Mike didn't get back to me, so I answered the question myself

[BillieT]

Net Operating Losses are limited to 80% of the taxable income for the year it is taken. For example: If a business shows a net loss of $125300, the deduction for the following year with taxable income of 92614, would be 74091. I believe it can be entered on the business income section as a negative number, which would lower taxable income. If anyone disagrees, please reply to my post.

[KeshaH]

Correct, your net operating loss deduction is generally limited to 80% of taxable income since tax year 2021. Losses that were generated before 2018 are not limited, so if you have any losses from those years you can deduct them in full (up to 100% of your taxable income) before using any of the limited losses.

To enter your net operating loss in TurboTax, use the magnifying glass to search for net operating loss. Click on the first result: Jump to net operating loss. You will see a screen that says 2023 Net Operating Loss. Enter your deductible net operating loss in the first box, Net Operating Loss Carryover, as a positive amount. You will need to calculate this amount manually. On the next screen you will enter a brief explanation of how you calculated your net operating loss deduction.

[BillieT · Accepted solution]

Thanks KeshaH, that was helpful information. However, it did not get me where I wanted. I have $96,000 in business income for 2024. The business was started in 2023 and had $125300 in losses the first year. I wanted to carryover the loss against 2024 income. NOL was already populated with the loss but the software said I owed $28000 in federal taxes. I kept going through the business section, looking for something I missed. I discovered "Final Details", and clicked on "Special Situations". Then saw "at risk losses carrying over from 2023". It talked about carryovers on schedule C. Sure enough, I found the loss on 2023 schedule C. First tried QBI, that didn't work. Then moved the money over to the box marked Sch C. That did the trick. The carryover cancelled all my taxable income for zero Federal taxes. I have $36000 left in losses to use against 2025 income. Wow, what a relief!