amend Net Operation Loss for the current year

Forum|Forum|3 years ago
August 8, 2022
1 reply
1 view

I just realized that TurboTax doesn't calculate NOL (net operation loss). Since I already filed, I need to amend my tax filing so the loss could be carried forward to the next year. I opened TurboTax new file, clicked on the "amend" button, imported the current year tax file. I then searched "net operation loss". I jumped to that page. What I found was that TurboTax asked me to enter the last year's NOL. This was not what I wanted. What I wanted was to enter the current year's NOL, not last year's.

How do I amend the file so to enter the current year NOL? Thanks.

Best answer by Anonymous_

You need to calculate your NOL and complete Form 1045 (Schedule B) for the NOL carryover.

See https://www.irs.gov/instructions/i1045#en_US_2021_publink1000306715

Note that TurboTax does not support Form 1045.

Anonymous_Answer

Level 15

You need to calculate your NOL and complete Form 1045 (Schedule B) for the NOL carryover.

See https://www.irs.gov/instructions/i1045#en_US_2021_publink1000306715

Note that TurboTax does not support Form 1045.

SoePaingAuthor

Level 3

Thanks for the reply. If Turbotax doesn't support Form 1045, how exactly do I file NOL? I know I can download the form, fill it out, then what? How do I let IRS know I'm amending my tax file?

Oh! Forget about what I wrote above. I just figured out Form 1045 is for tentative refund. I have no refund because my tax liability is 0. I need to carry forward my NOL for future use.

SoePaingAuthor

Level 3

You do not include 1045 or its schedule A (where the NOL is calculated) in the tax return for the year the net operating loss occurred. so there is no need to amend your 2021 return. you do your own calculation using schedule A (be careful. read the schedule A instructions carefully so you know what's business income and what's not and what to enter on other lines). in 2022 when doing your return there should be a question about prior year NOL. no form or schedule is needed to support this amount. if the IRS wants the details they'll notify you.

https://www.irs.gov/pub/irs-pdf/i1045.pdf

Mike9241 wrote:

"you do your own calculation using schedule A..."

Thank you for the reply. Regarding Net Operation Loss (NOL) calculation, in Publication 536, there is a Worksheet 1 that IRS asks people to use to calculate NOL. I am puzzled as to which one to use. Do I use Schedule A, which is already done by TurboTax? Or do I use the Worksheet 1 in Publication 536, which seems to be the IRS's way of calculating NOL?