Janitor Bob Posted March 23, 2013 Report Share Posted March 23, 2013 In tax year 2010, client had $12,687 in schedule A deductions. Due to rental losses and no other taxable income, she had AGI of -$2356. So hr taxable income was zero. ATX is taking the amount on her 2010 1040 line 41(-15043) and rolling that over to 2011 as a NOL carryforward....Is this correct? Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted March 23, 2013 Author Report Share Posted March 23, 2013 In 2011, Client again had Sch A deductions that exceeded her AGI by about $9,000...so again zero taxable income. ATX is taking 1040 Line 41 from 2010 (-15,043, which is negative AGI plus Sch A Deduct) and adding that to unused Sch A dedcutions of $9000 from 2011 and making that A $24043 NOL carryforward to 2012 since when can you carry over unused Sch A Deductions that are not charitable donations? Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 23, 2013 Report Share Posted March 23, 2013 Even if the program is correct, you have to delete them since you didn't make the election to forgo carry-back. Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted March 23, 2013 Author Report Share Posted March 23, 2013 The problem was with the non-business deductions....in other years, ATX automatically pulls this from 1040 line 40....For some reason, in 2010 ATX did not do this....and I did not think to check it...shame on me.....so it was erroneously carrying over to later years....I went back to 2010 and entered the Sch A deduction on the NOL worksheet for non-business deductions and the carry-forward was gone. A shameful example of relying too much on the software....I should have caught this in 2010! Quote Link to comment Share on other sites More sharing options...
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