Entering an NOL carryover in the Individual module of Lacerte

For tax year 2024 the IRS is released Form 172 to show the calculation of Net Operating Losses for Individuals, Estates and Trusts. Part I will generate automatically along with the NOL Worksheets and shows current year NOL information. Part II is only required if doing an NOL Carryback.

Follow these steps to enter an NOL carryover in the program:

1. Go to Screen 15, Net Operating Loss Deduction.
2. Enter the Year of loss (e.g. 2023, ) (MANDATORY) (code 18).
3. Enter the Initial loss (code 22).
4. Enter the AMT initial loss (code 23) if applicable.
5. Enter the Carryover available in 2024(code 19).
6. Enter the AMT carryover available in 2024(code 13) if applicable.
   • The NOL Carryover will flow to Schedule 1, as Other Income.
7. Under the Loss section use the Add button to add any other years. f
8. If the Year of loss, Initial loss, or Carryover available in {current year} entries are missing, the carryover will not show on the return.
9. If the taxpayer is not doing an NOL carryback then Screen 60 for Form 1045 and Form 172 Part II is not required.

For most taxpayers, NOLs arising in tax years ending after 2020 can only be carried forward. See Net operating losses for more information.