NOL carryover vs QBI loss carryover

[eccentric86]

In 2022, I started a business. I filed a Schedule C with income of $3,500 and expenses of $21,000 giving me a NOL of $17,500. My loss was carried over to Schedule 1 and offset my W-2 income. In 2023, my same business had income of $30,000 and expenses of $40,000 so my NOL was $10,000. My question is because I still have not had a profit does my NOL of $17,500 from 2022 carryover to Schedule 1 again + my current year 2023 NOL of $10,000 carryover to Schedule 1 giving me a total of $27,500 to offset my current 2023 W-2 income? Or because I have W-2 income, are the NOLs already absorbed each year by the offset? If so, then is my only 2023 NOL $10,000  instead of $27,500 carried over to Schedule 1?

Part 2 of the question is, does the same rule apply for QBI losses? Do my QBI losses carryover regardless of if I have W-2 income as an offset? Or are they considered absorbed also?

[Mike9241]

You stated that the $17K 2022 NOL was used to offset your w-2 income so if AGI for 2022 was positive there is no 2022 NOL to carryover, The rules for a QBI loss carryover are different. They can only offset QBI income. wages are not QBI income so that $17K is a QBI carryover to 2023. for 2023 you have only the current year $10K NOL to offset wages. In addition, your QBI loss carryover has increase by $10K

you can look at for 8995 for the QBI computation. 

one more thing. Be wary if you have a schedule C loss again in 2024. Depending on the facts and circumstances concerning the schedule 3 lack of profits can turn the schedule C loses in to hobby losses. IRC 183. If the IRS were to assert this and you cannot successfully rebut the iRS, income would be taxable but deductions for the most part would not be allowed.