IntuitAustin
Intuit Alumni

Right now the program is unable to automatically calculate this because it's a circular calculation. You need taxable income without regard to the NOL in order to compute what the limited NOL amount is, which in turn changes taxable income once you apply the limited NOL to other income. So since it's a circular calculation, it needs human intervention. The diagnostic was created to let you know how to manually adjust it. The diagnostic offers the following resolution:

The program doesn't automate the limitation of post-2017 net operating losses to 80% of taxable income, before taking into account any NOL deduction. You must override the amount of post-2017 NOL carryforward absorbed this year so it does not exceed the 80% of taxable income limit.

I'm submitting an enhancement request to our development team about this, as of right now though, the program requires the override. 


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