adding two new columns for Insured Dependent and Kidnapped Child after the Status column. In order to receive these changes, please do the following:
Federal 1040 State and Local Income Tax Refund Worksheet
A change was made to the taxable refund worksheet to correctly calculate the 2008 taxable portion of a state and local income tax refund received in 2008 from the 2007 tax return. It does not affect any 2007 tax return calculations, just the forward-looking 2008 worksheet. However, to get a correct 2008 refund worksheet, the 2007 1040 Federal system should be upgraded and all 2007 1040 Federal returns reprocessed before the returns are updated to 2008 (See Upgrade, reprocess 2007 instructions below).
Significant improvements have been made to the update process from 2007 to 2008 in the federal and all state systems. To benefit from these improvements, please upgrade your 2007 1041 Federal system and all applicable state systems. Then, reprocess all the 2007 1041 Federal and all applicable state returns before updating the returns to 2008 (See Upgrade, reprocess 2007 instructions below).
Schedule D
A change was made to the capital loss carry forward from 2007 to 2008 on Schedule D. To receive this change, please upgrade your 2007 1120 Federal system. Then, reprocess the applicable 1120 Federal returns before updating the returns to 2008 (See Upgrade, reprocess 2007 instructions below).
Charitable Contribution Carryover Converted to NOL
A change was made for clients who had a 2007 charitable contribution carryover which was converted to a 2008 NOL Carryover per IRC Section 170 (d)(2)(B) and 2008 Net Operating Loss Carry forward. To receive this change, please upgrade your 2007 1120 Federal system. Then, reprocess the applicable 1120 Federal returns before updating the returns to 2008. (See Upgrade, reprocess 2007 instructions below).
If you prepared any returns in the states below and they resulted in a balance due in the 2007 program, then you will need to upgrade those applicable 2007 state systems and the 2007 state returns before the returns are updated to 2008 (See Upgrade, reprocess 2007 instructions below). The balance due amounts in some instances were not updating correctly to the 2008 program as an itemized deduction on Federal Schedule A (state income taxes paid).
Georgia 1120
The ability to update the Georgia 1120 NOL has been added to the system. Therefore, to update a 2007 Georgia 1120 NOL to the 2008 program please upgrade the 2007 Georgia 1120 system and reprocess the 2007 clients before the returns are updated to 2008 (See Upgrade, reprocess 2007 instructions below).
Hawaii 1120
To update the Hawaii 1120 overpayment from 2007 to 2008, please upgrade the 2007 Hawaii system and reprocess the 2007 Hawaii 1120 returns before updating to 2008 (See Upgrade, reprocess 2007 instructions below).
Michigan 1040, 1041, 1065, 1120, 1120S
The Michigan Department of Treasury has significantly changed the Michigan forms for these systems for 2008. Due to the significant changes, please upgrade your 2007 Michigan returns and reprocess before updating to 2008. (See Upgrade, reprocess 2007 instructions below).
New Jersey 1120 & 1120S
To update the New Jersey 1120 & 1120S NOL’s from 2007 to 2008, please upgrade the 2007 New Jersey system and reprocess the 2007 New Jersey 1120 & 1120S returns before updating to 2008 (See Upgrade, reprocess 2007 instructions below).
New York 1120
Changes have been made to the update feature of the New York 1120 NOL from 2007 to 2008. Therefore, to update a 2007 New York 1120 NOL to the 2008 program please upgrade the 2007 New York system and reprocess the 2007 clients before the returns are updated to 2008 (See Upgrade, reprocess 2007 instructions below).
North Dakota 1040
Last year we added the North Dakota Schedule PT. We have added the ability to update the credit carryover from 2007 to 2008. To update the amounts, please upgrade the 2007 North Dakota system and reprocess the 2007 North Dakota returns before updating to 2008 (See Upgrade, reprocess 2007 instructions below).
Asset Manager
Form 6252, Installment Sale, if the taxpayer/spouse indicator and state indicator needs to be updated, please upgrade 2007 Federal Universal and the applicable federal system and reprocess the returns before updating to 2008 (See Upgrade, reprocess 2007 instructions below).
Open TaxWorks 2007.