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Release Notes for Version 10.01 Build 382.01, released
January 2, 2008
This release updates the software copyright notices to 2008, updates
taxes to 2008, allows for longer footnotes, and allows for a more
sophisticated method of reinvesting income.
1. Software Notices. The copyright notice, version number on the
installation screen, etc. are now updated to 2008.
2. Tax Updates. Previously in 2007, we had estimated what the
2008 tax rates and brackets would be. In December, the IRS published the
actual tax rates and brackets for 2008. Our estimates were very close,
and so you will notice little if any change in the results as a result
of this updating from our estimated numbers up to the actual numbers.
The numbers that were updated include the tax brackets; exemption
amounts; the standard deduction amounts; phaseouts for exemptions,
itemized deductions, and the earned income credit; and the thresholds
for FICA tax.
3. Longer Footnotes. In this version of the software, it is now
possible to enter footnotes of up to 1000 characters. Also, you may now
put carriage returns inside of footnotes, by pressing Ctrl+ Enter.
4. Reinvested Income. Previously, reinvested income on
Accumulated Savings was represented as a single after-tax number. This
was a good estimate, but it did not allow for a few next level of detail
things. It did not allow for precision in cases where the investment
income itself would put the individual in a different tax bracket. It
did not allow for the differential tax impact of tax-free versus taxable
income. And it did not allow for the return to be segmented into current
income versus appreciation. In the current release, you express your
return on Accumulated Savings as a pretax rate of return. You may also
specify rates for different aspects of the return: interest, dividends,
capital gains, tax-free, and appreciation. The total return is the sum
of these five rates. The first four types of return (interest,
dividends, capital gains, and tax-free) are taxed appropriately and the
cash flow goes into current income. The last type of return,
appreciation, is not taxed and simply increases Accumulated Savings
directly. We have also introduced two new reports, a tax report and an
investment income report, showing how the reinvested income flows into
taxes and current income, respectively.
5. Automatic Calculation of Child Support. If Family Law Software
calculates child support for your state, there is a checkbox that you
can check to have that child support amount automatically calculated.
Previously, you had to check that checkbox, and so child support would
not become part of the cash flow analysis unless you explicitly
specified that it would. Now, that checkbox is checked by default, so
that child support automatically becomes part of the cash flow analysis,
unless you specify to the contrary.
6. Default Age for IRA Distribution Increased. We have increased
the default page for IRA distributions from age 65 to 866. That way, the
wage income and in the 65th year and IRA income distribution begins in
the 66th year. This avoids a bump of income in the 65th year. Of course,
you may easily change this default distribution year by going to the IRA
"more info" screens.
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