NOL Carryforward Calculator

A Net Operating Loss (NOL) occurs when your allowable tax deductions exceed your taxable income in a given year. Under post-TCJA rules, you can carry that loss forward indefinitely to offset taxable income in future years. Unlike prior law, there is no carryback allowed for most businesses (except farming), but the carryforward is unlimited in duration.

The Tax Cuts and Jobs Act (TCJA) of 2017 limits NOL deductions to 80% of taxable income in the year the NOL is applied. For example, if you have $100,000 of taxable income, you can deduct at most $80,000 of NOL in that year. The remaining NOL carries forward to future years.

For most businesses, the TCJA eliminated the carryback of NOLs generated in tax years beginning after December 31, 2017. However, farming losses retain a 2-year carryback. If you have a farming NOL, you can elect to carry it back 2 years for an immediate refund of prior taxes paid, or elect to waive the carryback and carry it forward instead.

Under post-TCJA rules, NOLs generated after 2017 can be carried forward indefinitely — there is no expiration date. This is an improvement from pre-TCJA law, which limited carryforwards to 20 years. Your NOL persists until it is fully utilized against future taxable income.

Use the tax rate that applies to your entity type. C-corporations pay a flat 21% federal corporate income tax rate (post-TCJA). Individuals, pass-through entities (S-corps, partnerships, sole proprietors), and self-employed taxpayers are taxed at ordinary income rates — the top marginal rate is 37% for income above $626,350 (single) or $751,600 (married filing jointly) in 2024. Select the rate that best matches your situation.