NOL Not being applied.

[BaderMusic]

I have a profit for the year 2021. I have a NOL from previous years that exceeds the profit. Yet TurboTax says I owe a federal Tax. Why?

[Critter-3]

Which tax form are you trying to file ?    An 1120-S or 1065 ?

[BaderMusic]

1120-C

[Mike9241]

we can't see the return so review line 26a where the NOL should appear. line 27 should be 0 or negative if NOL exceeds current year profits. then review schedule J where the tax is computed

[Critter-3]

Did you really mean a 1120-C  and not an 1120  ?   If so the TT program doesn't handle an 1120-C.

If you meant an 1120 then switch to the FORMS mode and look at line 29a ... read that line instructions ... if you have no tax on the 2021 return then it should be a zero.     https://www.irs.gov/instructions/i1120#idm140228282128624

[BaderMusic]

Thanks everyone for the advise.  The information I was missing was " NOL deductions are limited to 80% of taxable income". TurboTax does not show this anywhere that I could find.