Electing to forgo an NOL carryback for an individual return in Lacerte

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.

To Make the Election to Forgo an NOL Carryback:

1. At the top of your screen, select the Other section and then select Elections.
2. In the left-hand column, select Misc. Elections and then CARES Act NOL Elections under Sections.
3. 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.