To carryforward an amount from a previous year, which will make an entry on Line 23 of this form, follow this pathway:
- Federal Section
- Income
- Less Common Income
- Form 1045, Net Operating Loss Worksheet
How do I make adjustments to the amounts auto pulled by the program?
Form 172 for Net Operating losses can be found by following this pathway:
- Federal Section
- Miscellaneous Forms
- Net Operating Losses
Please note: The form is auto calculated based on your entries. In our program, entries in this form will adjust the amounts that are automatically pulled to the form based on your entries in the program.
What is Form 172, Net Operating Losses (NOLs)?
IRS Form 172 is used to figure the amount of net operating loss that is available to carry back or carry forward.
If your deductions for the year are more than your income for the year, you may have a net operating loss. An NOL year is the year in which an NOL occurs. You can use an NOL by deducting it from your income in another year or years. The program will auto calculate your current year NOL (if any). Use this form to adjust the amounts already pulled.
Note: You can only carry NOLs arising in tax years after 2020 to a later year. Exception to the No Carryback Rule applies to certain farming losses, which may be carried back 2 years.
How do I know if I have an NOL?
To qualify for an NOL, your loss must generally stem from deductions related to:
- Your trade or business,
- Employment (though this is not deductible for most taxpayers from 2018 through 2025),
- Casualty and theft losses due to a federally declared disaster,
- Moving expenses (which are not deductible for most taxpayers from 2018 through 2025), or
- Rental property.
Do I have a carryforward NOL for next year?
If your deductions exceed your income for that year, you may have an NOL. Additionally, if your NOL exceeds the taxable income of the year you carry it to (calculated before applying the NOL), you will typically have an NOL carryover to the following year.
Using our program, you can view the amount of your carryforward (if any) for next year in the PDF.