net loss carryforward

amydodge2001
amydodge2001 Member Posts: 2 Newcomer
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Is it necessary to enter qualified business net loss carryforward from prior years?

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  • AlexO
    AlexO FreeTaxUSA Agent Posts: 102
    Answer ✓

    The carryforward may reduce your current year deduction, which will increase your tax.

    You cannot leave it off. The IRS requires you to claim the carryforward, even if it causes you to owe more tax.

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  • GarrettE
    GarrettE FreeTaxUSA Agent Posts: 8

    Entering your qualified business net loss carryforward from prior years will be beneficial to your tax return. Doing so will potentially reduce your taxable income and lower your overall tax liability. Not entering this on your tax return means that your tax due or refund may be incorrect.

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  • amydodge2001
    amydodge2001 Member Posts: 2 Newcomer

    It is actually increasing my tax due? I think due to the qualified business credit decreasing, that is why I wondered if it was ok to just leave it off?

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