Depending on the source of the prior year loss, it may be entered in different menus in the tax program:
Entering a prior year net operating loss on Form 1040
From the Main Menu of the Tax Return (Form 1040 / Tax Return Summary) select: Federal Section > Income > Other Income > Net Operating Loss (NOL) from Prior Year(s)
Entering a prior year unallowed loss on Schedule C
From the Main Menu of the Tax Return (Form 1040 / Tax Return Summary) select: Federal Section > Income > Profit or Loss from Business. Create a new Schedule C entry, or select edit next to an existing Schedule C entry. Select Questions About the Operation of Your Business > Enter the prior year unallowed loss in the space provided:
Entering a prior year unallowed loss on Schedule E
From the Main Menu of the Tax Return (Form 1040 / Tax Return Summary) select: Federal Section > Income > Supplemental Income and Loss. Create a new Schedule E entry, or select edit next to an existing Schedule E entry. Select Expenses > Enter the prior year unallowed loss in the space provided:
Entering a prior year unallowed loss on Schedule F
From the Main Menu of the Tax Return (Form 1040 / Tax Return Summary) select: Federal Section > Income > Profit or Loss From Farming. Create a new Schedule F entry, or select edit next to an existing Schedule F entry. Select Basic Information About Your Farm > Enter the prior year unallowed loss in the space provided:
