Calculate Net Operating Loss (NOL) carryforward value, tax savings, and expiration tracking. Analyzes historical NOLs, applies 80% taxable income limitation (2018+ NOLs), tracks indefinite carryforward (no expiration), calculates multi-year tax savings at marginal rates, and identifies expiring pre-2018 NOLs (20-year limit). Supports C-Corp and pass-through entities.
Frequently Asked Questions
How do NOL carryforward rules work under TCJA 2025?
Post-2017 NOLs: unlimited carryforward (no expiration), 80% taxable income limitation per year, no carryback (except 2018-2020 CARES Act).
Pre-2018 NOLs: 20-year carryforward, 100% offset, expire in 2037 or earlier.
Example: $500k NOL from 2023 + $300k 2025 income = deduct $240k max (80% of $300k), $500k - $240k = $260k carries to 2026.
What is the 80% limitation and how does it affect my taxes?
80% limitation means NOL can only offset 80% of taxable income each year (for post-2017 NOLs).
Example: $1M taxable income, $2M NOL carryforward = deduct $800k max (80% of $1M), pay tax on $200k.
Remaining $1.2M NOL carries forward indefinitely.
This extends NOL utilization over more years vs prior 100% offset.
How much tax can I save with an NOL carryforward?
Tax savings = NOL deduction × marginal tax rate.
Example: $500k NOL, 21% C-Corp rate = $105k total tax savings.
If spread over 3 years: Year 1 $200k deduction ($42k saved), Year 2 $200k ($42k), Year 3 $100k ($21k).
For pass-through: $500k NOL at 37% individual rate = $185k total savings.
Time value of money reduces present value if spread over many years.
Do pre-2018 NOLs expire and when?
Yes, pre-2018 NOLs expire after 20 years from origination year.
Example: 2010 NOL expires end of 2030. 2017 NOL expires 2037.
Track expiration dates carefully—use oldest NOLs first (FIFO ordering).
Post-2017 NOLs never expire (indefinite carryforward) but are subject to 80% limitation.
Check if any pre-2018 NOLs will expire unused within 2-3 years and accelerate income to utilize.
Can I carry back NOLs to prior years for refunds?
Generally NO for post-2017 NOLs (TCJA eliminated carryback).
Exception: CARES Act allowed 5-year carryback for 2018-2020 NOLs only (expired).
Pre-2018 NOLs had 2-year carryback.
Example: 2024 $500k NOL cannot be carried back to 2023 for refund, only carried forward.
For farming losses: special 2-year carryback still available.
File Form 1045 or 1139 for carryback refunds if eligible.
How do state NOL rules differ from federal?
State rules vary widely: some conform to federal TCJA changes, others retain old rules.
California: pre-2020 NOLs suspended 2020-2022 (now usable), 80% limitation, $1M cap for some taxpayers.
New York: follows federal but has separate NOL tracking.
Texas: no income tax, N/A.
Recommend: track federal and state NOLs separately, check state-specific limitations/expirations, consider entity domicile changes if large NOLs.
About This Page
Editorial & Updates
- Author: SuperCalc Editorial Team
- Reviewed: SuperCalc Editors (clarity & accuracy)
- Last updated: 2026-01-13
We maintain this page to improve clarity, accuracy, and usability. If you see an issue, please contact hello@supercalc.dev.
Financial/Tax Disclaimer
This tool does not provide financial, investment, or tax advice. Calculations are estimates and may not reflect your specific situation. Consider consulting a licensed professional before making decisions.