NOL 2015, want to carry-forward to 2016. Does TurboTax calculate the negative figure for line 21 on 2015 return?

[dickiebo]

NOL 2015, want to carry-forward to 2016. Does TurboTax calculate the negative figure for line 21 1040 on the 2015 return?

[JohnH2 · Accepted solution]

TurboTax does carry your NOL forward.  You can see this in the Desktop products in the “Federal Carryover Worksheet” on Line 14.  This same worksheet is available in the On-Line products.Form 1040, Line 21 is input by the taxpayer and can be either a positive or negative number.  The menu path for this input, in the Home and Business Desktop product is as follows:  Personal>Personal Income>I’ll choose what I work on>Less Common Income>Miscellaneous Income>Start>Other Reportable Income>Start>Any Other Taxable Income?>[Yes]>Other Taxable Income, Description, Amount.

[LorenAmelang]

I'm using Premier 2015. My “Federal Carryover Worksheet” Line 14 is blank, despite a Sch.C loss (1040 line 12) and a current year loss from a dissolved partnership (1040 line 17), and no other taxable income. (The worksheet line 13 did capture the long-term capital loss from the partnership.) In 2013 I had a similar Sch.C NOL that was successfully carried back by the IRS, and TurboTax did not record that one either.

Are you suggesting we should enter something on 1040 line 21 to tell TurboTax to convert this year's losses to a NOL? I found the "Other Income Statement" which has a provision for entering a "NOL carryover from a prior year", complete with an Explanation Statement, that will show up on line 21 - which looks perfect for (hopefully!) next year. But I don't see how one would use that to trigger a carryforward of this year's NOL inside TurboTax. In 2013 I was told TurboTax simply did not handle the carryback/forward of a NOL at all.

Have I missed something here?

[JohnH2]

TurboTax carries a NOL forward, but not back.  To carry a NOL back, Form 1045 is used.  This is manually prepared by the taxpayer.  You can use the "NOL carry forward from a prior year" if you did not use TurboTax in the prior year.

[LorenAmelang]

"TurboTax carries a NOL forward" - that's what I want! So what does it do with it? Where do I look to see the evidence? Does it "just happen", or do I need to enter some special items? Or do you not mean it carries literal numbers?

[bajapete]

TurboTax is dropping the ball here by not answering how does Turbo Tax carryforward a NOL

[minda-lucario73]

And i will ask this question again................."TurboTax carries a NOL forward" - that's what I want! So what does it do with it? Where do I look to see the evidence? Does it "just happen", or do I need to enter some special items? Or do you not mean it carries literal numbers? I need this answered because i had a NOL that i elected to carry forward on my 2014 taxes but line 21 on my 1040 is showing absolutely nothing as well as line 14 on my Federal Carryover worksheet! SO, where is my figure that was to be carried forward from 2014 to 2015.

[bajapete]

I found out that only the Pro Series Professional product handles NOL

[minda-lucario73]

wow! thank you for responding and sharing the info you found out! it would be nice if turbotax would make us aware of these things prior to filing so we wouldn't have to amend! It would have cost me less to go to an accountant to have them done!

[bajapete]

Your info is incorrect. TurboTax does not calculate the NOL forward. Only the Professional Series product does this calculation.