NOL with negative AGI

If I have a negative AGI of $8,000 due solely to business (self-employed) Loss, and the worksheet for NOL tells me to subtract my standard deduction from my AGI, do I subtract the $12,950 from the negative $8,000 and come to $20,950 credit?

I've already looked at pub 536

464

1 Best answer

Level 15

Jan 19, 2023 3:34:13 PM

Yes, but you add it back again.

Most itemized deductions (except for casualty and theft losses resulting from a federally declared disaster and state income tax on trade or business income),

Level 15

Jan 19, 2023 3:19:55 PM

No. See https://www.irs.gov/publications/p536#en_US_2022_publink1000177330

New Member

Jan 19, 2023 3:28:10 PM

I've looked there. It tells me to subtract my Standard Deduction from my AGI. My AGI is a negative....

New Member

Jan 19, 2023 3:30:48 PM

I think I got it - If I do as it said, then on line 9 put the positive amount of $12950...then at the end on line 24 when I add the negative $20950 to the positive $12950 I get the $8,000. Dang forms --most times I feel like I'm just wasting my time with them. lol

Level 15

Jan 19, 2023 3:34:13 PM

Yes, but you add it back again.

Most itemized deductions (except for casualty and theft losses resulting from a federally declared disaster and state income tax on trade or business income),

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NOL with negative AGI