I spoke with IDOR and am supposed to get a call back from someone who knows more.  While talking with her though, I'm thinking it is a Lacerte issue.  The instructions say line 4 of Part II is IA1040 line 4 (without accounting for the Iowa pre-2023 NOL adjustment from Schedule 1).  I was reading that as "without accounting for the NOL adjustment".  

But if we can keep the federal NOL adjustment in that calculation, then yes, my client's income is a large positive number on IA1040 line 4 and I would think should show up on the IA124 Part II line 4 and allow a large Iowa NOL.  Is that what you are thinking?

If I get that call back from IDOR I will update and maybe we need to call Lacerte.