NOL carryover from prior year entry

[Winnie5911]

Hello,

I need to enter a NOL balance from 2019 return into the system.  The NOL is 100k.  They have 10k of farm net income so I should be using 8k of NOL.  The system is bringing over the full 100k to schedule 1 line 8.

I entered the NOL on the carryover worksheet line 14a.  What am I doing wrong?

Thank you.

[jeffmcpa2010]

Neither you or the software is doing anything wrong. The full carryover shows up on schedule 1. The limitation is in the calculation of the carryforward to the next tax year (2021). Check the right hand column of the carryover schedule and see if you think it has the correct amount carrying forward.

Is there any other income besides the Net Farm Income? NOL's normally will carry against any kind of income, not just where they were generated.

[Winnie5911]

Hello Jeff,

I have to be missing something.  So I have the full loss on the Regular tax NOL worksheet. 

It brings total from line 1040 line 8 &9 from line 8b, as -138k.  Because 1040 line 8 & 9 is carrying over the full NOL from schedule 1 line 8.  Line 23 has the NOL from prior years correct.  Line 24 has 7k (farm income less self employment deductions)

The 1040 adjusted gross income shows -111k. This can't be.

On the NOL classification worksheet, it shows the farm income 10k, self employed insurance and tax deduction = 2k  They have a standard deduction 27.4k. 

Please help.

[sjrcpa · Accepted solution]

The return presentation appears to be correct.

Did you do this "The limitation is in the calculation of the carryforward to the next tax year (2021). Check the right hand column of the carryover schedule and see if you think it has the correct amount carrying forward."

[Winnie5911]

Thank you.

[Winnie5911]

Thank you again.  I just needed a warm-fuzzy I guess.

[sjrcpa]

You're welcome.

[jeffmcpa2010]

Glad we were able to help