Net Operating Loss Calculator

Use this calculator to compute your Net Operating Loss for a given tax year in the United States according to Form 1045 Schedule A.

For more details on business and nonbusiness income and deductions, see IRS Publication 536.

Year

Enter your tax return year.

Adjusted Gross Income

Find your adjusted gross income on form 1040.

Deductions

Find your standard deduction or itemized deductions on form 1040.

Non-Business Capital Losses or Gains

Find your non-business capital losses on form 1040 schedule D line 16. If it is not a loss, enter 0. Do not include any section 1202 exclusion amounts, which you can find in your form 1099-B worksheets.

Find your non-business capital gains on form 1040 schedule D line 16. If it is not a gain, enter 0. Be sure to enter the gains before any section 1202 exclusion, which you can find in your form 1099-B worksheets.

Non-Business Deductions

Enter deductions that aren't connected with a trade or business. They include:

• The STANDARD DEDUCTION [see form 1040 to see if you took the standard deduction];
• Most itemized deductions (except for casualty and theft losses resulting from a federally declared disaster and state income tax on trade or business income);
• IRA deductions;
• Health savings account deduction;
• Archer MSA deduction;
• Deductions for payments on behalf of a self-employed individual to a SEP, SIMPLE, or qualified plan;
• Alimony paid;
• Non-business charitable contributions [see form 1040 if you took the standard deduction or schedule A if you took itemized deductions].

Don't include any business deductions. These are deductions that are connected with a trade or business. They include:

• State income tax on income from a trade or business (including wages, salary, and unemployment compensation);
• Educator expenses;
• Moving expenses for members of the Armed Forces (see Pub. 521);
• The deduction for the deductible part of self-employment health insurance and the deduction for the deductible part of self-employment tax;
• Rental losses;
• Loss on the sale or exchange of business real estate or depreciable property;
• Your share of a business loss from a partnership or an S corporation;
• Ordinary loss on the sale or exchange of section 1244 (small business) stock;
• Ordinary loss on the sale or exchange of stock in a small business investment company operating under the Small Business Investment Act of 1958;
• Loss from the sale of accounts receivable if such accounts arose under the accrual method of accounting; and
• If you itemized your deductions, casualty or theft losses resulting from a federally declared disaster.

Non-Business Income

Enter income that isn't from a trade or business. Examples are ordinary dividends, annuities, and interest on investments.

Don't include business income. This is income from a trade or business and includes:

• Salaries and wages,
• Self-employment income,
• Unemployment compensation,
• Rental income,
• Gain on the sale or exchange of business real estate or depreciable property, and
• Your share of business income from a partnership or an S corporation.

Business Capital Losses or Gains

Enter business capital losses before any limitations.

Enter business capital gains before any section 1202 exclusion.

Schedule D Capital Losses or Gains

Enter your loss from form 1040 schedule D line 16. If it is not a loss, enter 0.

Enter your loss from form 1040 schedule D line 21. If it is not a loss, enter 0.

Section 1202 Exclusion

Enter any gain excluded under section 1202 on the sale or exchange of qualified small business stock.

NOL Deduction

Enter your net operating loss deduction, if you claimed a net operating loss deduction for losses from other years on this tax return. Note that starting in tax year 2021, your net operating loss deduction is limited to 80% of your taxable income. For example, if your taxable income is $100k, you can claim a maximum NOl deduction of $80k, which leaves a taxable income of $20k.