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Business & farm
It's cool. This stuff gets complicated.
First, do your tax return as if you didn't have an NOL. Just enter all of your business income and expenses. Then you'll go to the "Other Tax Situations" section and click start next to Net Operating Loss and enter the NOL from 2021 there.
That will reduce your income to zero but keep in mind that it will not reduce your tax bill to zero. An NOL can only be used to reduce your income, it has no effect on self-employment taxes. If you had a profit in 2022 you will still owe self-employment tax on that profit even if your net income on the return shows as zero.
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‎April 17, 2023
8:43 AM