If the taxpayer's prior year federal income tax return had a net operating loss (NOL), or NOL carryover to the current tax year, it will need to be applied to this year's tax return.
Note that an NOL carryover is not the same as an unallowed loss carryover. A loss that's unallowed and carried forward, such as a passive loss carryover, is generally entered in the menu for the activity to which it relates.
How do you know last year's tax return has a NOL carryover?
If last year's return was tax year 2024 or later, look at the bottom of Form 172 for the amount of "Total NOL Carryover".
If last year's return was tax year 2023 or prior, look at the bottom of Schedule A (Form 1045), also known as the NOL Worksheet, for the amount of "Total NOL Carryover".
If you don't see a NOL Carryover in last year's return, there is no NOL to include in this year's return.
Where to enter a NOL Carryover
To enter a NOL carryover into the current year's tax return in TaxSlayer ProWeb, from the Federal Section of the tax return select:
- Income
- Other Income
- Form 1045
- NOL carryover from 20xx tax return - Enter the NOL carryover as a positive number.
Additional Information: