TurboTax 2007 Release Notes (Win/Mac)

Below are federal (1040) release notes for TurboTax 2007 Basic, Deluxe, Premier, and Home & Business for Windows and Mac. We are no longer releasing updates for our 2007 tax year line of TurboTax software.

TurboTax releases are cumulative (that is, the latest 2007 release includes all preceding 2007 releases). The list below begins with the latest federal release.

This update provides a free, quick "stimulus payment return" for persons eligible for a tax rebate if they file a 2007 return. You can use your version of TurboTax software (Basic, Deluxe, Premier, or Home & Business) to file a return on behalf of a family member or friend, or you can use the free edition of TurboTax Online. For more detail, see 2007 Rebates for Social Security, Railroad Retirement and Veterans' Beneficiaries.

This update included the program changes below.

• Facilitates IRS rebate payments by printing the taxpayer's direct-deposit information on returns filed by mail.
• Corrects the data entry issue on Form 1099-MISC.
• Addresses e-file rejection codes that resulted from missing or incorrect dependent information on Form 2441.
• Corrects the issue where the error check prompted for Code F on Schedule K-1 (Form 1120S) even though Code F had already been entered.
• Corrects the issue where Form 5329 was not included in the return when the user requested a tax waiver on the required minimum distribution amount.
• Prompts for unreported tips (Line 10a or 10b) if user enters tips paid out (Line 10e) on Form W-2.
• Removes inaccurate references to "hot water boiler, or gas, oil, or propane furnace" from the Explain This text for Line 5a of Form 5695.
• Addresses the issue in TurboTax Basic where, if the user entered an amount in Box 7 of Form 1099-MISC, and then selected Schedule C, TurboTax displayed the Box 7 amount for two Interview topics. TurboTax now displays the amount for only one topic.

This update included the program changes below.

• Corrects calculation and data entry issues on Form 8801.
• Increases Section 179 limits for Virginia and Idaho, which retroactively conformed to the federal limits enacted in 2007. The Section 179 maximum is $125,000, and the Section 179 threshold is $500,000.
• Redesigned Box 7 of Form 1099-MISC for ease of use.
• Modified the Social Security Benefits Worksheet (Forms 1040 and 1040A) to capture veterans' nontaxable disability income for government calculation of rebate checks.
• Addresses the issue in TurboTax Home & Business where users could not include expenses for leased vehicles placed in service in 2007.
• Addresses the issue in the TurboTax Interview where users could not return to the sales tax screen to change the rate.
• Addresses the issue on Form 1099-R where TurboTax treated an entire distribution rollover (Code G) as a taxable event on some state returns. Now TurboTax correctly handles an entire contribution rollover as a nontaxable event.
• Corrects the issue where Line 15 on Form 8863 did not include the foreign tax credit from Line 51 on Form 1040.
• Addresses e-file rejection code 0428 by checking the box on line 59a of Form 1040 only when Form 4137 is part of the return.
• Addresses Illinois e-file rejection code 0126 by checking that users enter their Payer Identification Number on Form 1099-G.
• Updates mailing addresses on Form 4506.
• Addresses the issue where TurboTax did not report an error if users entered a noncash auto contribution greater than $500 and indicated they had no written acknowledgement from the charity. TurboTax now reports an error. If users do not have written acknowledgement, they need to remove the contribution.

This update included the final form and program changes below.

Final form

• Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness

Program changes

• Addresses e-file rejection code 914 by prompting users for information about day care expenses paid in tax-year 2007 for the prior or next tax year (Form 2441).
• Addresses the issue where users could not file when they indicated payment by credit card but did not enter a credit card number. TurboTax now prompts for payment if the credit card information is missing or incomplete.
• Addresses the issue where returns were rejected because taxpayers were not eligible for the health coverage tax credit (Form 8885). TurboTax clarifies eligibility for this tax credit.
• Addresses confusion in the Interview when the taxpayer and spouse have the same first name.
• Corrects the issue where the AMT difference for incentive stock options was attributed to capital gains when part or all of the difference was ordinary income (Form 6251).
• Clarifies the e-file error message for a taxpayer with unused minister housing allowance when the spouse has earned income.
• After users were told that their return was not eligible for e-filing, the "return is not eligible for e-filing" message is displayed when they choose to file a paper return.
• Addresses the issue where users were not informed when the cost basis was missing from information imported from a financial institution (Form 1099-B). TurboTax now informs users if the cost basis is missing after importing.
• Updates the filing instructions that incorrectly told users to mail Form 8453-OL. Users are not required to mail the form for their electronically filed 2007 return.
• Addresses error rejection code 600 that occurred when users who did not follow the Interview screens inadvertently left out Form 8862. TurboTax now prompts users for information.

