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Level 2
posted Mar 16, 2022 2:55:13 PM

For Tax Year 2021: Net Operating Loss (NOL) Carryover

I am trying to determine where I would find the Net Operating Loss (NOL) amount from my Tax Year 2020 taxes and if this amount should be added to this year's Tax Year 2021 (using Turbo Tax Home & biz)  I'm confused about which NOL number to take from my 2020 tax year and place on the 2021 tax year screen in Turbo Tax.

 

Situation:

I'm on the screen with the title "2020 Net Operating Loss." it is asking if I had a "Net Operating Loss Carryover."

 

I looked at the Tax Year 2020 taxes on Form 8995 Line 2 and I see the amount for the "Total Qualified Business Income or Loss," which is a negative number.  However, on Schedule 1 Line 9 it shows where the negative Business Income Loss is combined with the Taxable Refunds, Credits, or Offsets of State and Local income taxes which gives a lower NOL amount.  

 

Question 1:  Which negative amount is the actual NOL carryover amount that I need to enter on the 2021 Tax Year form?  Is it the amount that is on Form 8995 Line 2 (which is the higher negative amount) or the amount on the Schedule 1 Line 9  (which is the lower negative amount?

 

Question 2:  If there is an "AMT Net Operating Loss Carryover" where would I find that on my 2020 Tax Year return?

 

Thank you for your help!

 

and it is asking for the Net Operating Loss Carryover amount.  I am looking at Tax Year form 2020 and see an amount of the NOL on Line 2 of Form 8995 

0 4 7011
4 Replies
Expert Alumni
Mar 16, 2022 3:34:24 PM

Unless you had a negative figure on line 11, adjusted gross income, on your 2020 tax return, you probably don't have a net operating loss carryover to 2021.

 

A net operating loss (NOL) is basically a net loss resulting from a loss from business activities minus income from non-business sources. It is not separately stated on your tax return, but must be calculated by you.

 

It is not listed on form 8995, as that is just for qualified business income and deduction, which is not associated with a NOL. A current year NOL is also not listed on schedule 1, although your prior year NOL would appear on line 8(a) of the form.

 

Here is a link on information about how to calculate a NOL:

 

NOL calculation

 

 

 

 

New Member
Mar 26, 2022 12:03:57 PM

For Home & Business Turbo Tax 2021 where do I enter my NOL carryover from 2020

Employee Tax Expert
Mar 26, 2022 12:29:29 PM

Use the following steps to enter your 2020 NOL Carryover:

 

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner) 
  • This opens a box where you can type in “NOL” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to NOL
  • Click on the blue “Jump to NOL” link and enter your information

@jtao2501

New Member
Mar 26, 2022 12:32:59 PM

thanks so much