An NOL carryforward can only offset up to 80% of taxable income in any given year, with any unused balance carrying forward indefinitely.
How it works
80% of taxable income before the NOL deduction sets the maximum NOL usable this year. Whichever is smaller — that limit or the NOL available — is used, with any remainder carried forward to future years.
What this does not include
This computes the current-year NOL usage limit — this site’s separate excess-business-loss-limitation calculator covers a different, earlier-stage cap on how much of a *current-year* loss can become an NOL in the first place.
How to use this calculator
- Enter the NOL available and taxable income before the NOL deduction.
Frequently asked questions
Can an NOL be carried back to prior years instead?
Generally no for most NOLs arising after 2017 — the TCJA eliminated most carrybacks, though certain narrow exceptions (like specific farming losses) can still allow carrybacks.
Does the 80% limitation ever expire?
No — unlike some other TCJA provisions with sunset dates, the 80% taxable income limitation on NOL usage is a permanent feature of current law.
How long can an NOL be carried forward?
Indefinitely — there’s no expiration date on carrying forward an unused NOL balance under current law, unlike the prior 20-year limit that applied before the TCJA.
