Transferring my 2022 tax returns (including state) on a PDF to Turbotax desktop

[Monguila]

Perhaps someone can help me. 

I have one PDF file with the 2022 returns (federal and state on the same PDF) that were originally created by a tax accountant using TurboTax.   I have been told that I can transfer it onto TurboTax desktop, as a foundation for the 2023 returns.  I have two question on this:

1. Will the state return also be transferred? 

2. Will tax items such as Net Operating Loss (NOL) at the federal and state levels be transferred? 

Thanks,

Luis

[CatinaT1]

Here is a FAQ: Can I transfer last year's PDF into TurboTax Desktop 2023?

[Monguila]

Thank you.

I had read that FAQ before but it is too general.  I am hoping for more details, specific to my two questions.

Luis

[VolvoGirl]

First of all your accountant could not use Turbo Tax.  He might have one of the professional programs from Intuit.  But that doesn't matter.   And you need to have the actual electronic pdf file not a printed or scanned copy.

You can transfer from the pdf but it's not worth it.  I wouldn't bother trying to transfer from a pdf. It only transfers very basic info like your name and address and AGI.  You need to have the Turbo Tax data file ending in .tax2022.  But since he didn't use Turbo Tax you won't have that one. 

You should start a brand new return and will have to enter any prior info manually as you go along.   

How to Transfer from a pdf into the Windows Desktop program
https://ttlc.intuit.com/community/using-turbotax/help/can-i-transfer-last-year-s-pdf-into-the-turbot...

You can Transfer a PDF into Windows Desktop if your 2022 PDF is a 1040 return generated through TurboTax, H&R Block, or TaxACT software (Form 1040-SR is not supported for PDF transfer).

[taxlady28]

1. Will the state return also be transferred? - No

2. Will tax items such as Net Operating Loss (NOL) at the federal and state levels be transferred? - No

All that will be transferred from a pdf is your basic information your name, date of birth, and social security numbers.  In order to transfer tax information you would need a tax file.

[Monguila]

Thank you.

I do have the the actual PDF file created by the CPA's software.  I know that what she uses an Intuit product but I can't say if it is TurboTax. 

I have been trying to load last years numbers on the online version of TurboTax online but, do to my lack of knowledge or software limitations, I can't figure out how to get the net operating losses (NOL) into it. Is  the desktop version more robust to accommodate this?

On the 2022 returns, the NOL appears on California form 3805V, as well as on a form called "Federal Statements."  The portion of the NOL used in 2022 appears on schedule 1.

Luis

[DawnC]

Here are the items that TurboTax will transfer from PDFs.  Net Operating Loss is a personal (individual) tax situation or calculation that TurboTax doesn't handle.    However, you can enter the amounts of your net operating loss carryover directly into TurboTax.    Search for net operating loss and use the Jump to net operating loss link to be taken to that screen.   You will be able to enter the 2022 net operating loss carryover amounts to apply to your 2023 tax return.  The amount will go to Schedule 1, Line 8.

The Program will determine your current year Net Operating Loss (NOL) and this amount will flow automatically to the Federal Carryover Worksheet.  HOWEVER, THE PROGRAM DOES NOT SUPPORT THE CALCULATION OF NOL CARRYOVERS.  THIS INCLUDES THE 80% LIMITATION PURSUANT TO THE TAX CUTS AND JOBS ACT.

Depending on how the state(s) in which you reside conforms to the different provisions of the federal NOL rules, you may need to calculate a separate state NOL, or adjust your state income for differences in NOL rules. States may apply limits to the NOL amount that can be deducted and may not allow the same NOL carryback opportunities. Look for more information on NOLs when preparing your state return.

If you believe you had a net operating loss on your tax return in the past, or even this year, but are unsure what to do with it, get IRS Form 1045 and Publication 536.

[Monguila]

When you refer to "...THE PROGRAM DOES NOT SUPPORT THE CALCULATION OF NOL CARRYOVERS," is this on the online version of TurboTax. How about on the desktop version? 

[MarilynG1]

Sounds like you should use the TurboTax Desktop product if you going to be dealing with NOL's.  You then have access to the actual tax forms, which you don't in TurboTax Online.

Although you can enter your NOL in TurboTax, it does not calculate it for you (neither Desktop nor Online). You need to use the IRS Worksheet each year for calculation.

Here's some info from the IRS Publication 536:

"When a net operating loss (NOL) is initially entered TurboTax will incorporate that into the current tax return once you have completed the NOL worksheet(s).  It will also know if any of the NOL was used on your tax return.  What TurboTax will not do is to calculate an NOL.

When the loss initially occurred, then the NOL worksheet was required to be prepared and depending on the year, you had an option to carryforward or were required to carry it back. 

The NOL must still be calculated and entered into TurboTax each year. Use the IRS publication to access the worksheets.

@Luis-reyes3010-g 

[Monguila]

Thank you.

NOL was calculated and carried forward, starting  in 2021. 

I will use the worksheet to calculate it for tax year 2023. 

[Monguila]

If I may follow up with you on this topic.

The NOL in this case will not go up, because the business was sold. Therefore, the amount will only decrement going forward by how much is used every year.  I looked into the worksheets that you recommended but I could not figure out which one to use for this case.

As an example, lets say that $30,000 of NOL is available for tax year 2023 and that the taxable income in 2023 is $10,000. I have read that 80% of taxable income can be applied to the available NOL.  Therefore:

1.  80% X 10, 000 = 8,000 than can be used in tax year 2023.

2.  22,000 NOL rolls to future years.

Is this correct, or is it an oversimplification of the calculation?

Thank you in advance.

[ThomasM125]

Yes, you are correct, you can use your prior year net operating loss to reduce your 2023 income up to 80% of the income. The remaining NOL gets carried forward to next year.