How do I enter in 2020 net operating loss for my business?

[mchu519]

I found a page for NOL by searching, but when I got there it seems to be only for 2019 carryover.  I have a net operating loss $5259 for 2020 in my Sole Proprietary LLC business.  The TurboTax software doesn't seem to calculate this for you when I put in my business expenses.  It just shows my net income is 0.

[tagteam]

You have to calculate an NOL manually (link below); TurboTax does not calculate NOLs.

https://www.irs.gov/publications/p536#en_US_2020_publink1000177328

If you actually have an NOL for 2020, then you have to carry back the entire amount of the NOL to five years before the NOL year (2020 in this instance) and then carry any remaining NOL forward.

See https://www.irs.gov/publications/p536#en_US_2020_publink1000177354

Note that you can also waive the carryback period.

[mchu519]

It sounds like I won't be able to eFile with TurboTax and I would have to calculate how much tax I still owed or get back.  Is that correct?

[tagteam]

You can most likely e-file your 2020 return, but if you carry back the NOL, you will have to print and mail that return.

[mchu519]

I don't have to do any carry backs.  I only have NOL in 2020.  Any idea where can I input that detail in TurboTax?

[tagteam]

If 2020 is your NOL year (i.e., the year you had an NOL), then you can either carry that NOL back or waive the carryback period and carry it forward to 2021. There really are no other options.