For most taxpayers, NOLs arising in tax years ending after 2020 can only be carried forward. See Net operating losses for more information.
How to enter a NOL carryover:
- Go to the Input Return workspace.
- Select Deductions and then Net Operating Losses.
- Select Regular NOL Deduction and then scroll down to Net Operating Loss Carryovers.
- Under Net Operating Loss Carryovers, enter all necessary figures into the TAX YEAR ENDED [OVERRIDE], NET OPERATING LOSS, and UTILIZATIONS (ENTER YEAR AND AMOUNT) fields for all carryovers you wish to carry into the current year’s return.
Example: There was a NOL in 2012 of $50,000. In 2013, $20,000 of that NOL was absorbed. In the input screen, in the line for 2012, enter $50,000 in the NET OPERATING LOSS field. Under UTILIZATIONS on the same line for 2012, enter 2013 in the DESCRIPTION field and $20,000 in the AMOUNT field.
How to enter a NOL carryback:
The Deductions ⮕ Net Operating Losses ⮕ Regular NOL Deduction ⮕ Net Operating Loss Carrybacks inputs are also based on the year a loss occurred. Enter any necessary figures into the REGULAR or CONSOLIDATED, IF DIFFERENT columns:
- Regular net operating loss: If the corporation sustained a NOL that it’s carrying back and there’s an unabsorbed portion remaining in 2007, enter the NOL in full.
- Utilizations: If the corporation suffered a NOL, and used any portion of the NOL as a deduction before the current year, enter the individual amounts and years you used the corresponding NOL (enter the year in the description field in yyyy or dd/mm/yyyy format). The program subtracts the total of these entries from the entry in the corresponding Regular Net Operating Loss to calculate the NOL available as a deduction.
