topic NOL carryforward in Business & farm

NOL carryforward

JPSUN — Mon, 09 Mar 2026 05:23:21 GMT

I am filing tax year 2021 now with TT home and business. I have a NOL of 79,000 from 2019/2020. I know that carrying it forward continues for several tax years until it is all used up so my question is do I put the total 79,000 as my NOL or only the amount I am using this year?

Re: NOL carryforward

Anonymous_ — Mon, 21 Feb 2022 17:30:12 GMT

Enter your NOL in the Less Common Business Situations section (click Start to the right of Net Operating Loss/QBI Carryforward Loss).

Re: NOL carryforward

JPSUN — Mon, 21 Feb 2022 17:38:58 GMT

Yes, thank you, I know where to enter it. I am asking do I enter the total 79,000 as that is what has been carried forward from the two previous years or can I enter only the amount I am going to use this year. I cannot seem to find any information on this.

Re: NOL carryforward

Anonymous_ — Mon, 21 Feb 2022 18:03:52 GMT

Enter your total NOL ($79,000).

Re: NOL carryforward

JPSUN — Mon, 21 Feb 2022 18:40:33 GMT

Thank you. Do I do anything else? How does the unused portion get calculated to be carried forward after that? When I put the full amount in I don't see anything on the forms for a new balance. Also, its more than my income for the year so it says I have to file a paper return, never had that happen before.

Re: NOL carryforward

Anonymous_ — Mon, 21 Feb 2022 20:09:55 GMT

TurboTax will not calculate an NOL so you need to calculate that manually.

See https://www.irs.gov/publications/p536

Re: NOL carryforward

ErnieS0 — Mon, 21 Feb 2022 20:10:16 GMT

TurboTax does not support net operating loss calculations so you will have to keep track of your unused NOL and calculate the amount yourself each year and enter that amount in TurboTax.

For more information about NOLs see IRS Publication 536

Re: NOL carryforward

JPSUN — Mon, 21 Feb 2022 20:31:16 GMT

Why is it there on my previous years taxes carrying over then? I have used TT for over a decade and the NOL is there on the last few years and it shows what years its from.

Re: NOL carryforward

JPSUN — Mon, 21 Feb 2022 20:47:08 GMT

Okay so I will put the 79,000 which is the total NOL from the previous years carried forward since I had never used it. I don't have to though right? I can just keep carrying it forward?

But if I do use it, if at the end it says my income is negative 34,000 now is that what I would put next year as my NOL? I tried to read the publication but I need a for dummies version..

Re: NOL carryforward

DianeW777 — Mon, 21 Feb 2022 22:14:30 GMT

When a net operating loss (NOL) is initially entered TurboTax will incorporate that into the current tax return once you have completed the NOL worksheet(s). It will also know if any of the NOL was used on your tax return. What TurboTax will not do is to calculate an NOL.

IRS Publication 536

When this initially occurred, then the NOL worksheet was required to be prepared and depending on the year, you had an option to carryforward or were required to carry it back.

Here's how to enter a 2020 NOL carryforward in TurboTax:

Do a Search (upper right) and enter "nol"
Click on the "Jump to....." link
Enter your NOL on the screen that appears

Note. As our Tax Champ @Anonymous_ indicated through a test, the NOL must still be calculated and entered into TurboTax each year. Use the IRS publication to access the worksheets.

When To Use an NOL

Generally, if you have an NOL for a tax year ending in 2020, you may carry back the entire amount of the NOL to 5 years before the NOL year (carryback period), and carry forward any remaining NOL indefinitely (the carryforward period).

Waiving the Carryback Period

You can choose not to carry back your NOL. If you make this choice, then you can carry your NOL forward indefinitely until it is fully absorbed.

To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. This statement must show that you are choosing to waive the carryback period under section 172(b).

If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months of the due date of the return (excluding extensions). Attach a statement to your amended return, and write "Filed pursuant to section 301.9100-2" at the top of the statement.

Once you choose to waive the carryback period, it is generally irrevocable. If you choose to waive the carryback period for more than one NOL, you must make a separate choice and attach a separate statement for each NOL year.

Note 2: In 2017, TCJA changed the NOL rules by:

limiting NOL deductions to 80% of taxable income,
disallowing NOL carrybacks, and
lifting the 20-year limit on NOL carryovers.

In 2020, the CARES Act temporarily – and retroactively – changed the NOL rules again.

More information can be found in the IRS publication linked above.

@JPSUN

{Edited: 02/21/2022 | 2:13p PST]

Re: NOL carryforward

Anonymous_ — Mon, 21 Feb 2022 21:26:35 GMT

@DianeW777 wrote:
Note, if you did your taxes last year with TurboTax and generated an NOL carryover, then in many cases, TurboTax will carryover the NOL automatically to the next year.

@DianeW777

I have tried the NOL carryover from a 2020 return to a 2021 return in a test 1040 with Home & Business.

Although the AGI shows up as negative in the Carryover Worksheet, the NOL does not. Thus, I believe the NOL still needs to be calculated and entered into the program as an NOL Carryover.

Re: NOL carryforward

JPSUN — Mon, 21 Feb 2022 21:40:02 GMT

well that's fun because I did not attach a statement any of the years the loss was generated, I just filed my taxes through TT like I have every year for probably 20 years now.

Re: NOL carryforward

JPSUN — Mon, 21 Feb 2022 21:49:44 GMT

I used home and business for 2020 and imported into 2021 home and business and on the schedule 1 the NOL is there and on the other forms that calculated and they do for sure show up as being negative.. It actually shows 2019 negative and 2020 negative and says which amount is from which year.

