Charitable contribution and NOL

[BrianG932]

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?

[Terry53029]

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

[Just-Lisa-Now-]

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?

[sjrcpa]

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

[Just-Lisa-Now-]

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

[PATAX]

SGR I believe is correct ... I also believe you get an NOL for losses from Residential Real Estate ....just my opinion... 

[PATAX]

Should be sjr not sgr...

[Jill1891]

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. 

[Jill1891]

If it's a charitable carry over, that should be on the Schedule A - not the NOL form. This is a glitch in the software - way too many this year. And it wasn't doing this until this week, so some update is causing the error

[PHRCPA]

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?

[IntuitGabi]

@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. 

[danatsmith]

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.

[BrianG932]

I had it come up twice so far this year and I checked the box on the NOL worksheet to not carry over the NOL to next year.  It creates an NOL for this year, but won't impact next year's return.  Hopefully this does not create any other issues within this year's return.

[IntuitGabi]

Thanks for the additional details @danatsmith & @BrianG932 

[IntuitGabi]

Have you opened the NOL Classification Worksheet by clicking "QuickZoom"? After that, the NOL Worksheet line 24 should equal 0. 
Let me know if this helps! 

[IntuitGabi]

One more note--please make sure the returns have FILING STATUS selected.