Carryover losses

[billstaxreturn1]

If I had a business loss in 2018 ( line 12 of Schedule 1 ), can I carry over that loss to my 2019 tax return? If so, where would I input that figure ( loss amount ) on my 2019 tax return?  I run my business as a sole proprietor.

Thank You!

[tagteam]

You cannot simply look at your Schedule C loss since that will serve to reduce any other income you reported on your return.

As a result, you need to determine whether or not you have a net operating loss (NOL) and calculate the amount.

See https://www.irs.gov/instructions/i1045#idm139746110746688

[DawnC]

Did you have any other income reported on your 2018 tax return?   The business loss would have carried over to your Form 1040 and reduced other income reported on your tax return.  If you did actually have a net operating loss in 2018, it can be carried forwarded indefinitely until the loss is fully recovered, but they are limited to 80% of the taxable income in any one tax period. 

[billstaxreturn1]

I did not have any taxable income in 2018 ( line 10 on my 1040 ).  On my schedule 1 ( line 12 ), I show a 5400 loss.

Regards.

[ThomasM125 · Accepted solution]

You would first have to determine if you have a net operating loss (NOL.) If so, you can carry it forward to 2019.

You can read this article from the IRS to determine what your NOL is:

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

If you have one, you need to type in "NOL" in the "Search" menu option on the top of your TurboTax screen, where you will see a "jump to" link that you can click on to go to the section in TurboTax where you can enter the NOL from 2018.