Support CenterSch C line 31 should be zero - Customer believes that the excess loss to the income should be carried over into the next year
🔍 Sch C line 31 should be zero (excess loss carryover)
This guide explains why Schedule C (Sch C) line 31 may need to be zero, and how the loss can carry over into the next year depending on which investment box you check.
⚠️ Before You Begin
Before making changes, review the instructions for:
- Sch C line 31
- Sch C line 32 (including 32a and 32b)
- Sch C line 33 (including 33b)
- Schedule 1 and how it flows to Form 1040
- Form 6198 (if applicable)
📊 Step-by-Step Guide
Step 1: Understand what Sch C line 31 is doing
Use this when you see that Sch C line 31 shows a loss.
On Sch C line 31, the amount is a loss. Based on the Sch C line 31 instructions, if there is a loss, it goes to line 32.
Step 2: Check Sch C line 32 instructions (32a vs. 32b)
Use this when you need to determine whether the loss flows through or carries over.
Line 32 has a 32a and a 33b. Based on the instructions for this line, you must check the box that describes your investment:
-
If you check box 32a (as is the case on this return), the amount will flow to:
- Sch C, line 31
- Schedule 1
- and then to 1040
-
If line 32b applies (for some investment at risk):
- In addition to completing Form 6198, Sch C line 31 will be zero
- and the loss will carry over
❌ Troubleshooting / Common Confusion
The customer believes the excess loss to the income should be carried over into the next year. However, whether the loss carries over depends on which investment box is checked on Sch C line 32:
- If 32a is checked, the loss flows through to Schedule 1 and then to 1040.
- If 32b is checked (investment at risk), then after completing Form 6198, Sch C line 31 should be zero and the loss carries over.
📞 Still Need Help?
If you are having trouble, contact our support team:
Phone: 1-800-516-9442
Tags: federal,form