Net Operating Loss Carryforward by Turbo Tax

[cupidchan]

I noticed that there is a line for Net Operating Loss Carryforward. Since I used Turbox for my tax return for many years, I am wondering if TurboTax can pull my previous record and calculate this number for me automatically.. If this is not possible, how can I obtain this number manually?

[tagteam]

TurboTax does not support the calculation of an NOL.

You can use the worksheet available at the IRS web site (link below) to figure your NOL.

https://www.irs.gov/publications/p536#en_US_2019_publink1000177330

[cupidchan]

Thanks @tagteam do you know is there any way to request this feature? Since TurboTax got all of my previous years' return, it should be able to figure that out for me. 

[tagteam]

The development team makes the ultimate decisions as to which features/enhancements are added based upon the perceived need.

Requests typically are not taken into consideration unless the demand is overwhelming.

[George in SC]

I don't think the answer addresses the question. The question was regarding tracking the carryforward amount for an NOL, not regarding the calculation of the NOL. Does TurboTax track and apply excess NOL to future years? If so, how can a user see how much of an NOL TurboTax applied in a current year and how much is carried forward to future years?

[PatriciaV]

If you used TurboTax last year, any net operating loss available to carry forward to the current tax year is shown on "Carryover Wks" Line 14a. The lefthand column is for last year, the righthand column shows the current year carryover. This is a TurboTax worksheet, not an IRS form.

You can print/preview this worksheet by choosing all forms and worksheets in the print options.

@George in SC

[tagteam]

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@George in SC wrote:

.........Does TurboTax track and apply excess NOL to future years?

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No. You need to calculate the NOL manually and then enter the figure into TurboTax manually.

TurboTax does not track NOLs nor automatically "apply excess NOL to future years".

[George in SC]

PatriciaV,

Thank you for your reply. I was able to easily find the Carryover Wks" Line 14a that you referenced.  I am in the process of completing my 2023 return. There is nothing in Line 14a or b. I expected that they should be something in the 2023 column 14a. 

Unless I am totally misunderstanding how my inherited NOL should be applied, it appears that TurboTax applied more of the NOL to this year's return than was necessary.  Shouldn't it only apply enough of the NOL to cause my adjusted gross income (1040 line 11) to be equal to my standard deduction (1040 line 12)? That would allow carryover of a portion of my NOL to next year.

As it is, TurboTax show no taxes due which I expected given the amount of the NOL. But no taxes would be due if only a portion of the NOL was applied, therefore I'd expect some carryover. Is that a correct expectation?

As this is an inherited NOL from the Schedule K-1 we received, this is new territory for me. 

Thanks for your help!

[RobertB4444]

Yes.  The NOL is figured using your income less the standard or itemized deduction on your return.  Any remaining amount should carry over into next year.  There is a worksheet from the IRS here.  

The software should carry your NOL forward but if it is not you can track it yourself and enter it on next year's return.  

@stoykogd 

[tagteam]

Unfortunately, in my experience on test returns, the software does not carry an NOL forward automatically; the NOL needs to be entered manually each tax year.

See https://digitalasset.intuit.com/DOCUMENT/A2ETBITdw/122122-2022-unsupported-calcs-L1FQfTTgn.pdf

Net Operating Loss: If after completing your tax return you have a negative amount on Form 1040, line 15, and you had a loss from a business activity such as those reported on Schedules C, E, F, or resulting from dispositions on Form 4797, or sustained a casualty loss, you may have a Net Operating Loss (NOL). The program does not calculate the amount of NOL to be carried back or forward to another year. To determine your NOL, if any, refer to Form 1045, Schedule A (not included with this program). You will probably also benefit by reviewing IRS Publication 536 for details about the NOL calculation.