Question

Does TurboTax apply the 80% income limit on a NOL

Forum|Forum|6 years ago
December 27, 2019
1 reply
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From a previous thread I understand that TurboTax does not calculate my 2018 NOL carry forward for my 2019 return and I will need to do that using the worksheet from the IRS and then TurboTax will allow me to enter the NOL. However, does Turbotax know to apply the 80% income limit for the NOL deduction which was part of the tax law act in 2018. As an example, if my NOL carry forward is $150,000 and that is what I enter into TurboTax but my income is $100,000, TurboTax can only use $80,000 (80% of my income) as a deduction.

Employee

@phil106 wrote:

....does Turbotax know to apply the 80% income limit for the NOL deduction which was part of the tax law act in 2018.....

As of yet, it does not, but then neither does Intuit's professional software at this point (particularly, ProSeries).

See https://proconnect.intuit.com/community/proseries-discussions/discussion/re-80-nol-rules-on-1040/01/40624#M22237

Hopefully, Intuit will address this issue in the next month or so.

As an update just was wondering if this issue has been addressed in the most recent version of Turbo Tax

Employee

@phil106 wrote:

As an update just was wondering if this issue has been addressed in the most recent version of Turbo Tax

It certainly does not appear as if this issue has been addressed.

Moreover, I do not believe it has been addressed in Intuit's professional software at this point, either.

I would further not be at all surprised if it were left to the user to make the calculation manually.