NOL Carryforward Calculator 2026 β Net Operating Loss Tax Savings
Calculate how your NOL carryforwards reduce taxes under the post-TCJA 80% limitation rule. Project multi-year NOL absorption and remaining carryforward balance.
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Usable NOL This Year (80% cap)
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Tax Savings This Year
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Remaining NOL Carryforward
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Total NOL Available
NOL Calculation Summary
How to Use This NOL Carryforward Calculator
Enter your current year taxable income (before any NOL deduction) and your NOL carryforward amounts from up to 5 prior years. The calculator applies the post-TCJA 80% limitation β you can only deduct up to 80% of taxable income as NOL in any single year.
NOLs are used in the order they were created (oldest first). Any unused NOL carries forward indefinitely to future years.
The Post-TCJA NOL Rules
Total NOL Available = Sum of all NOL carryforwards
80% Limit = Current Year Taxable Income x 80%
Usable NOL = min(Total NOL, 80% Limit)
Taxable Income After NOL = Current Income - Usable NOL
Remaining Carryforward = Total NOL - Usable NOL (no expiration)
80% Limit = Current Year Taxable Income x 80%
Usable NOL = min(Total NOL, 80% Limit)
Taxable Income After NOL = Current Income - Usable NOL
Remaining Carryforward = Total NOL - Usable NOL (no expiration)
Example
Business had losses of $100,000 in 2022, now has $250,000 taxable income in 2026:
80% limit: $250,000 x 80% = $200,000
NOL available: $100,000 (less than $200,000 limit)
Usable NOL: $100,000 (full amount can be used)
Taxable income after NOL: $250,000 - $100,000 = $150,000
Tax savings (21% corp rate): $100,000 x 21% = $21,000
80% limit: $250,000 x 80% = $200,000
NOL available: $100,000 (less than $200,000 limit)
Usable NOL: $100,000 (full amount can be used)
Taxable income after NOL: $250,000 - $100,000 = $150,000
Tax savings (21% corp rate): $100,000 x 21% = $21,000
Extended
Multi-Year NOL Absorption Projection
Enter expected future income to see when your NOL will be fully absorbed and total tax savings
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Multi-Year NOL Absorption Schedule
| Year | Income | 80% Limit | NOL Used | NOL Remaining | Tax Savings |
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Frequently Asked Questions
What is the NOL carryforward rule after TCJA?
After the Tax Cuts and Jobs Act (TCJA) of 2017, Net Operating Losses (NOLs) generated in 2018 and later carry forward indefinitely β they no longer expire after 20 years. However, the deduction is limited to 80% of taxable income in any given year. There is generally no carryback allowed, except for farming losses which may carry back 2 years.
What is the 80% NOL limitation?
The 80% rule means you can only offset up to 80% of your current year taxable income with NOL carryforwards. For example, if you have $200,000 of taxable income and $300,000 of NOL carryforward, you can only use $160,000 (80% of $200,000) this year. The remaining $140,000 carries forward to the next year.
Can individuals use NOL carryforwards?
Yes, individuals can have NOLs, but the rules are more restrictive than for corporations after TCJA. Individual NOLs mainly arise from business losses (Schedule C, rental real estate losses, farm losses, or partnership/S-corp losses). The 80% limitation applies to individuals too. Personal deductions and non-business deductions are generally excluded from the NOL calculation.
Can I carry back an NOL to prior years?
Generally no β NOLs generated after 2017 cannot be carried back to prior years under TCJA rules. The only exception is for farming losses, which may be carried back 2 years. Prior to TCJA, NOLs could be carried back 2 years. COVID-19 relief under the CARES Act temporarily allowed 5-year carrybacks for 2018-2020 NOLs, but that provision has expired.
How do I track and report NOL carryforwards?
Keep a detailed NOL schedule showing the year each NOL was generated, the original amount, and the amount used in each subsequent year. Report NOL carryforwards on Form 1040 Schedule 1 (individuals) or Form 1120 (corporations). Attach a statement to your tax return showing the NOL computation. Your tax software should track this automatically, but always keep your own records.