NOL Mechanics

[vmarwah]

Let me start by saying I know TurboTax does not calculate NOL and that I am supposed to use Publication 536 for the worksheet.

This is the scenario and my questions:

For tax year 2022 I have significant NOL (non farming businesses). I know I can not carry it back so it has to be carried forward. After finishing my personal taxes Turbotax said that I might have NOL for the year and to confirm if I had NOL - what was this for?

My question is - after using the worksheet in Pub 536 to calculate NOL am I supposed to file any form with IRS telling them - "hey, I have NOL for current tax year that I will be carrying forward and using in the future"? Turbotax doesnt calculate NOL - but do they fill out any forms after I calculate and keep track of any carry forwards?

Next year - I know I use NOL on Schedule 1, but I am supposed to attach a statement showing the calculations. Will TurboTax (desktop) let me attach a statement with my return next year?

Thank you

[Mike9241]

My question is - after using the worksheet in Pub 536 to calculate NOL am I supposed to file any form with IRS telling them - "hey, I have NOL for current tax year that I will be carrying forward and using in the future"?

No

Turbotax doesnt calculate NOL - but do they fill out any forms after I calculate and keep track of any carry forwards?

Next year - I know I use NOL on Schedule 1, but I am supposed to attach a statement showing the calculations. Will TurboTax (desktop) let me attach a statement with my return next year?

No -just enter the NOL and an explanation.  if the IRS wants to see the calculation it will ask for it.

now Turbotax may change where you enter the nol when it comes to the 2023 return, currently, it's under business deductions and credits

[AmeliesUncle]

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@vmarwah wrote:

After finishing my personal taxes Turbotax said that I might have NOL for the year and to confirm if I had NOL - what was this for?

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If I had to guess, that is just an outdated question from when NOLs used to be able to be carried back.  TurboTax tends to be negligent with some of the questions in the program, so I think it is just an outdated, irrevelent question.

[vmarwah]

@mike7 @AmeliesUncle 

Thank you!

So essentially you have until next year tax filing deadline (2023 due date) to calculate your NOL for 2022.