Watch out for post-TCJA NOL carryforwards not being limited to 80% of taxable income...
Client has a NOL that should have been limited in 2021 software. The NOL statement correctly calculates the amount of NOL they are allowed to take, showing the remainder being carried forward to 2022. When viewing the General Info screen, it shows the correct amount being carried forward.
BUT...on Schedule 1, the entire amount of the NOL is being taken. There is a critical diagnostic that is generated but it does not prevent e-file. Called Lacerte support and they did not seem too concerned about this issue so don't expect a fix anytime soon. Their solution on this diagnostic tells you to override 'carryover absorbed in XXXX [O] (-1 if zero)' but that field is nowhere to be found.
https://proconnect.intuit.com/community/lacerte-diagnostics/53656/ta-p/101823
"NOL #{PrefixNum}: 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-2020 NOL carryforward absorbed this year so it does not exceed the 80% of taxable income limit."
