Level 3

Question

Charitable contribution and NOL

Forum|Forum|5 years ago
February 28, 2021
15 replies
98 views

I'm preparing a return for a retired widow with social security, interest and IRA income. Her income fluctuates from year to year depending on IRA withdrawal amounts and this year her income is $11,000 with a standard deduction amount of $14,050. She gave $70 to a charitable organization, which is being claimed as an adjustment to income on line 10b of the federal return. The program is calculating an NOL of $70 and is showing an NOL carryover to next year. Is this correct? A charitable deduction of up to $300 under the Cares Act can create an NOL in the amount of the charitable deduction if income is below the standard deduction? Has anyone seen this?

ProSeries Professional

This topic has been closed for replies.

T

Terry53029

Intuit Community Champion

Why are you filling ? If its only for rebate, don't bother putting the charitable donation,as it will not change anything

J

Jill1891

Level 3

Because tax payers are going to want to see it to know a complete and accurate return was filed. Even if it makes no difference to the bottom line, my clients want to know everything was entered. and when I review the return with them I don't want to have to say I didn't enter because it causes a software glitch.

Just-Lisa-Now-

Intuit Community Champion

I saw this reported over in the Facebook ProSeries group...so the question is, is it supposed to be a charitable contribution carryover, or an NOL when it can't be used in the current year?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

sjrcpa

Level 15

It is not an NOL. There is no business loss on the return. You only get an NOL from business losses.

The more I know the more I don’t know.

Just-Lisa-Now-

Intuit Community Champion

I know the wildfire casualty losses created NOLs for people, is that considered a business loss?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

P

PHRCPA

Level 3

Did you ever get your answer. I am encountering the same situation. Charitable Contribution Carryover is not being reduced by the amount allowed above the line; Congress oversite or computer glitch?

A

Anonymous

@PHRCPA I can look into this... are you experiencing the amount populating into a NOL or is it something else. Can you be more descriptive when you say "allowed about the line". Screenshots help too! Thanks.

D

danatsmith

Level 3

I am having the same issue. The additional $300/$600 charitable which is adding to the standard deduction for nonitemizers is creating a corresponding $300/$600 NOL on the NOL worksheet. It appears the problem is that the additional charitable amount is not carrying over to the NOL classification worksheet which is throwing the NOL computation off by $300/$600. It did this in 2020 program in the early part of filing season, and I was able to override on the NOL classification worksheet to get it as a nonbusiness deduction.

This year am unable to override line 40 in the total col of this classification worksheet. And on a client that I finally overrode the standard deduction line on the classification worksheet (increasing for the add'l charitable) I now get a message that the return has changed by $600 from the one e-filed. It has not!

My issue is two-fold, 1. the problem with the add'l charitable not carrying over to the NOL classification worksheet and 2. ProSeries assertion that the return is now different than the one I e-filed.

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