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New Member
posted Feb 21, 2022 1:14:19 PM

How do I specify in TT that my NOL carryforward was from 2017

Hello, 

 

2021 taxes will be my first time with TurboTax. In the past, I filed a paper return.

 

I have a NOL carryforward from 2017 that I would like to apply to my 2021 return and want to ensure that my return clearly calls out that the NOL was from 2017. This is so I can use the offset at full 100% given that the IRS modified NOL carryforward rules for returns from 2018 onward.  When I did a paper return, I always attached a letter showing the 2017 loss and how it was applied in subsequent years.

 

Any thoughts on how this can be done in TT?

 

Thank you

 

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1 Replies
Expert Alumni
Feb 21, 2022 1:36:10 PM

When you are signed into TurboTax you can enter your 2017 carryover and then use the explanation box to clearly state it is from 2017.  TurboTax knows the required limits.

 

Keep the letter in your files as an ongoing record keeping document, you do not need to send it to the IRS.  They want it only upon request and most likely are not really looking at it.

  • Most taxpayers no longer have the option to carryback a net operating loss (NOL). For most taxpayers, NOLs arising in tax years ending after 2020 can only be carried forward. The 2-year carryback rule in effect before 2018, generally, does not apply to NOLs arising in tax years ending after December 31, 2017. The CARES Act provided for a special 5-year carryback for taxable years beginning in 2018, 2019 and 2020. Exceptions apply to certain farming losses and NOLs of insurance companies other than a life insurance company. Also, for losses arising in taxable years beginning after Dec. 31, 2020, the net operating loss deduction is limited to 80% of the excess (if any) of taxable  income (determined without regard to the deduction, QBID, and Section 250 deduction over the total NOLD from NOLs arising in taxable years beginning before January 1, 2018.

Here's how to enter a 2017NOL carryforward in TurboTax:

  1. Do a Search (upper right) and enter "nol
  2. Click on the "Jump to....." link
  3. Enter your NOL on the screen that appears