This update included the final forms and program changes below.

Final forms

• Form 4136, Credit for Federal Tax Paid on Fuels
• Form 8903, Domestic Production Activities Deduction

Program changes

• Addresses the issue where TurboTax deemed a return "ineligible to e-file" if five or more states (or localities) appeared on multiple W-2s. Now a return is "ineligible to e-file" only if five or more states (or localities) appear on the same W-2.
• Corrects the issue where the TurboTax Electronic Filing Instructions incorrectly indicated refund by check instead of direct deposit.
• Addresses the issue on Form 8889 where the TurboTax checker reported an error on Line 3, which is calculated by TurboTax. Now TurboTax tells users where to enter the information that it uses to calculate Line 3.
• Corrects the standard mileage rate for deductible car expenses in the Interview Help. In 2007, the standard mileage rate is 48.5 cents per mile.
• Addresses e-file rejection code 914 by prompting users for the name and SSN of the qualifying person if day care expenses were paid in tax-year 2007 for the prior or next tax year.
• Addresses e-file rejection code 0063 that resulted when a "head of household" taxpayer who claimed an exemption for the spouse did not enter the spouse's SSN on the return. TurboTax now prompts for the spouse's SSN.
• Corrects the issue where TurboTax did not calculate the penalty (Form 5329) for an early distribution from a Roth IRA.
• Addresses the issue where the description in Box 14 on Schedule K-1 was missing after transferring the 2006 return.

This update included the final forms and program changes below.

Final forms

• Form 1116, Foreign Tax Credit
• Form 1116, Foreign Tax Credit for AMT
• Form 8888, Direct Deposit of Refund
• Form 8910, Alternative Motor Vehicle Credit

Program changes

• Addresses the incorrect "ineligible for e-filing" message displayed after fixing an e-filed return that had been rejected.
• Addresses issue where TurboTax generated an unnecessary statement for Form 8582, which resulted in e-file error code 0052.
• Corrects issues with asset entries and Section 179 depreciation.
• Addresses the issue where returns with credits affected by AMT legislation were rejected (error code 0096) because these forms were e-filed before the IRS was ready to process them.
• Improves the Interview to clarify which hybrid vehicles (make, model year, and date of purchase) qualify for the Alternative Motor Vehicle credit.
• Resolves issues with the dependent type and "Guide Me" for dependents in the Personal Info section of the Interview.
• Addresses the "non-final" error displayed for the worksheet for Form 6251, Alternative Minimum Tax Form 1040A. The worksheet has been available since 1/9/2008.
• Addresses the error-check message displayed if Indiana withholding was greater than 8%. Now the error-check message appears if Indiana withholding is greater than 20%.
• Corrects the issue where previously entered business information was missing after upgrading to TurboTax Home & Business.
• Addresses the issue where the Interview did not accommodate CSA-1099R distributions.
• Corrects the due date for transmittal of 1099s in the W2/1099 Reporter. The due date for 1099s is 2/28/2008. (The due date for W-2s is 2/29/2008.)

This update included the program changes below.

• Resolves error 524 where an update to Form 8829 prevented TurboTax from opening returns.
• Clarifies when users whose returns include credits affected by AMT legislation can expect their refunds if they choose to have their returns held (i.e., get  their refund all at once later instead getting a partial refund sooner).
• Addresses the issue where shares for each lot of multiple-lot, same-day sales of nonqualified stock options were incorrectly allocated to the first lot (Schedule D).
• Corrects issues on Interview screens with small business stock exclusions (Form D, Section 1202).
• Corrects the issue where Form 1040, Line H (additional tax on recapture of a charitable contribution deduction relating to the contribution of a fractional interest in tangible personal property) was not included in the Additional Taxes amount on the Tax Summary.

This update included the final forms and program changes below.

