If you are reporting a loss on your Schedule C in excess of your other active income, TurboTax will simply zero out your self-employment income. You will need to track yourself what carryover you will need to input into your 2023 returns. Remember, if your business has QBI and is now calculating a loss for 2022, this will create a loss carryover as well.
If your business has a loss, but you have other active income (like a W2 from another company) the loss will be deducted from that income as required in 2022. The QBI loss will not be offset by income until you have QBI again. So, say you have W2 income of $5,000 in 2022 and an NOL of $15,000 and a QBI loss of $15,000. Your NOL carryover will be $10,000 (15,000 - 5,000) and the QBI loss carryover will still be $15,000. If these are the only 2 items of income you are reporting on your 2022 taxes, your AGI will be $0.
@monica38
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