Every tax year is different. Just because you never had it before, that does not mean it is not valid this year. This works for your benefit if it does apply to you.
Please see PUB 536 for more information.
If your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). An NOL year is the year in which an NOL occurs. You can use an NOL by deducting it from your income in another year or years.
What this publication covers.
This publication discusses NOLs for individuals, estates, and trusts. It covers:
How to figure an NOL,
When to use an NOL,
How to claim an NOL deduction,
How to figure an excess business loss, and
How to figure an NOL carryover.
To have an NOL, your loss must generally be caused by deductions from your:
Trade or business,
Work as an employee (although not deductible for most taxpayers for 2018 through 2025),
Casualty and theft losses resulting from a federally declared disaster,
Moving expenses (although not deductible for most taxpayers for 2018 through 2025), or
Rental property.
A loss from operating a business is the most common reason for an NOL.
Generally, the program will not calculate something that does not pertain to you. Why do you feel that the NOL does not apply to you
The basic formula for calculating net operating losses for an individual taxpayer is to subtract the total tax deductions for the year, including the standard deduction, from adjusted gross income.
Thank you for the reply. Which year AGI and Standard Deduction do I use for this calculation?
Also, I just don't recall seeing this calculation from previous years.
Every tax year is different. Just because you never had it before, that does not mean it is not valid this year. This works for your benefit if it does apply to you.
Please see PUB 536 for more information.
If your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). An NOL year is the year in which an NOL occurs. You can use an NOL by deducting it from your income in another year or years.
What this publication covers.
This publication discusses NOLs for individuals, estates, and trusts. It covers:
How to figure an NOL,
When to use an NOL,
How to claim an NOL deduction,
How to figure an excess business loss, and
How to figure an NOL carryover.
To have an NOL, your loss must generally be caused by deductions from your:
Trade or business,
Work as an employee (although not deductible for most taxpayers for 2018 through 2025),
Casualty and theft losses resulting from a federally declared disaster,
Moving expenses (although not deductible for most taxpayers for 2018 through 2025), or
Rental property.
A loss from operating a business is the most common reason for an NOL.
Coleen,
Thanks again for your time helping me.
Would proceeds last year (in July 2021 in a different State) from my brother's death/estate be a trigger for this?
I can't view the tax forms since I am using the online version of TT.
Sincerely,
Joel M.
No, that is income, not a loss. Do you not have any losses that look like they would create this?
I don't have anything like that. The only thing I see now is the Form 1041 Schedule K-1 info from my portion of the proceeds from my brother's estate. That input creates a negative number in the NOL
Try deleting the K-1 entry and then print out your return. Read it over so you are familiar with the income and deductions. Add the K-1 back, being very careful with your entries. Compare the returns before and after to see where this NOL is coming from.
Coleen,
Thank you very much for your insight and the time you took on my behalf.
I did essentially what you suggested and I now understand what that negative number represents. In the end, it was rather moot, and the Standard Deduction was the best path for me to take.
Again, thank you,
With sincere regards,
Joel