Urgent! NOL Carryforwards limited to 80% of taxable income for individuals. Proseries does not calculate this limitation, please fix!

[Stumpedagain]

Proseries Professional is refusing to efile a return because the total income is less than the refund.  Error happens because Proseries is deducting the entire NOL Carryforward without regard to the 2021 80% of taxable income limitation.  Please fix this, need to file a return.

[TaxGuyBill]

You may need to override the 80% thing.  It is doubtful that Intuit will fix this anytime soon.

[msmith7305]

I'm not sure if PS is working correctly or not. However, the year of the NOL may be playing a part here.

In what year was the NOL created? Makes a big difference as to whether the 80% rule applies. NOLs prior to 2018 are still allowed in full.

So, I can't tell you if PS is set up correctly or not but pay attention to what year the NOL is from.

[TaxGuyBill]

Good point, I missed that this was a carryforward NOL.

[CryptoRoz]

ProConnect is still applying 100% of 2018 NOLs as of today, generating a critical diagnostic, then forcing us to manually calc 2021 NOL absorbed, yet then screws up the NOL statement. Call ProConnect and no one understands. 

[mshores]

This is maddening Intuit. Fix this please.

[david3]

Has anyone figured a way to incorporate the 80% NOL limitation for 2021 in the PS program?

Client has a 2020 NOL carryforward and an NOL in 2021. Are both year NOLs limited to 80% of taxable income before the NOL amounts? 

How do we report this within PS so that there are no errors or e-file issues?

[IntuitGabi]

1040 NOL rule is not supported by ProSeries for 2021 and will be considered for future products. Please continue to leave your comments and votes here. 

[mshores]

Seriously - this shouldn't even be something we have to vote on. It's a rule not a preference.  Just code it please!

[TaxGuyBill]

"1040 NOL rule is not supported by ProSeries for 2021"

I think you mean that tax LAW is not supported by ProSeries, which is unbelievable that the software INTENTIONALLY calculates it incorrectly.

[The_AntiTax_Man]

The original poster @Stumpedagain  posted this thread in February of 2022.

@IntuitGabi what is the status of the Intuit ProSeries update regarding the 2019, 2020, & 2021 NOL deduction 80% of taxable income limitation.  Is Intuit working on a software fix for this?  [Is there a suggested work around on this for remaining 2021 returns on extension?]

@TaxGuyBill  @mshores  @david3