turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I had a NOL this year, this is the first year of my business. Im going through the motions here in TurboTax but I don't see where to report and carry forward the loss?

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
AmyC
Employee Tax Expert

I had a NOL this year, this is the first year of my business. Im going through the motions here in TurboTax but I don't see where to report and carry forward the loss?

Tax situations TurboTax does not handle includes NOL. Read IRS Publication 536 Net Operating Losses (NOLs) 

Excess business losses for noncorporate taxpayers are limited for tax years 2021 through 2028. Generally, any disallowed loss is treated as an NOL carryover to later years. Also, excess business losses are now computed without regard to any deduction allowed under IRC section 172 or 199A and without regard to any deductions, gross income, or gains attributable to any trade or business of performing services as an employee. You can’t deduct net losses in excess of a threshold amount in the current year.

 

Be sure you are entering preliminary expenses for amortization and following the rules for when to deduct what. See Small Business and Self-Employed Tax Center 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

I had a NOL this year, this is the first year of my business. Im going through the motions here in TurboTax but I don't see where to report and carry forward the loss?

I just want to clarify that there is a big difference between a business loss and an NOL.

 

In most cases, a business loss is allowed to be used and will offset other income on the tax return.

 

A NOL means the entire tax return has a cumulative net loss.  As was mentioned, TurboTax does not handle that.  You would MANUALLY calculate the NOL and MANUALLY enter it into next year's tax return.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question