Products Affected:
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- ProSeries/Idaho Individual
- ProSeries Basic/Idaho Individual
Situation
When the gross income minus net operating loss (NOL) deduction (from Form 1040, line 21) is less than the gross income threshold for filing an Idaho return, the program prints NRF to the left of line 22 of Form 40. This is incorrect handling of the situation. The NOL should not be included in the calculation of gross income for purposes of determining if filing is required.
Solution
Idaho Individual Form 40, line 22 incorrectly displays "NRF" under the following circumstances:
- Idaho resident has a business net operating loss (NOL) from a non-Idaho business and no Idaho loss amount, OR
- The federal amount was significantly greater than the Idaho amount and an amount large enough to offset most, if not all of the federal income and yet end up below the threshold for Idaho filing requirement because the federal NOL amount is not being added back to the Idaho gross income amount used in the calculation to determine the filing requirement.
The NOL should not be included in the calculation of gross income for purposes of determining if filing is required.
Workaround
- On Form 40, line 22 right-click on NRF, choose Override, and delete NRF.
- Manually calculate the tax based on the Tax Tables.
- On line 22, override the incorrect amount with the correct amount.
This situation has been reported to our development team.