How to I enter my 2019 NOL as a deduction for 2020 taxes? I am a sole proprietor and if I'm not mistaken, this loss should carry over.

[cob32187]

2019 taxes showed a net operating loss of about $3,400.  Am I able to deduct that amount from my 2020 taxes? 2020 will show a profit and I would like to get as many deductions as possible.

[Anonymous_ · Accepted solution]

In the upper right side of the screen, click the Search icon and enter "net operating loss" in the search box.

Click the Jump to net operating loss link. 

[Critter-3]

Did you just have a loss on the Sch C in 2019  or  a true NOL  on the 1040?  They are not the same thing.  And if you had an NOL did you elect to waive the carryback ?   

[cob32187]

There is no "jump to" link. It brings up a bunch of conversations that aren't relevant (talking about capital losses, etc) and a form to ammend a previous return.

[Critter-3]

While inside the software and working on your return, type nol carryforward in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to nol carryforward.  Select that link.

Here's more information on NOLs that may be helpful to you: IRS Pub 536 Net Operating Loss

[cob32187]

My 1040 shows a loss of $3,304 on line 7a.

[cob32187]

When I search, that link doesn't come up. Once again, it brings up irrelevant conversations and stuff about amending a return. I'm using the website on my computer if that makes a difference. 

[Anonymous_]

@cob32187 Follow the screenshots below. You must be "searching" in the wrong place.

[Anonymous_]

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@cob32187 wrote:

When I search, that link doesn't come up. Once again, it brings up irrelevant conversations and stuff about amending a return. I'm using the website on my computer if that makes a difference. 

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Also, do not search here on this board. Search from within the TurboTax program.

[AmeliesUncle]

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@cob32187 wrote:

My 1040 shows a loss of $3,304 on line 7a.

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That doesn't necessarily mean you have a NOL.  Line 8b (on your 2019 Form 1040) is more closely related to if you have a NOL or not.

[Critter-3]

Having a loss on the Sch C doesn't mean you have an NOL on the return that can be carried forward  ... look carefully at the entire 2019 return ... did you waive the NOL carryback ?   If you did there should be an NOL statement in with the return.  What is the amount on line 8b?  If that is a negative amount then you may have an NOL to calculate. 

The program doesn't support the NOL calculation ... you need to do it yourself.  

You can calculate your NOL on the Worksheets in Publication 536.

See https://www.irs.gov/publications/p536#en_US_2018_publink1000177330

[cob32187]

Thanks. I must have done something wrong before but I got it to work this time.

[cob32187]

How to I determine that? My 1040 shows -3,304 on line 7a, -2,942 on lines 7b and 8b.

[Anonymous_]

@cob32187 

In the post by @Critter-3, there is a link to Publication 536 and a direct link to the NOL calculation worksheet appears below. Basically, you need to make the calculation manually using the worksheet.

Publication 536 (2019), Net Operating Losses (NOLs) for Individuals, Estates, and Trusts | Internal ...

[cob32187]

Thank you all. Hopefully I get it figured out with the worksheet. A lot if this is completely new to me and I refuse to pay someone huge amounts of money to figure this stuff out for me when I can do it myself. 

One would think turbotax would be capable of doing this calculation. I'm not pleased with this aspect.