NOL Carryforward worksheet or statement

[CP06]

I have NOL carryforward since 2013 that need to report in my 2019 return as a NOL carryforward worksheet or statement.  I did everything Turbo Tax walked me thru and when I sent the return to the IRS, it got rejected the first time on 2/17.  I am told that Turbo Tax fixed the problem already this AM 2/19.  I resent the return and got rejected again.  I know that problem is that I must prepared this NOL carryforward worksheet and attach to my return.  However, I don't know how to do this and I could not locate a form for it in Turbo Tax.  Could someone familiar with Turbo Tax help me out.  I got rejected 2 times from the IRS already.  This is my first time using Turbo Tax Premier.  

[MarilynG1]

Type 'nol' in the Search area, then click on 'Jump to nol'.

You should be able to enter your Net Operating Loss carryover amounts without issue (screenshot). 

Check your Federal Carryover Worksheet from your 2018 return for the amount. 

[CP06]

MarilynG1,

I am grateful for your assistance.  I did exactly what your screen shot showed.  However, this information is the total amount and this amount need to be linked to a 1040 worksheet called"NOL worksheet" whereas I need to show the Pre-2018 and Post-2018 NOL carryover information and AMT NOL carryover information by year.  There is no link to this worksheet so my 2019 carryforward information shows as zero in my 1040 return.  The error message I got from the IRS when it rejected my return is: "F1040-133 if an [other income type statement] present in the return, other income litcd has the value "NOL", then [NOL carry forward deduction statement must be attached to the corresponding "other Income type stmt".  It is this statement that I must prepare and attach to the return that I am looking to fill the information in.  Could you help me locating this statement.  I appreciate the assistance.  CP06.

[phil106]

This appears to be similar to my situation in that I had a NOL in 2018 hat left me with carryover for 2019.  The issue is that TurboTax does not calculate the NOL therefore the worksheet does not exist in TurboTax.  While you can enter the NOL into TurboTax as was answered you will have to fill out the worksheet (from IRS Pub 536) manually and to be able to attach it to your return you will have to file your return manually.  In addition because TurboTax does not handle the NOL it is not aware of the 80% rule that was part of the 2017 Tax Act (the maximum carryforward you can apply to your return is 80% of you income)

[CP06]

Phil106,

This is exactly what I need to move forward with this matter.  I am grateful for your assistance.  CP06.

[KarenM90]

To enter your 2018 NOL into TurboTax, type NOL in the search bar at the top right of your screen.  Then choose the "Jump To" Link.

It will take you to the screen below to enter that information

@5Wilgm

[kelvinchan]

I have the same experience.  TurboTax does not appear to calculate NOL; it allows for manual input.  It also does not calculate the 80% of income limitation.  Will TurboTax fix this and when?

[AmeliesUncle]

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@kelvinchan wrote:

I have the same experience.  TurboTax does not appear to calculate NOL; it allows for manual input.  It also does not calculate the 80% of income limitation.  Will TurboTax fix this and when?

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Correct, TurboTax does not calculate NOLs.  You need to manually do that, manually enter it, manually create and attach the computation to the tax return and mail it.  Or go to a tax professional.

The recent changes in law eliminated the 80% limit for 2018, 2019 and 2020 tax returns.  It also created a 5 year carryback for NOLs created in 2018, 2019 and 2020.  So if the NOL was created in 2018, you would either need to carry it back to 2013, or file an election to "waive the carryback" of the 2018 NOL.

Due to the severe limitations of TurboTax in connection with NOLs, I recommend a tax professional.

[kelvinchan]

Thank you for your advice.  

[pctechy]

TurboTax does have a Federal Carryover worksheet which has an NOL carryover and AMT NOL carryover field (line 14). However, mine is blank and when I spoke to someone from turbotax they said because my at risk amount is greater than my loss on my LLC partnership I can't carry over the loss. It has to be taken in 1 year even though it's way larger than my income, my AGI, even when I fill out worksheet 1 and 3 from Pub 536 it looks like I should have over a $22,000 NOL carryover.  This is all very confusing.  Can anyone help with this??

[johnson101219]

Hello,

Adding to the discussion the TurboTax software does not represent the latest updates to the treatment of business losses. Please see the CARES Act of 2020 for more details. Under the new act we can recognize 100% of our business loss against business income and personal income.  

Thank you,

John Johnson

[mikeasmel]

I have a simple situation...well sort of....

I have to file the 2020 tax return for my elderly parents who wouldn't otherwise have to file a tax return except that the IRS made a mistake and didn't issue the second rebate check to just one of my parents for $600.  However, I cannot use the free IRS Tax submission program because it doesn't allow for entering in a large NOL non operating loss carryforward. So, which is the least expensive version of TurboTax that I can use in order to file a tax return that will allow me to enter a NOL, or should i do a free version, print it out and add a schedule? help

[DawnC]

You could deduct business losses against personal income before the CARES act.   Can you provide more details about what you are referencing?   @johnson101219  

@mikeasmel  Are you trying to file 2 returns (one for you and one for your parents) or something else?   You can file multiple returns with the desktop software and even the Basic version includes all forms.   You won't get step by step instruction, but TurboTax does not calculate NOLs anyway.   You can calculate the amount and manually enter it in any desktop version.  

If you qualify to use IRS FreeFile - there is no fee to file those returns.  

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.

Frequently asked questions about carrybacks of NOLs for taxpayers who have had Section 965 inclusion...

Temporary Procedures To Fax Certain Forms 1045 Due to COVID-19 Fax Form 1045 To Claim Quick Refunds ...

[mikeasmel]

I just need to file one return in order for them to get their Rebate Recovery Credit of $600 that was erroneously not sent to him but correctly was sent to her.   If it weren't for the NOL, I could use the free IRS Turbo Tax version as my parents have a simple return other than the NOL. Oh, and they have some stock transactions that are minimal. So, the question is how which version of TurboTax to use, so that I can file the return and get the Rebate Recovery Credit but also post the NOL from prior years as one value, so that we don't lose it if we ever need it going forward (unlikely)?

[DaveF1006]

You will need to upgrade to Turbo Tax Premier or higher to report your NOL and stock transactions. You will also be able to claim the Rebate Recovery Credit also in this version.