Yes. What you are referring to is a Net Operating Loss (NOL). When an S Corporation has a loss, that loss is reported on the shareholders' personal tax return on Schedule E and that loss can be used to offset other income. If the loss is so large that there is a remaining amount after the offset of your other income, that creates an NOL which can be carried forward. Note that the NOL can only offset 80% of your income (determined without regard to the deduction) and any remaining amount would continue to be carried forward indefinitely.
On your tax return, list your NOL deduction as a negative figure on the "Other income" line of Schedule 1 of Form 1040.
For more information on Net Operating Losses, please see Publication 546.
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