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Entering an NOL carryover in the Individual return in ProConnect Tax(Diagnostic ref. 53656)

by Intuit• Updated 1 month ago

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

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

  1. From the Input Return tab, go to Income ⮕ Net Operating Loss ⮕ Federal Net Operating Loss ⮕ Details
  2. Enter the Year of loss (e.g., 2022) (MANDATORY).
  3. Enter the Initial loss.
  4. Enter the AMT initial loss if applicable.
    • The NOL Carryover will flow to Schedule 1, as Other Income

If the Year of loss, Initial loss, or AMT initial loss entries are missing, the carryover will not show on the return.

For tax year 2021, if there is an NOL for 2018 or newer, you'll receive diagnostic ref #53656:

NOL #: The program doesn't automate the limitation of post-2017 net operating losses to 80% of taxable income, before taking into account any NOL deduction. You must override the amount of post-2017 NOL carryforward absorbed this year so it does not exceed the 80% of taxable income limit.

Calculate the allowable amount of the NOL and enter the override on Screen 15 in the NOL absorbed in 2024 field. See here for the most up to date information from the IRS.

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