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I am being told I wont be able to efile because it is claiming the Michigan NOL deduction, and I am not. Where do I fix this?

NOL deduction.  What is it?  I am not claiming it but Turbo Tax said I am. Where do I fix this?  Where is it coming from?
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JohnW152
Expert Alumni

I am being told I wont be able to efile because it is claiming the Michigan NOL deduction, and I am not. Where do I fix this?

A net operating loss (NOL) may occur if your deductions for a year are more than your income

for the year.  An NOL year is the year in which an NOL occurs.  You can use an NOL by deducting it from your income in another year or years. See IRS Publication 536 for more information. 

 

That said, it's not likely that you're claiming one.  To remove any Michigan net operating loss information in TurboTax Online: 

  1. Open TurboTax Online
  2. Select  Tax Home in the left pane
  3. On the  Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the State Taxes box, then select StartContinue, or Review/Edit
  4. In the left pane, select Prepare State
  5. Proceed through the screens until you come to the Status of your state returns screen
  6. Select  Continue or Edit to the right of Michigan.  If no state is shown, select + Add another state
  7. If you land on the Your 2023 Michigan taxes are ready for us to check screen, select Edit to the right of Income
    • Otherwise, proceed through the screens until you come to the Here's the income that Michigan handles differently screen
  8. On the  Here's the income that Michigan handles differently screen, you should see Michigan Net Operating Loss near the top.  Select Edit to the right
    • If you don't see Michigan Net Operating Loss near the top, scroll down and select Revisit to the right of Michigan Net Operating Loss in the Business section
  9. On the  Net Operating Loss Attributed to Michigan screen, delete the amount entered in the box, then select Continue

This will delete any Michigan NOL information.

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