Claiming/using a NOL

[EdNay2458]

Good evening,

I am amending my 2019 1040 return and as a result will have a NOL (net operating loss).  I will also be amending the next year's (2020) return and would like to apply this NOL to it.

My questions are:

1.  Is there a form I need to file with my 2019 1040x form in order to claim my NOL?

2.  How do I apply/use this NOL when I amend my 2020 1040 return?

Thank you.

[Anonymous_]

See https://www.irs.gov/newsroom/frequently-asked-questions-about-carrybacks-of-nols-for-taxpayers-who-h...

You waive the carryback period and calculate your NOL for 2019.

See https://www.irs.gov/publications/p536#en_US_2022_publink1000177318

Your excess becomes the carryforward to the 2020 tax year.

I will page @Mike9241 for further input.

[Mike9241]

Section 2303 of the CARES Act¹ made several changes to the tax law regarding net operating losses arising in tax years beginning after December 31, 2017, and ending before January 1, 2021.² One change provides that NOLs arising in 2018, 2019, or 2020 must be carried back to the earliest of the preceding five years, and that after that carryback, any remaining unused portion of those NOLs is carried forward indefinitely. However, the five-year carryback period can be waived if a timely election to waive it is properly and timely made for each year in which that NOL arises. per IRC 172(b)(3)

*

the form to attach is 1045 schedule A for each year that an NOL arises and form 1045 for each year of the carryback

*

as to the 2019 and 2020 amended returns.  it is too late to waive the carryback period  and Turbotax no longer supports 2014-2018

*

the 2019 NOL is first carried back to 2014 and then and usused is carryforward.

the 2020 NOL s first carried back to the year where you have taxable income taking into account the 2019 NOL then carried forward. 

[Critter-3]

Short answer is this is NOT a DIY project and the TT program will not help you with the NOL carrybacks so seek local professional assistance for these NOL issues. 

[EdNay2458]

thank you