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client has NOL carried over from 2023 (from all K-1s). NOL carryover amount is higher than his 2024 taxable incomes. I assume we can only deduct up to 80% of his 2024 taxable incomes (that Lacerte said we have to enter the absorbed amount.)
This client also has social security incomes, it looks his taxable social security will be changed when we claim NOL deduction. Just wondering, when calculate his taxable incomes, do we use 100% social security incomes? If not, any good way to figure out taxable incomes when social security taxable incomes will be changed?
Thank you.
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The 2024 TI appears on a statement after the 1040 and forms. Multiply that amount by 80% then input that into the NOL input.
do we use 100% social security incomes?
No
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Sorry, what does "TI" mean?
Can you tell me which forms' tab I should check?
Thanks.
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Taxable income
You're using lacerte? If so, then see the Forms Tab on the left, click on Statements
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I think I saw taxable income for NOL calculation in the statement. But that taxable incomes automatically includes NOL carryover. When I took away carryover NOL and apply 80% for deduction, his taxable social security changed.
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Are you sure?
Input -1 to your Detail Sheet 15, NOL, Code 46-47m amount absorbed in 2024. Then compare this new TI to the previous amount.
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I think I can't help so I advise reading the rules.
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Thanks. guess we may have to play around to get number closed to 80%.
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It seems to be a circular calculation doesn't it. The absorbed NOL changes TI, which then changes the taxable SS, and in reverse too. I'm missing something and I'm glad you brought this up.
