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If a return has generated a Net Operating Loss (NOL) in the current year, there will be a Green Alert in the return titled Explanation: Net Operating Loss. The NOL amount will be reflected on Line 25 of Form 1045 Schedule A-NOL.

Instructions to review or modify the information and then print the schedule in the TaxAct® program are provided below, followed by information on how to elect to carry forward that loss and how to enter that loss in the following year’s return.


Review or Modify Form 1045 Schedule A-NOL

  1. Sign in to your TaxAct Online return
  2. Click the Tools to expand the category then click Forms Assistant
  3. Expand the Federal folder
  4. Scroll down and click on Form 1045 - Schedule A--NOL
  5. Click the Form icon to the right of the form to. Click OK to confirm you wish to delete the form, schedule, document, or worksheet

To print the schedule:

  1. Sign in to your TaxAct Online return
  2. Click the My Return button in the top right corner
  3. Click Print Center, then click Custom
  4. Click on the checkbox(es) to the left of the item(s) (the top section lists individual forms and schedules) or (the bottom section lists documents received or worksheets) which you wish to view or print (you may need to scroll down in the section to locate the item(s))
  5. Click Print and then click the PDF link. The item will appear in a PDF read-only format. At that time you can click the printer icon on the screen to actually print, or close the window without printing.

Note. If, after you click Print in Step 5 above, you are directed to the Payment Option screen, you will need to process the product fees prior to printing.

  1. Click the Forms button in the top left corner of the toolbar
  2. Expand the Federal folder and then expand the Forms and Schedules folder
  3. Double click Form 1045 - Schedule A--NOL
  4. The schedule will appear on the right side of your screen. Fields with a green entry (or 0) are user entered fields where you would determine if any amount needs to be entered in that field. Fields with a blue entry (or 0) are either program calculated fields, or if you click on the field and a yellow manila folder icon appears to the side, those entries are being transferred from supporting forms. Click on the manila folder icon to view or modify the supporting form that populates that field.
  5. Click on the Printer Icon above the schedule to actually print the schedule. In the Print dialog box that appears you are able to choose if you wish to send the output to a printer or a PDF document and also whether you prefer to only print preview the schedule. Remember to clear the checkbox "Print Preview"when you do actually want the schedule to print.

Note. If there was any gain on the return excluded under section 1202 on the sale or exchange of qualified small business stock, that would need to be entered as a positive number on Line 17 of Form 1045 Schedule A-NOL.


Making the Election to Waive Carryback Period

To make the choice to only carry the loss forward you must attach a statement to the original return filed by the due date (including extensions) for the NOL year. This statement must show that you are choosing to waive the entire carryback period for the current year NOL under section 172(b)(3) of the Internal Revenue Code. With TaxAct you are able to electronically file your return and include this statement.

To make Election to Waive the Carryback Period and to include the NOL Election Explanation in your TaxAct return to be either paper filed or electronically filed:

  1. Click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Miscellaneous Topics to expand the category and then click Net Operating Loss (NOL)
  3. On the screen titled Net Operating Loss (NOL), select the checkbox to elect to waive the carryback period and carryforward your NOL

Entering the Loss on the Following Year's Return

As any NOL in the current year has the potential to be carried back or forward, depending on the choices made by the taxpayer, the TaxAct program does not automatically calculate the amount to be carried forward to the following year in an import situation. To enter the calculated amount of the carried forward loss on Federal Schedule 1 (Form 1040), Line 8 in the TaxAct return following the year of the loss, follow the steps below. You will still be able to electronically file your tax return.

  1. Click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Other Income to expand the category and then click Net Operating Loss (NOL) Carryforward
  3. Enter the appropriate amount from your calculations on Form 1045 that is to be carried forward to the current year

If the loss is not entirely used in the first year following the loss year, or if there are NOLs being carried forward from multiple years, to calculate the amount to enter on Federal Schedule 1 (Form 1040), Line 8, see IRS Publication 536 Net Operating Losses (NOLs) for Individuals, Estates and Trusts. Use the worksheet on page 9 (instructions on page 8) to calculate the amount to enter on Federal Schedule 1 (Form 1040), Line 8. If there are NOLs being carried forward from multiple years, you must calculate each amount separately and then add them together to enter on Line 8.

Note. If you import your information to the following year in the TaxAct program, and do not enter an amount of carryforward loss, you will see a Green Alert Error or Omission: NOL Carryforward warning you that last year you indicated you were carrying forward the loss but there is no amount entered for Federal Schedule 1 (Form 1040), Line 8 in the current year.


Additional Information

IRS Publication 536 Net Operating Losses (NOLs) for Individuals, Estates and Trusts explains how to figure an NOL, when to use it, how to claim an NOL deduction and how to figure an NOL carryover.

Other related forms and worksheets:

Form 1045 Application for Tentative Refund
Form 1045 Application for Tentative Refund Additional Forms
Form 1045 Schedule A--NOL (form listed in the instructions above)
Form 1045 Schedule B--NOL Carryover
Form 1045 Net Operating Loss Classification Worksheet
Form 1045 Detail and Notes - Detail and Notes Worksheet

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