Final forms

• Form 2210, Underpayment of Estimated Tax
• Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen
• Form 3800, General Business Credit
• Form 8582-CR, Passive Activity Credit Limitations
• Form 8801, Credit for Prior Year Minimum Tax
• Form 8889, Health Savings Accounts (HSAs) (Spouse)
• Form 8889, Health Savings Accounts (HSAs) (Taxpayer)
• Form 8915, Qualified Hurricane Katrina Retirement Plan Dists and Repayments (Spouse)
• Form 8915, Qualified Hurricane Katrina Retirement Plan Dists and Repayments (Taxpayer)
• Form 1040-ES, Individual Estimated Tax Voucher 1
• Form 1040-ES, Individual Estimated Tax Voucher 2
• Form 1040-ES, Individual Estimated Tax Voucher 3
• Form 1040-ES, Individual Estimated Tax Voucher 4
• Schedule K-1 (Form 1065), Partner's Share of Income, Credits, Deductions
• Schedule K-1 (Form 1120S), Shareholder's Share of Income, Credits, etc.
• Form W-4, Employee's Withholding Allowance Certificate (Spouse)
• Form W-4, Employee's Withholding Allowance Certificate (Taxpayer)

Program changes

• Addresses errors 532 and 20607 that occurred when correcting an e-filed return rejected by the IRS.
• Addresses the issue where Form 1099-R was sometimes deleted when the Interview topic was revisited.
• Increases the Section 179 deduction limit for Go Zone assets placed in service in a prior year.
• Corrects the issue where some users were prevented from e-filing because TurboTax used an incorrect maximum for New Jersey SDI.
• Corrects the issue with the Continue button on the Choose ESOP Characteristics screen in the Interview (Schedule D).
• Prompts for holding period when "Various" is entered as stock acquisition date so users can designate short- or long-term sale.
• Corrects the issue with the Dependent Type field in the Personal Info section of the Interview.
• Corrects the issue where the taxpayer name and Social Security number did not automatically appear on Form 8801, page 3.
• Corrects the calculated expenses displayed on the Medical Expenses screen in the Interview. Previously the calculated amount was based only on the standard deduction.
• Clarifies information on the Capital Loss Carryovers screen in the Interview.

This update included the final forms and program changes below.

Final forms

• Form 2441, Child and Dependent Care Expenses
• Form 5695, Residential Energy Credits
• Form 6251, Alternative Minimum Tax
• Form 6251, Alternative Minimum Tax Form 1040A Worksheet
• Form 8396, Mortgage Interest Credit
• Form 8615, Tax for Children Under Age 18
• Form 8839, Qualified Adoption Expenses
• Form 8859, District of Columbia First-Time Homebuyer Credit
• Form 8863, Education Credits
• Form 8880, Credit for Qualified Retirement Savings Contributions
• Form 1040A Schedule 2, Child and Dependent Care Expenses
• Schedule R (Form 1040), Credit for the Elderly or the Disabled
• Form 1040, Child Tax Credit Worksheet

Program changes

All

• Resolves the issue where transferred charity information was deleted in ItsDeductible 2007.
• Addresses the issue where the Interview did not accommodate mutual fund splits (Schedule D).
• Corrects the issue where the Interview did not prompt some users who were were 70 1/2 years of age at the end of 2006 about distributions transferred to charitable organizations (Form 1099-R).
• Corrects the navigation loop for users with multiple-lot employee stock sales.

Mac

• Corrects the issue in TurboTax Home & Business where the qualified mortgage insurance premium was not included included in the mortgage interest on the Summary of Home Office Expenses screen (Forms 8829 and 2106).
• Corrects the issue where the federal return did not print with state returns that required it.

This update included the final forms and program changes below.

Final forms

• Home Sale Worksheet
• Form 8829, Expenses for Business Use of Your Home
• Employee Home Office Worksheet
• Schedule K-1 Worksheet (Form 1041) - Estates and Trusts
• Schedule H (Form 1040), Household Employment Taxes (Spouse)
• Schedule H (Form 1040), Household Employment Taxes (Taxpayer)
• Schedule J (Form 1040), Income Averaging for Farmers and Fishermen

