1040-US: Entering a NOL carryback with losses for multiple carryback periods

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Question

How do I enter a NOL carryback that consists of losses for multiple carryback periods?

Answer

If the NOL consists of a combination of regular, eligible, or farming losses:

  1. Enter the longest applicable carryback period in the Carryback period field on Screen 1045.
  2. Enter the farming loss portion in the NOL 5 year farming loss carryback if not 100% of NOL field.
  3. Enter the eligible loss portion of the NOL in the NOL 3 year eligible loss carryback if not 100% of NOL field.

Notes

  • Any amount not entered in the 5-year or 3-year fields will be treated as a 2-year carryback.
  • Per the Form 1045 instructions, only the portion of the NOL attributable to eligible losses and farming losses should be entered in the 3-year and 5-year fields, respectively. More information on which losses qualify for each carryback period can be found in the Form 1045 instructions or in IRS Publication 536.

Related topic: Form 1045 and net operating loss worksheet FAQs (1040)

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