Question

Net Operating Loss Carryforward by Turbo Tax

Forum|Forum|5 years ago
March 20, 2021
1 reply
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I noticed that there is a line for Net Operating Loss Carryforward. Since I used Turbox for my tax return for many years, I am wondering if TurboTax can pull my previous record and calculate this number for me automatically.. If this is not possible, how can I obtain this number manually?

A

Anonymous_

TurboTax does not support the calculation of an NOL.

You can use the worksheet available at the IRS web site (link below) to figure your NOL.

https://www.irs.gov/publications/p536#en_US_2019_publink1000177330

G

George in SC

I don't think the answer addresses the question. The question was regarding tracking the carryforward amount for an NOL, not regarding the calculation of the NOL. Does TurboTax track and apply excess NOL to future years? If so, how can a user see how much of an NOL TurboTax applied in a current year and how much is carried forward to future years?

A

Anonymous_

Yes. The NOL is figured using your income less the standard or itemized deduction on your return. Any remaining amount should carry over into next year. There is a worksheet from the IRS here.

The software should carry your NOL forward but if it is not you can track it yourself and enter it on next year's return.

@stoykogd

Unfortunately, in my experience on test returns, the software does not carry an NOL forward automatically; the NOL needs to be entered manually each tax year.

See https://digitalasset.intuit.com/DOCUMENT/A2ETBITdw/122122-2022-unsupported-calcs-L1FQfTTgn.pdf

Net Operating Loss: If after completing your tax return you have a negative amount on Form 1040, line 15, and you had a loss from a business activity such as those reported on Schedules C, E, F, or resulting from dispositions on Form 4797, or sustained a casualty loss, you may have a Net Operating Loss (NOL). The program does not calculate the amount of NOL to be carried back or forward to another year. To determine your NOL, if any, refer to Form 1045, Schedule A (not included with this program). You will probably also benefit by reviewing IRS Publication 536 for details about the NOL calculation.