Hi @AccountingExecs , if you go to Income --> Net Operating Loss --> Federal Net Operating Loss screen.  In the upper right-hand corner, there will be a blue link "Cur. Yr. NOL/Misc.".  Click on that and the state NOL carryover field will be right at the top.  Enter "-1" for zero in ProConnect and set the state to KY.  If you need further assistance, please contact Proconnect Support.

The state option in the screen shot that you shared is not showing on my side.  Is there something that I need to do get that to show?  the client moved to Kentucky in July from Texas, is that causing an issue?  I have the Multi-state return box check.

Just to verify you are in a Form 1040 correct, or is it a different return type?  I assumed 1040.

Hi @AccountingExecs , to see the screen make sure you are switching to the Current Year Net Loss screen as shown in this screenshot first.  Multi-state returns will not affect that screen be available at all.  If you are still having issues getting to it, please give us a call at ProConnect Support where we can walk you through it on screenshare.

Yes, it is a 1040.  I called the support number you gave me and was on the phone for over an hour before getting disconnected. They could not see the State boxes on their side either.  I need to get this return filed soon. Is there any other workaround?

Hi @AccountingExecs  I apologize for the inconvenience.  Can you screenshot while blocking out for me the customer information what you see when you go to the Current Year NOL screen please?  Also, can you provide me your case number from your call today it should be on the survey link that you received.

 Attached us a screenshot of what I see.  I looked in my email, but I don't see a case number or an email.  I talked to Zhane, I think?  I was on the call waiting for a while and then it abruptly ended, so I am not sure what happened.  I appreciate your help.

Ok thank you so much for the screenshot and info.  I will get back to you with how to handle your file shortly, working on it.

Hi @AccountingExecs, we have responded via email from our phone call.  However, just for the purpose of the communities also answering here. 

We have reviewed the file provided.  After review I have been informed that Kentucky does not have a state-specific field on that screen as it follows the Federal carryover rules.  Accordingly, the reason why you could not see the screen I saw was due to the state being Kentucky.  On a return where a state that does allow overrides for efile, i.e. Ohio would be one, the field will appear on that screen as an option.  Also, I was advised under the new rule, carrybacks are not allowed on Corporate but are still allowed for Individual per guidance we have received from Kentucky.  Have a great day!

Just to make sure I understand, the loss that is currently showing on the KNOL for KY is correct?  The reason that the NOL exists is because the standard deduction reduced the taxable DIV and Sch D income below zero.

My understanding is that standard deductions cannot create an NOL.  If the NOL is not allowed due to how it was created, will ProConnect push the NOL to future years?

Let me double check for you, get right back with you on it.

Hi @AccountingExecs, sorry for the delay.  Ok the software program will track the loss, however, when it is time to proforma to 2026 it will evaluate the loss based upon the KY rules and at that time will not carry it to the 2026 return.

Thank you Kallana for your patience and support!  You spent much more time than necessary to help me out, but I appreciate your help in resolving my concerns.

You are very welcome!