Carryover provisions

Carryover provisions are rules that allow individuals to transfer unused amounts of certain tax benefits, such as losses or credits, from one year to the next. This helps reduce future tax liabilities when current-year benefits are not fully used. For example, if you have a business loss this year that exceeds your income, you might carry the remaining loss forward to offset income in future years. These provisions ensure that valuable tax benefits aren’t lost due to timing or income limitations, providing more flexibility in managing tax obligations over multiple years.