I have a prior years net operating loss carryforward. In the current year I have a taxable income of zero, resulting from earned income less the loss carryforward, less self employment tax & qualified plans = adjusted gross income of negative $13,000. $21,000 of that is the loss carryforward. Next deduct standard deduction of $9350, giving a current year loss of $22,000. So I am at a loss of approximately $22,000 including the $21,000 loss carryforward before using the exemption deduction of $8100.
So my question is: Is it correct that my loss carryforward carries over in it's entirety to the next year since none of it was utilized this year? My taxable income is zero. I modify it for the NOL Carryforward and I'm still at a negative. So it appears I am not using any of the loss carryforward this year. Is this corrrect?