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