Turbotax won't help with the calculations. In fact Turbotax hasn't been updated with the cares act info you (4/1/2021). They still reference the obsolete TCJA.
The IRS has info on how to calculate your NOL here: https://www.irs.gov/publications/p536
Ultimately everyone recommends going to a tax accountant. If you can find one that wants to take on a new client and deal with NOL (I've tried 3 so far with zero luck).
You can enter a net operating loss in TurboTax, however, as mentioned above TurboTax does not support the calculation. In the federal section, search for NOL and use the link to be taken to where it is entered.
The CARES Act made three changes to NOLs that improves cash flow for struggling businesses:
- Provided a five-year carryback for losses earned in 2018, 2019, or 2020, which allows firms to modify tax returns up to five years prior to offset taxable income from those tax years.
- Suspended the NOL limit of 80 percent of taxable income. This means that firms may deduct their NOLs to eliminate all of their taxable income in a given year, instead of having to carry forward any NOL beyond 80 percent of taxable income.
- Pass-through business owners may use NOLs to offset their non-business income above the previous limit of $250,000 (single) or $500,000 (married filing jointly) for 2018, 2019, and 2020.
If your deductions for the year are more than your income for the year, you may have a net operating loss (NOL). Publication 536 covers NOLs for individuals, estates, and trusts:
- How to figure an NOL.
- When to use an NOL.
- How to claim an NOL deduction.
- How to figure an NOL carryover.
Specifics to the state of Maryland
Maryland conforms to this provision as it applies to tax years 2018 and 2019. NOLs incurred in tax years 2018 and 2019 may be carried back for up to five years. If a taxpayer incurred a federal NOL in the tax year 2018 or 2019, and they amend prior year federal returns to carry the NOL back, they may also amend their Maryland returns for each year a federal amended return was filed.
Please note, the IRS has implemented procedures for quick refunds due to the carryback of NOLs, but Maryland has no such procedures; taxpayers must file amended returns to claim the state refund. For more details on this, please click on this link. #3
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@DawnC Careful. Once you say you've had an NOL in Turbotax 2020 it generates an election page waiving your carryback rights the CARES act gave us. It references TCJA and doesn't tell you that it's done this either. Intuit needs to fix this imho.