Form 1120 Line 29a net operating loss worksheet

[jnaleway]

Hi.  How do I fill out this form.? I have 1638 remaining in NOL carryover from 2024 and want to use 362 of that for 2025.  But I get an error when I put 362 in column B. Thanks. 

[ThomasM125]

You cannot choose to apply a smaller amount of the loss carryover in the current year. The amount applicable to the current year is based in part on your taxable income and the program will make that calculation. If the loss results in a taxable net income greater than 80% of the taxable income before the deduction, you must use the entire deduction in the current year.

[Edited 4/8/26 at 1:58 PM PST]

@jnaleway 

[jnaleway]

This is obviously incorrect!  What gives?? 

[ThomasM125]

What I mean is you don't adjust the loss in the Net Operating loss Worksheet. Column B on the bottom of the worksheet "Deduction allowed in Current Year" is based on your taxable income in line 28 of Form 1120. That number is populated by the program to result in no more than 80% of your income being absorbed by the loss carryover.