Business & farm

Upon review, Form 7203 is not required in your case and is not the form used to report the loss carryover.  

Per the IRS:

Form 7203 is filed by S corporation shareholders who: 

• Are claiming a deduction for their share of an aggregate loss from an S corporation (including an aggregate loss not allowed last year because of basis limitations),

 • Received a non-dividend distribution from an S corporation, 

• Disposed of stock in an S corporation (whether or not gain is recognized), or 

• Received a loan repayment from an S corporation. 

Since the loss is a carryover and the current year net will still be a profit, you do not need Form 7203.  You do need to mark that you have "at-risk carryovers from 2021" to correctly take the deduction in 2022. 

To do this in TurboTax Premium you can follow these steps: 

1. Sign in to your TurboTax
2. Open or continue  your return
   • Choose a section from the TurboTax menu and select Pick up where you left off
3. Using the search bar, type K-1 and select the Jump to link from the search results
   • Note: If the Jump to link doesn’t work, select the Federal tab, then under S-corps, Partnerships, and Trusts, select Wages & Income
   • Select Revisit or Start next to Schedule K-1
4. Answer Yes to Do you want to review Schedules K-1 or Q? and follow the prompts until you get to the Other Situations screen
5. In addition to the boxes you have already marked, also mark I have at-risk losses carrying over from 2021.
6. Then enter your NOL from the basis limitation in 2021, your AMT loss (same as the NOL), and your QBI loss carryover from your 2021 returns.

@erinpatrickhourani