Reconciling NY NOL in GA PYR return
I’ve tried fiddling with this and even tried using Gemini and so far no luck. maybe some whiz kid here can help. Here are the basic facts.
Client is MFJ, part year resident NY and GA. The GA residence was only 2 weeks in 2025. I was inclined to just do a full year NY resident return, but spouse has GA wages for the time they lived there.
Client has $113k NOL that is 100% originating from NY; there is no connection to GA. I understand that GA makes you add back the NOL as positive income, but from what I’ve read, it shouldn’t add the full amount back in excess of positive income to create a much bigger GA AGI. However, the program keeps creating an adjustment for the full amount, which creates income over $60k when GA wages were only $2793. Now it appears client owes $5200 even after the income ratio is calculated.
I’ve tried allocating income both on Schedule 3, in the Income/Retirement worksheet, and using some combo of both, and no matter what I do, I either have an error saying entries don’t agree, or client owes some huge amount that doesn't seem right. I could have clients file MFS, but they would be ineligible for credits they otherwise get.
So I am trying to ascertain, first is Proseries correct in adding the entire amount back as income, or is my assumption that it should only be to the extent of the GA wages? - and then second, assuming I’m correct, how do I reconcile this in Proseries? I’ve read the GA statute but aside from saying you have to add it back, there is no further guidance. If I have file these guys MFS I will, but would prefer not to. Hopefully someone encountered this before and figured it out.
