net operation loss -1st step

It's zero, but having two $12,000 numbers in your example makes that pretty obscure. The computation is AGI minus the total of several things including standard deduction or itemized deductions. Assuming you don't have any of those other things, AGI of $-12,000 minus standard deduction of $12,000 is $-24,000 mathematically.

But take a look at form 1040. Line 15, which is where you enter the result of the subtraction, says "Taxable income. ... If zero or less, enter -0-".

If your AGI is negative, subtrating _any_ positive number from it will give a result less than 0, so your taxable income will be zero, not negative.

(I'm working from

, which is the 2021 form. But even if line 15 has a different number on the

2022 Form 1040, I think it's overwhelmingly likely that the line where you enter taxable income will still have a floor of zero.

So how is NOL calculated?

Thank you for the reply.

I'm still c "1. For individuals, subtract your standard deduction or itemized deductions from your AGI and enter it here."

If the mathematical result is -24,000, shouldn't I enter -24,000 in Line

1 of Worksheet 1?

For now, I'm only focusing on filling out Worksheet 1 (because I need to use this worksheet to figure out my net operation loss), not any other forms.

(*) Or if it is, then the Find command in my PDF viewer doesn't work.