Question

Net Operating Loss for 2020

Forum|Forum|4 years ago
June 15, 2021
1 reply
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How do I carryback to 2017, 2018 and or 2019 which I still owe taxes on? I'm a schedule C filer and use TurboTax Home and Business. Was planning on filing 2020 today. Mark

A

Anonymous_

Essentially, you have two choices:

1) Carry back the entire amount of the NOL from 2020 to 5 years before the NOL year (2020); or

2) Waive the carryback period and carry the NOL forward indefinitely until it is fully absorbed.

See https://www.irs.gov/publications/p536#en_US_2020_publink1000177354

Regardless, you cannot start the NOL carry back in the 2017 tax year (if you choose to carry back the NOL).

M

mstevens67Author

Thanks so much, I really appreciate that...I started my business in 2015, so I would carry it back to 2015, but end up using all of it probably on my 2017 return as I owe $1,800 on that year still.

How do I do that? Can I do it myself? Do I do something special with my 2020 taxes? Do I have to amend past years returns?