topic Re: Net Operating Loss for 2020 in Self employed

Net Operating Loss for 2020

mstevens67 — Tue, 15 Jun 2021 20:08:55 GMT

How do I carryback to 2017, 2018 and or 2019 which I still owe taxes on? I'm a schedule C filer and use TurboTax Home and Business. Was planning on filing 2020 today. Mark

Re: Net Operating Loss for 2020

Anonymous_ — Tue, 15 Jun 2021 21:10:49 GMT

Essentially, you have two choices:

1) Carry back the entire amount of the NOL from 2020 to 5 years before the NOL year (2020); or

2) Waive the carryback period and carry the NOL forward indefinitely until it is fully absorbed.

See https://www.irs.gov/publications/p536#en_US_2020_publink1000177354

Regardless, you cannot start the NOL carry back in the 2017 tax year (if you choose to carry back the NOL).

Re: Net Operating Loss for 2020

mstevens67 — Tue, 15 Jun 2021 22:16:57 GMT

Thanks so much, I really appreciate that...I started my business in 2015, so I would carry it back to 2015, but end up using all of it probably on my 2017 return as I owe $1,800 on that year still.

How do I do that? Can I do it myself? Do I do something special with my 2020 taxes? Do I have to amend past years returns?

Re: Net Operating Loss for 2020

Anonymous_ — Tue, 15 Jun 2021 22:38:02 GMT

You should probably seek professional guidance for this process as it is not exactly simplistic.

There is an example and additional information at the link below.

https://www.irs.gov/publications/p536#en_US_2020_publink1000177383

Re: Net Operating Loss for 2020

mstevens67 — Tue, 15 Jun 2021 22:45:47 GMT

Can I attach form 1045 to TurboTax and file it electronically with my 2020 TurboTax filing? Or do I need to print and mail it all together?

Re: Net Operating Loss for 2020

Anonymous_ — Tue, 15 Jun 2021 23:03:39 GMT

TurboTax does not support the calculation of an NOL nor does any edition of the program include Form 1045.

See https://digitalasset.intuit.com/DOCUMENT/A6QrdFCgW/010421-2020-unsupported-calcs-L1FQfTTgn.pdf

As a result, you would have to prepare Form 1045 manually, combine it with your TurboTax return, and then print and mail them together.

Re: Net Operating Loss for 2020

mstevens67 — Tue, 15 Jun 2021 23:13:01 GMT

That's what I was thinking it seems complicated.

I just filed an extension.

Appreciate all your help!!!

Mark