NOL carryover calculation

[carolynm]

I disagree with a NOL carryover calculation on the ATX worksheet.

My figures:

AGI without NOL carryforward from 2004: 6973

2004 NOL carryforward: 22159

After carryforward agi now: 15186

Standard deduction: 5150

ATX is computing that the taxpayer uses up $6973 in Losses this year, I say it should be $1823 -I've manually completed a carryover worksheet and calculate the $1823 again. Am I filling something in wrong on ATX, or is it calculating the carryover incorrectly?

Thanks

Carolyn

[kcjenkins]

No, you are correct that only 1823 will be used up. However, the ATX program knows that too, and if you look at the worksheet, the carryover will reflect the correct amount. I tested it putting into a return with 44K of income a carryover loss of 75K. Net AGI went to -31K, but the amount in the Deduction in current year column of the worksheet shows 38,638 for my single taxpayer, leaving 36,362 to carry forward. Although on the RETURN it appears that the full 44K was used up, the NOL worksheet knows that it was not.