Re: NOL carryforward

DJStar — Tue, 22 Mar 2022 18:03:47 GMT

Thank you so much for this info on where to put it! Would you also be willing to let me know how to figure it? I've used Premier Desktop for years. This is my first year using it on a Mac. Is it in the suggestion box for TT to figure this for us? Or at least like some folks had mentioned to bring it up somewhere? That did not happen for me and I've been all the way through the Smart Check.

Re: NOL carryforward

DJStar — Tue, 22 Mar 2022 18:22:02 GMT

Well, I decided to do recon while I was waiting for your reply. When I typed in the search bar "Less common business situations" this is what came up:

Why is my employer not withholding state taxes while I work from home?

by TurboTax

•25•Updated 1 month ago

With more people working from home over the past year, this tax season has brought on some new changes and special requirements. If you notice that your W-2 ...

My child wants to file their own taxes. What does that mean for me?

by TurboTax

•17•Updated December 23, 2021

Your child must submit their own tax return if they earn a certain amount of income during the year. Even if they're not required to file, ...

Why is that?

When I typed in Net Operating Loss Carry forward and got those same two above! But I found below that something from 2017 that says: "If you have a Net Operating Loss there are some computations that have to be made each year, and that amount has to be manually carried forward." So I'm on the trail but don't know which way to go.

Thanks for your help earlier! I also appreciated learning about the "Like" thing. I'll do that. But how do I do the "Best Answer" thing?

Re: NOL carryforward

DJStar — Tue, 22 Mar 2022 18:32:05 GMT

I found the "How to Figure my NOL" in the IRS Publication so no need on that part. But for other folks, here it is:

Worksheet 1. Figuring Your NOL Keep for Your Records 1. For individuals, subtract your standard deduction or itemized deductions from your AGI and enter it here. For estates and trusts, enter taxable income increased by the total of the charitable deduction, income distribution deduction, and exemption amount. See instructions ....................... 1. 2. Nonbusiness capital losses before limitation. Enter as a positive number ....................................................... 2. 3. Nonbusiness capital gains (without regard to any section 1202 exclusion) ..................................................... 3. 4. If line 2 is more than line 3, enter the difference. Otherwise, enter -0- ..... 4. 5. If line 3 is more than line 2, enter the difference. Otherwise, enter -0- ......................... 5. 6. Nonbusiness deductions (see Nonbusiness deductions under How To Figure an NOL, later). Enter as a positive number ..................... 6. 7. Nonbusiness income other than capital gains (see Nonbusiness income under How To Figure an NOL, later) ................................ 7. 8. Add lines 5 and 7 ............................................... 8. 9. If line 6 is more than line 8, enter the difference. Otherwise, enter -0- ......................... 9. 10. If line 8 is more than line 6, enter the difference. Otherwise, enter -0-. But don’t enter more than line 5 ..................................... 10. 11. Business capital losses before limitation. Enter as a positive number ....................................................... 11. 12. Business capital gains (without regard to any section 1202 exclusion) ...................... 12. 13. Add lines 10 and 12 ............................................. 13. 14. Subtract line 13 from line 11. If zero or less, enter -0- .................. 14. 15. Add lines 4 and 14 .............................................. 15. 16. Enter the loss, if any, from line 16 of your 2019 Schedule D (Form 1040 or 1040-SR). Estates and trusts, enter the loss, if any, from line 19, column (3), of Schedule D (Form 1041). Enter as a positive number. If you don’t have a loss on that line (and don’t have a section 1202 exclusion), skip lines 16 through 21 and enter on line 22 the amount from line 15 ........ 16. 17. Section 1202 exclusion. Enter as a positive number ........................................ 17. 18. Subtract line 17 from line 16. If zero or less, enter -0- .................. 18. 19. Enter the loss, if any, from line 21 of your 2019 Schedule D (Form 1040 or 1040-SR). Estates and trusts, enter the loss, if any, from line 20 of Schedule D (Form 1041). Enter as a positive number. ................. 19. 20. If line 18 is more than line 19, enter the difference. Otherwise, enter -0- ....................................................... 20. 21. If line 19 is more than line 18, enter the difference. Otherwise, enter -0- ........................ 21. 22. Subtract line 20 from line 15. If zero or less, enter -0- ....................................... 22. 23. Domestic production activities deduction from your 2019 tax return ........................... 23. 24. NOL deduction for losses from other years. Enter as a positive number ........................ 24. 25. NOL. Combine lines 1, 9, 17, and 21 through 24. If the result is less than zero, enter it here. If the result is zero or more, you don’t have an NOL .................................... 25. Publication 536 (2019) Page 3 Nonbusiness capital losses (

Re: NOL carryforward

docmom — Wed, 23 Mar 2022 14:19:18 GMT

Sooooooooooooooooooooooo the 2021 version of Turbotax Home and Business does not automatically calculate the NOL?

Re: NOL carryforward

Anonymous_ — Wed, 23 Mar 2022 14:20:50 GMT

@docmom wrote:

Sooooooooooooooooooooooo the 2021 version of Turbotax Home and Business does not automatically calculate the NOL?

No, it does not.

Re: NOL carryforward

DJStar — Thu, 24 Mar 2022 02:25:21 GMT

I spent 4 hours on the phone with TT and did not find anyone who could help me, even the 6 year expert. I asked if he could find anyone at TT who could help me with that and call me and he said no. The best he could offer was to upgrade to having a TT expert do my taxes for $389, even though I have everything done except for this one entry. The form I put in earlier was too vague for me as to what years figures they were wanting. I recall from past years I just took the previous years NOL and took away any current positives but still wanted someone to verify it because I wasn't sure if any "tax credits" should go against it so I finally asked a CPA friend.

Re: NOL carryforward

AraV — Thu, 02 Feb 2023 17:06:28 GMT

Hi. I need help finding where is the tab to enter NOL Carryforward. Are you able to blow a hind for me?