NOL

[JJD753]

I have a client who after subtracitng the standard deduction has no taxable income. They are filing to get withholding back from a 1099R. Though they don't need it, if I enter the $600 above the line charitable contribution, it will create a $600 NOL. Hmmmmm! I'm sure that is incorrect somehow. I went back to his 2020 return (the above was for 2021) and entered the above the line charitable deduction of $300 and it created a $300 NOL. Is this a proseries problem? I would not file a return with the NOL, but others might by mistake.

[qbteachmt]

"Though they don't need it,"

Did you mean to state, "They Also made this contribution?"

Or are you explaining making an entry for something that did not happen?

[JJD753]

They do give to charities, but if you haven't any income to write it off against , you don't need the write off. They use the standard deduction  and my preparer, trying to be thorough, asked them if they made any charitable contributions, which they did. the preparer then entered the $600 above the line deduction and it created the NOL on the system. 

[qbteachmt · Accepted solution]

It was reported last year, and there should be a NOL worksheet to assign that as non-business:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/above-the-line-300-char...

[PATAX]

Pro Series does a good job with the nol computation and the nol carryforward ... So I would just go with it. Just my opinion

[JJD753]

Thanks for the link! I’ll try it when I’m back in the office tomorrow.