We have a business NOL loss during 2018 of $22,000, How does it reduce 2018 taxes? I don't see it on the Top 1040 page? Are there limits? Carry forwards? Where?

[peter155]

using downloaded Turbotax Premier 2018.  I have two schedule C's showing a total loss of some $22,000 but don't see where this reduces my taxable income anywhere?  Limits?  If carried forward or back, Turbotax isn't showing me this anywhere?

[DawnC0]

To determine if you have a Net Operating Loss (NOL), look at your 2018 Form 1040.  Look at line 7; if it is a negative number, you may have an NOL that can be carried forward.  Generally, any losses on Schedule C (included on line 6) are offset by other income (lines 1-6).  If you have 50K in wages, your business loss will reduce your taxable income (wages).  

The Tax Cuts and Jobs Act (TCJA), section 13302, eliminated the option for most taxpayers to carry back a net operating loss (NOL). 

The NOL deduction cannot exceed 80% of taxable income (determined without any NOL deduction) for losses arising in tax-year 2018 and after. For more information, see the Instructions for Form 1045.

 See this link to IRS Publication 536, Net Operating Losses (NOLs) for Individuals, Estates, and Trusts. The calculation is one that you will have to do on your own, using IRS Form 1045.   

To find the NOL section of TurboTax, type NOL in the search box in the upper right-hand corner of your screen. Then click "Jump To" to be directed to that section. See the screenshot below.