Why do I have a Net Operating Loss form on my state taxes when all I have is a W-2?

[Anonymous_]

Please post more details, including the state.

[MaryK4]

In general, you will have a personal net operating loss when there are more deductions than gross income.  Please check your state tax return for the adjusted gross income.  

[Anonymous_]

A net operating loss is the result of a loss from a trade or business; there are no "personal net operating losses".

[MaryK4]

According to the IRS:

To have an NOL, your loss must generally be caused by deductions from your:

• Trade or business,
• Work as an employee (although not deductible for most taxpayers for 2018 through 2025),
• Casualty and theft losses resulting from a federally declared disaster,
• Moving expenses (although not deductible for most taxpayers for 2018 through 2025), or
• Rental property.

A loss from operating a business is the most common reason for an NOL. 

See Publication 536.  

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please respond back with the Token Number that was generated

@jaylin0603 

[Anonymous_]

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@MaryK4 wrote:

@jaylon0603

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Right, but one of those deductions would be from the sale of rental property as losses are typically passive.

Regardless, if you want to page (aka tag) @jaylin0603 then the username needs to appear underlined and in blue lettering as shown in this sentence.