Hi to all and hope you have had an awesome tax season.
Client had 2019 NOL from sch C business and for 2021 wanted to use this NOL. I entered the amount on Federal carryover worksheet as positive number and the negative number flowed to Sch 1, so far so good. But in California CA 540 I see NOL number as positive in 8a which it is negative in Sch 1 in line 8a so that it caused number in line 27 in CA 540 column A become more than line 11 in 1040 Federal page 1. However, Column B in CA 540 has numbers because of EDD and nontaxable grant and column C has a number which came from section B-Additional income line 3. FTB said you should file amended and correct line 27 in CA 540. Should I file 3805V? Client received refund less than what has expected.
I really need a help.
Thanks and yes Lisa, Client got a letter just mentioned that they adjusted his refund. I called them and FTB said since line 27 column A in CA 540 is not same as line 11 in 1040. But for me it is important why the line 8a in CA 540 has a positive number while line 8a in Sch 1 has a negative number and how to fix it or what should I do in CA return when we have a NOL carryforward from 2019 or other past years, should I fill out 3805V whenever we have a NOL in Federal part? However, I did it but I can not see any changes in CA540.
Hi again. If it is possible just help me to understand that why I am seeing a positive number of NOL in CA540 line 8a while there is a exact number as negative in Sch 1 line 8a in Federal return which came from FEDERAL CARRYOVER worksheet lines 14a and 14b?
(caveat- I don't use PS)
What is on F 540, Sch CA - line 9 b-2?
Federal and CA NOL's are often different. Sch CA - Line 8 adds back the Federal NOL - THAT's why the numbers are identical. Sch CA - line 9-b2 deducts the appropriate CA amount.
Is your client's income > $ 1M?
Wait... I just re-read the original post.
" 2019 NOL - want to use in 2021"
What happened in 2020?
Thanks for your help, in 2020 client had a loss as well and could not use it to reduce income. Now, he want to use 2019 NOL for 2021. I did not file his return for 2020.
Client income < $1M.
And when I filled out 3805V, the NOL amount did not populate in Sch CA - line 9-b2; so I entered the NOL number in CALIFORNIA CARRYOVER WORKSHEET line 13 and I had finally NOL amount in Sch CA - line 9-b2. Am I right? If not, please correct me.
I really appreciate it.
Hi, May I have your idea please.
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