Net Operating Loss (NOL) Carryforward Calculator
Calculate how much of your prior-year Net Operating Loss carryforward you can apply this year under post-TCJA rules — capped at 80% of current taxable income with indefinite remaining carryforward.
| Year Detail | |
| Current Taxable Income (Pre-NOL) | — |
| Pre-2018 NOL Available (100%) | — |
| Post-2017 NOL Available (80% cap) | — |
| Application Order | |
| Step 1: Pre-2018 NOL Applied | — |
| Income After Step 1 | — |
| Step 2: Post-2017 NOL Applied (80% cap) | — |
| Income After Step 2 | — |
| Tax Savings (Marginal Rate × NOL Used) | — |
A Net Operating Loss (NOL) carryforward calculator computes how much of a prior-year business loss you can apply against current-year taxable income under post-TCJA rules — limited to 80% of current taxable income for losses generated after 2017.
How NOL Rules Changed — TCJA, CARES, OBBB
Before TCJA, NOLs could offset 100% of taxable income, carry back 2 years, and carry forward 20 years. TCJA (Dec 2017) eliminated carrybacks (with narrow exceptions), set 80% income cap, and made carryforward indefinite. CARES Act (March 2020) temporarily restored 5-year carryback for losses from 2018-2020 and removed the 80% cap for those years. Post-2020 losses revert to the TCJA framework (source: irs.gov).
Pre-2018 vs Post-2017 NOL Ordering
When you have both pre-2018 and post-2017 NOLs, apply pre-2018 NOLs first (no cap, 20-year expiration). Then apply post-2017 NOLs against remaining income, capped at 80% of the remaining taxable income. This ordering maximizes total NOL usage. Track each layer separately on Schedule NOL because pre-2018 NOLs that expire are gone — post-2017 NOLs never expire and can wait.
State NOL Conformity
State NOL rules vary widely. Some states (California, Wisconsin) decoupled from TCJA's 80% cap, retain 20-year limits, or impose state-specific suspensions. New York and California have suspended NOL usage entirely in some years. Always compute state NOLs separately from federal — never assume conformity. Check your state's Department of Revenue guidance.
NOL Carryforward for LLCs, S-Corps, and Sole Proprietors: Pass-Through Rules 2026
Per IRS Publication 536 (Net Operating Losses for Individuals, Estates, and Trusts), pass-through NOLs flow to the owner's Form 1040 — not the entity return. Sole proprietors combine Schedule C losses with other income; a net loss becomes an NOL if it exceeds nonbusiness income. Single-member LLC owners follow the same sole-proprietor rules unless they elect corporate treatment. Partnership and S-corp K-1 losses pass to owners subject to Section 461(l) excess business loss limits — capped at $305,000 single / $610,000 MFJ in 2026 (indexed). Losses above the cap convert to NOLs and roll to the next year. Basis and at-risk rules take priority: you cannot deduct a partner/shareholder loss beyond your outside basis or at-risk amount, even if it would otherwise be a valid NOL. Track basis meticulously — the IRS 2026 focus areas include partnership basis discrepancies and K-1 loss claims exceeding invested capital.
Last updated July 2026. Sources: IRS NOL Guidance, IRC Section 172, IRS Publication 536.