Program changes

All

• Makes ItsDeductible feature more visible in TurboTax.
• Corrects the issue with printing W-2s/1099s using the Print & File tab in TurboTax Home & Business.
• Revises the end date for calculation of the 50% State Special Depreciation Allowance (SDA) on the Depreciation Options screen for Iowa, Maine, and Missouri. These states, which had partial conformity to the general 50% SDA, have adopted the new 50% SDA for Qualified Cellulosic Biomass Plant Property (QCBEPP). Note: QCBEPP is supported in TurboTax forms method, but not in the Interview.
• Revises the Special Depreciation Allowance (SDA) defaults on the Depreciation Options screen for Arizona, Georgia, Hawaii, Idaho, Indiana, Massachusetts, Maryland, and Virginia. These states did not adopt the general 30% or 50% SDA, but they have adopted the new 50% SDA for Qualified Cellulosic Biomass Plant Property (QCBEPP). Note: QCBEPP is supported in TurboTax forms method, but not in the Interview.
• Addresses the error on Form 5329, Part VII, Line 43 (HSA contribution credit ) in the case of a prior-year carryover of excess contribution to an HSA. Line 43, previously a data entry field, is now calculated by TurboTax.
• Clarifies payment date of 2007 federal taxes on e-filing screen.

Windows

• Corrects display issues when upgrading TurboTax.

Mac

• Corrects the issue where prior-year state data was not transferred properly.
• Addresses issues with importing, entering, and displaying donations (ItsDeductible).
• Addresses video display issues on Mac PowerPC.

This update included the final forms and program changes below.

Final forms

• Form 1040X, Amended U.S. Individual Income Tax Return
• Form 4868, Application for Automatic Extension of Time to File
• Form 4972, Tax on Lump Sum Distributions (Spouse)
• Form 4972, Tax on Lump Sum Distributions (Taxpayer)
• Form 6781, Gains and Losses from Sec 1256 Contracts and Straddles
• Form 8379, Injured Spouse Claim and Allocation
• Form 8586, Low-Income Housing Credit
• Form 8814, Parents' Election to Report Child's Interest and Dividends
• Form 8815, Exclusion of Interest from Series EE and I U.S. Savings Bonds
• Form 8824, Like-Kind Exchanges
• Form 8853, Archer MSAs and Long-Term Care Insurance Contracts
• Form 8853, Long-Term Care Insurance Contracts
• Form 8857, Request for Innocent Spouse Relief
• Form 8885, Health Coverage Tax Credit (Spouse)
• Form 8885, Health Coverage Tax Credit (Taxpayer)
• Schedule E (Form 1040), Page 2, Supplemental Income and Loss

Program changes

All

• Corrects the issue with edited amounts for charitable item donations.
• Corrects the issue with importing Schedule C information in TurboTax Deluxe.
• Corrects the issue on Form 2106 if an odometer reading was used in 2006, and mileage was listed in 2007.
• Corrects the navigation loop when entering sales of restricted stock shares in the Interview.
• Corrects the issue in TurboTax Basic where all checkboxes on the Any Miscellaneous Income screen were automatically selected.
• Corrects the issue on Form 5329 where the distribution penalty was applied to exempted amounts.
• Corrects text on Form 1040, Line 42, to read "If line 38 is $117,300 or less..."
• Corrects the issue where the ESPP Purchase Lot Summary screen displayed the lot number instead of the number of shares.
• Corrects the issue where Other Miscellaneous Income was automatically selected on the Less Common Income screen.

Windows

• Corrects the issue where TurboTax did not launch after updating.
• Corrects the issue where a primary form was not opened automatically when starting a return.
• Corrects the issue with the error log used to diagnose problems.
• Addresses issues in My Tax Data where overridden fields were not identified if a value was not entered or a value was deleted.
• Corrects payment-by-phone number when upgrading TurboTax.
• Corrects the issue where changes to filing status for a domestic partnership were not reflected on the California Interview screen.

Mac

• Corrects issues with viewing videos in TurboTax.
• Corrects the issue with the Business Code Lookup if a special character is inserted.
• Corrects the error that occurred in Forms method when Print and File was selected from the EasyStep menu.
• Corrects issues with importing a TXF file.
• Corrects the issue with updating the financial partners list in the Import topic.
• Corrects the issue where users could not answer questions about vehicle usage.

This update included the forms and program changes below.

