Carryforward refers to a provision in tax law allowing individuals or corporations to apply an unused deduction, credit, or loss from one tax year to future tax years, effectively reducing future taxable income or taxes owed.
Carryover refers to the process by which deductions and credits of one taxable year that cannot be used to reduce tax liability in that year are applied against tax liability in subsequent years.
The deduction of a net operating loss (NOL) incurred in one tax year in another tax year. This mechanism allows businesses to adjust their taxable income by carrying losses forward or backward to reduce tax liabilities.
