The following diagnostic is generating:
NOL #{PrefixNum}: The program doesn't automate the limitation of post-2020 net operating losses to 80% of taxable income, before taking into account any NOL deduction. You must override the amount of post-2020 NOL carryforward absorbed this year so it does not exceed the 80% of taxable income limit.
Solution:
On detail screen 15 in the 'Carryover absorbed in 2019 [O] (-1 if zero)' line, make an entry to override the program calculation for the amount of post-2017 NOL carryover absorbed in the current year, reported on Schedule 1, Other Income. Enter -1 if zero. This entry is required when the amount of a post-2017 NOL exceeds 80% of taxable income, before taking into account any NOL deduction. See IRS Publication 536 and Form 1045 instructions for more information. If ignored this diagnostic will not prevent e-file.
From the IRS Pub 536: "...(b) 80% of the excess (if any) of taxable income computed without regard to deductions for NOLs, or Qualified Business Income (QBI), or section 250 deductions, over the...
The statement produced by LC does not back out the QBID.
Unless I am missing something, the LC statement is wrong.
