If you have had losses in prior years and did not actively participate in your business, your losses may have been limited. If you did not actively participate in the business, you should refer to your prior year tax returns to see if your losses were limited. If they were, you should review any detail that may indicate what losses were carried forward for future years.
After you finish your federal tax return, your information will accurately and automatically transfer into your state return. Just answer a few state specific questions, and you're done.
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