I am the sole owner of the S Corp. I had NOL in 2021 which was reflected on my K-1.
Why is TurboTax giving me this error while doing the California error check? It's my understanding NOL's can be carry forwarded 20 years. Since I have a NOL, my income is definitely less that $1 million, so the suspension should not apply to me S Corp.
I also read that California suspended the NOL carryover for 2020 and 2021:
Suspension of NOL carryover deduction
For taxable years 2020 and 2021, California suspended the NOL carryover deduction. Both corporations and individual taxpayers may continue to compute and carryover an NOL during the suspension period. Different rules apply depending on the amount of income per year.
For the 2022 taxable year, the net operating loss suspension has been repealed.
The suspension does not apply:
For individual taxpayers, if they have net business income or modified adjusted gross income of less than $1 million.
For corporate taxpayers, if their income subject to California taxation is less than $1 million.
NOL deductions disallowed during this time period will be extended for each year they are suspended.
Questions:
How do I fix this error?
Should I just ignore the error?
