I am working on my California state business taxes using the 2022 version of TurboTax desktop. My fiscal year started in 2022 and ended in 2023, so I am using the 2022 version of the software. I have a NOL (net operating loss) from 2017 and I have not yet used the full amount. My state taxes show an income for the 2022 tax year, so part of this NOL carryover is being applied to my 2022 taxes. When going through the state review, TurboTax is showing the prompt below titled 'Expired Net Operating Loss' and states to remove any prior year that is expired. However, I don't believe that any of the years are expired given the tax laws for NOL carryover. Is this simply a warning in TurboTax or a glitch or is my 2017 NOL actually expired? I did not see this issue with my 2021 taxes using the TurboTax desktop software and the same year NOL. I know the tax laws have changed for NOL in recent years, but I still think the 2017 NOL is valid. Thank you!
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I have same problem with Turbotax 2023 too.
Anyone know the solution?
This is the system being careful. The carryforward expires after 20 years (look out 2037) but the system doesn't look back that far. It's carrying things forward year by year. So you should expect to see that warning every year from now on until you use it up.
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