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Release Notes for Version 6.10, released June 30,
2004
This release adds child support guidelines for two new states and contains a number of minor enhancements.
New states:
We have added child support guideline calculators for Illinois and Mississippi.
Enhancements and corrections:
1. Liquidations. The software now comes closer to estimating the amount needed for liquidations. Liquidations occur when expenses exceed income, and there are liquid assets that can be sold to meet expenses.
The following paragraph explains why liquidations are not exact: The computation is complex, because the asset sales (liquidations) are taxable. So the software estimates the incremental tax to be paid on the liquidations. It is computationally intensive to estimate correctly for the following reasons:
a. The sales can put the party into a new tax bracket.
b. When we increase the distribution to cover tax on the sales, that increase itself triggers more tax.
c. The sales can increase state taxes, which increase the federal deduction, which decrease federal taxes.
d. The sales can also affect the Alternative Minimum Tax.
We could perhaps find the exact amount to liquidate, but the computation would take so long that it would slow down the overall calculation unacceptably.
So we estimate. This release improves our technique for estimating the liquidation amount, so it will be closer to the actual amount.
2. Defined Benefit Pension Payments. In the first distribution year, defined benefit pension payments now begin in the month of the birth date. Example: If the pension payment is $1,000 a month, and the party reaches retirement age when she turns age 65 in March of 2010, we will show $10,000 of defined benefit pension payments for 2010 and $12,000 of payments for 2011 and subsequent years.
3. New home purchase. It is now possible to specify that a new home will be purchased later in the current year. If the purchase year is the same as the current year, you may "X" the box labeled, "X if not purchased yet." Previously, a new home could not be purchased until the first year after the current year.
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