Help with NOL

[Tax Newbie]

HI

This is my first time deducting a NOL carry forward from prior years NOL. I’m kind of confused about the amount that goes to line 21 of form 1040. My client has accumulated NOL since 2003 for more than $200,000. Do I put the entire NOL loss of more than $200,000 on line 21 or just enough to have zero taxable income? I know I have to use the “Worksheet for NOL Carry…” to calculate the carry forward. I just cannot find any information on what goes on line 21 if NOL is more than taxable income.

Again thanks for all your help

[JMovichEA]

All of it. Then do the worksheet that will calculate how much gets used up this year and carried forward.

[Tax Newbie]

Thanks so much for such a quick answer. I have another follow up question.

• On the Worksheet for NOL Carry From 2013 to 2014 where it said NOL Year - Can I write down 2003 to 2012 here? And on line 1 of the worksheet, do I put down the entire NOL accumulated since 2003? I'm hoping that I can do all years in one worksheet.

Again, thanks for all your help

[JMovichEA]

I'm assuming you have multiple NOLs from different years. Each one is listed since the earliest ones are used first. Don't combine all of the years in one amount.