Is the Schedule C loss an NOL that can be carried forward? There is no other income, and the only deduction is the Standard Deduction.
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There are some steps to take to get from Schedule C loss to a carryover NOL, but yes to your question in general. (I don't remember the exact formula as i try to avoid NOLs, but I do have a client with one in progress right now.)
It's not that simple however. First, as part of your due diligence you should ask how the taxpayer supports themself without any (taxable) income and a loss on their business. Dipping into savings maybe?
Second, the state may not conform to current federal rules regarding limits and carryback/forward elections."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard -
If on the 1040 the AGI is negative due to schedule C loss, then you may have a NOL. See pub 536: https://www.irs.gov/publications/p536Comment
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