stateraservices
Level 2
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I'm filing an extension to my client's 2018 1040 with a carryback loss from 2019. Seems to be fine on the federal side. However, on the California side (location of the client business), the carryback loss is ADDED to the AGI as opposed to reducing it. I know that California is presently not allowing 2019 carrybacks, but why would a carryback be adding to the client's gross income?
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George4Tacks
Level 15
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It is a negative for the NOL for federal, but CA does not allow the NOL, so it is adding it back in. For 2019 CA suspended NOL carryback.  You should see not change in CA tax. 

 


ex-AllStar
stateraservices
Level 2
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I know the 2019 NOL isn't allowed by CA. However, actually it does create a change on the CA tax side. Increases it substantially. I'm puzzled why it's being "added back in"; I mean - from where I sit there should be no change at all. What am I missing?

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Just-Lisa-Now-
Level 15
Level 15
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I had this happen with a CA return before....try Deleting the CA return and let it regenerate.  Oh wait, youre using PTO, I have no clue how it works, I was using ProSeries when I had the issue.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
George4Tacks
Level 15
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Did you create the 2018 from scratch or are you adding an "extension?"
What did you add that was new?

ex-AllStar
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stateraservices
Level 2
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Doing an "extension". I'll recreate it from scratch and see what happens.

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