Use the "Federal Carryover Worksheet" to enter last year's NOL which will automatically enter it on Schedule 1, Line 8; without an "Override". Sch 1, Line 8- Use the "explanation button to explain the math of the NOL carryover. It takes you to "Other Income Statement"- then use the "explain" button to explain your math and reasoning. If you didn't have shareholder basis because you did not as shareholder loan your S-Corp cash, then you must have lived off your savings or, like me, my S-Corp took a loan which does NOT add to your Shareholder basis. Thus, you have S-Corp NOL and carryovers until the company makes enough profit (Earned interest counts towards shareholder basis, too) (Next time, 2%+ Shareholder should personably take the loan, then add it to the S-Corp so you'll have shareholder basis from the start to avoid this mess. I just learned the hard way.
I just used 1040-X for both years 2020 and 2021, to correct S-Corp NOL from 2020 to 2021, and then 2021 to 2022, with last NOL carryover to be used in 2023 1040. Finally, had enough S-Corp shareholder basis to start using NOL in 2022 and will use it up this year 2023.
Had an investor loan cash to my S-Corp so I didn't establish basis until I made enough cash to cover 2 years of losses. Started S-Corp in 2020.
The trick is to use SHD 1, Line 8, to add back as a positive number the amount of NOL going to carryover. This way you T-Tax won't add it to 1040 Line 8.
BTY- just go with the flow and let T-Tax populate the QBI form 8895 but make sure last year's return is accurate.
Hope this makes sense.
G
