State NOL Calculation is Incorrect

Forum|Forum|4 months ago
February 24, 2026
1 reply
10 views

I am putting together a multi-state return for a client that had very little income in the state that they moved to. The Standard Deduction in the state is causing the KNOL sheet to populate and shows a NOL carryover to 2026. The amount should be $0 because the Standard Deduction cannot create an NOL carryover.

Can anyone help me figure out how to either suppress this calculation from taking place or let me know how to modify the forms so that the NOL goes to $0?

This is for a KY return. Total taxable income is $84 and standard deduction is $3,270. I tried making adjustments in the KY modification section, but nothing I put into the Override section seems to make an adjustment.

ProConnect Tax

Intuit_Kallana

Level 7

Hi @AccountingExecs , if you go to Income --> Net Operating Loss --> Federal Net Operating Loss screen. In the upper right-hand corner, there will be a blue link "Cur. Yr. NOL/Misc.". Click on that and the state NOL carryover field will be right at the top. Enter "-1" for zero in ProConnect and set the state to KY. If you need further assistance, please contact Proconnect Support.

AccountingExecsAuthor

Level 3

The state option in the screen shot that you shared is not showing on my side. Is there something that I need to do get that to show? the client moved to Kentucky in July from Texas, is that causing an issue? I have the Multi-state return box check.

Christopher W. Kent

Intuit_Kallana

Level 7

Just to verify you are in a Form 1040 correct, or is it a different return type? I assumed 1040.

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