Products Affected:
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- ProSeries/Iowa Individual
- ProSeries Basic/Iowa Individual
Situation
When the taxpayer is over age 65 on December 31, 2007, the low income exception is incorrectly calculated on the Form IA 1040, Tax Exemption Smart Worksheet, found below line 26 on Form IA 1040. The correct threshold for taxpayers over age 65 is $18,000 (single filing status) and $24,000 (other than single filing status).
Solution
This situation will be corrected in the Iowa Individual update anticipated to be available online on or about February 22, 2008. Download and install this update when it becomes available. (Go to the Update menu and select Update Installed Products.)
Workaround (prior to update)
Manually override the amount on Form IA 1040, Tax Exemption Smart Worksheet, line A found below line 26 on Form IA 1040. Also, manually override line 2 of the Tax Reduction Worksheet – Filing Status 1, Single, or line 2 of the Alternate Tax Worksheet – Filing Statuses 2, 3, 4, 5, and 6.