This article explains how to make the election to forgo an NOL carryback for an individual return.
Most taxpayers no longer have the option to carryback a net operating loss. These instructions only apply to returns for tax years 2018-2020. Learn more >
To Make the Election to Forgo an NOL Carryback:
- At the top of your screen, select the Other section and then select Elections.
- In the left-hand column, select Misc. Elections and then CARES Act NOL Elections under Sections.
- You'll see three checkboxes. Check the one applicable to the NOL.
- Once an election is made, the NOL will show as a carryover on the NOL Wkshts section in the Forms tab and will no longer be subject to a two or three year carryback period. During the proforma process, the NOL will transfer to the next year's program.
- If the return has a farming loss, select Waive farming loss carryback period [172(b)(1)(B)(iv)] (input sheet code 15) under Miscellaneous Elections.