carry loss forward

[cdlvj130]

I noticed that I have -34K in the carry loss forward bucket.

Last year I paid $1900 in tax. Is this not applied automatically or do you have to do something.

Turbo Tax Desktop.

Thanks.

[DianeW777]

It depends on whether this is a capital loss carryover or if this is a net operating loss (NOL) carryover. 

1. A capital loss carryover is used against other capital gains each year with an overall limit of $3,000 loss allowed per year for each year there continues to be an overall loss.
2. A NOL is an overall income loss, in other words your taxable income for the year if a negative amount. A NOL cannot be carried back, only forward. A new Form has been created for use in determining the allowed loss. 
   • Individuals, estates, and trusts use Form 172 to figure the amount of the NOL that is available for carrying back or forward.

NOL carryback eliminated.

Generally, you can only carry NOLs arising in tax years after 2020 to a later year. An exception applies to certain farming losses, which may be carried back 2 years. See section 172(b) and Pub. 225, Farmer’s Tax Guide.

When a net operating loss (NOL) is initially entered into TurboTax Online or TurboTax Desktop it will be incorporate that into the current tax return once you have completed the NOL worksheet(s).  It will also know if any of the NOL was used on your tax return.  What TurboTax will not do is to calculate an NOL.

To enter the NOL into your tax return in the carryover year use the steps below:

1. Open your return > Search (upper right) > Type net operating loss > Click the Jump to... link
2. Continue to follow the screen prompts to enter your carryover NOL

@cdlvj130