The above the line $300 charitable contribution is increasing net operating losses. Also, for taxpayers that don't otherwise have an NOL, if the standard deduction is greater than AGI, a $300 NOL is being generated. Did the IRS intend for the $300 charitable contribution to generate or increase an NOL or is this a software problem? Can't find any guidance that indicates the IRS allow this.
I am thinking the NOL has something to do with a lost contribution deduction. If we were able to itemize and not be able to use up all the contribution deduction, in a normal year we would be able to carryover any deduction not actually used. Maybe IRS is treating this as a contribution deduction carryover and it shouldn't be adjusted. Just thinking.