Final forms

• Form 1040, U.S. Individual Income Tax Return
• Form 1040A, U.S. Individual Income Tax Return
• Form 1040EZ, Income Tax Return: Single and Joint Filers with No Dependents
• Form 1040-V, Payment Voucher
• Form 1310, Stmt of Person Claiming Refund Due a Deceased Taxpayer
• Form 2106, Employee Business Expenses
• Form 2106-EZ, Unreimbursed Employee Business Expenses
• Form 2555, Foreign Earned Income (Spouse pages 1 and 2)
• Form 2555, Foreign Earned Income (Taxpayer pages 1 and 2)
• Form 2555, Foreign Earned Income (Spouse page 3)
• Form 2555, Foreign Earned Income (Taxpayer page 3)
• Form 4137, Tax on Unreported Tip Income (Spouse)
• Form 4137, Tax on Unreported Tip Income (Taxpayer)
• Form 4562, Depreciation and Amortization (Form 2106)
• Form 4562, Depreciation and Amortization (Schedule A)
• Form 4562, Depreciation and Amortization (Schedule B)
• Form 4562, Depreciation and Amortization (Schedule C)
• Form 4562, Depreciation and Amortization (Schedule D)
• Form 4562, Depreciation and Amortization (Schedule E)
• Form 4562, Depreciation and Amortization (Schedule F)
• Form 4562, Depreciation and Amortization (Partnership Schedule K-1 Unreimbursed Expenses)
• Form 4562, Depreciation and Amortization (Form 4835)
• Form 4684, Casualties and Thefts Personal Use Property
• Form 4797, Sales of Business Property (page 1)
• Form 4797, Sales of Business Property (Enterable page 2)
• Form 4797, Sales of Business Property (Fully Calculated page 2)
• Form 4835, Farm Rental Income and Expenses
• Form 4952, Investment Interest Expense Deduction
• Form 4952, Investment Interest Expense Deduction (for AMT)
• Form 5329, Add'l Taxes on Qualified Plans (Incl IRAs) (Spouse)
• Form 5329, Add'l Taxes on Qualified Plans (Incl IRAs) (Taxpayer)
• Form 6198, At-Risk Limitations (Schedule C)
• Form 6198, At-Risk Limitations (Schedule E)
• Form 6198, At-Risk Limitations (Schedule F)
• Form 6198, At-Risk Limitations (Partnership Schedule K-1)
• Form 6198, At-Risk Limitations (Form 4835)
• Form 6198, At-Risk Limitations (S Corporation Schedule K-1)
• Form 6252, Installment Sale Income
• Form 8582, Passive Activity Loss Limitations
• Form 8582, Passive Activity Loss Limitations for AMT
• Form 8606, Nondeductible IRAs (Spouse)
• Form 8606, Nondeductible IRAs (Taxpayer)
• Form 8812, Additional Child Tax Credit
• Form 8917, Tuition and Fees Deduction
• Form 8919, Uncollected SS and Medicare Tax on Wages (Spouse)
• Form 8919, Uncollected SS and Medicare Tax on Wages (Taxpayer)
• Form 1040A Schedule 1, Interest and Ordinary Dividends
• Form 1040A Schedule 3, Credit for the Elderly or the Disabled
• Employee Home Office Worksheet
• Schedule A (Form 1040), Itemized Deductions
• Schedule B (Form 1040), Interest and Dividend Income
• Schedule C (Form 1040), Profit or Loss from Business
• Schedule C-EZ, Net Profit from Business (Spouse)
• Schedule C-EZ, Net Profit from Business (Taxpayer)
• Schedule D (Form 1040), Capital Gains and Losses
• Schedule D-1 (Form 1040), Continuation Sheet for Schedule D
• Schedule E (Form 1040), Page 1, Supplemental Income and Loss
• Schedule EIC, Earned Income Credit
• Schedule F (Form 1040), Profit or Loss from Farming
• Schedule SE (Form 1040), Self-Employment Tax (Spouse Long Sch SE)
• Schedule SE (Form 1040), Self-Employment Tax (Taxpayer Long Sch SE)
• Schedule SE (Form 1040), Self-Employment Tax (Spouse Short Sch SE)
• Schedule SE (Form 1040), Self-Employment Tax ((Taxpayer Short Sch SE)
• Form 1040, Child Tax Credit Worksheet

Program changes

• Corrects the issue where the portion of real estate taxes for a home office did not flow automatically to Schedule A. For users with a home office, a new screen in the Interview displays the portion of real estate taxes that TurboTax enters on the home office worksheet.
• Corrects the issue where users inadvertently created an amended return (Form 1040X). The Interview screens for Form 1040X now provide more information about when and how to file an amended return.
• Corrects minor navigation issues.
• Clarifies wording on Interview screens.