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

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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.

This idea is Under review for TY24 and potentially later versions of TY23. Thanks for your votes and leaving your comments below. 

Status: Under review
Vote now if this is a good idea
32 Comments
TaxGuyBill
Level 15

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

 

msmith7305
Level 7

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
Level 15

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

CryptoRoz
Level 2

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
Returning Member

This is maddening Intuit. Fix this please.

david3
Level 7

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
Community Manager
Community Manager
Status changed to: Open for voting

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
Returning Member

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

TaxGuyBill
Level 15

"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
Level 8

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  

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