- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
It appears that proseries as of 8-5-22 is not handling the NOL 80% limitation on form 1040. Am I correct on this? Current client has NOLs from 2018 and 2019, and 2020, but has taxable business income in 2021. Proseries puts the entire carryover NOL from 2018, 2019, and 2020 on schedule 1 without regard to the 80% limit.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I'm fairly certain this is the case, but how are you guys entering the correct NOL amount without having to override line 8a on schedule 1? OR is overriding the only solution?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
You are correct that ProSeries does not handle the 80% limit.
As far as I know, the only way to do it is to override.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
After messing with this for way too long, I figured out that if I put the the allowed amount for 2021 on the federal carryover worksheet, then it flows without doing an override. Now, I just have to keep good notes to show the amount of carry forward to tax year 2022. I'll also attach an explanation of the NOLs to the tax return.