1120 Net Operating Loss (NOL) and Form 1139

Prior year Net Operating Loss (NOL) amounts are entered on the Net Operating Loss Worksheet. To access the worksheet Net Operating Loss Worksheet:

    1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
    2. Click Business Deductions dropdown, then click Net Operating Loss.

Use the appropriate line based on the year the net operating loss originated. Enter each year’s original NOL calculated on the tax return. Enter the carryback/carryforward used amount in the year line for which the NOL occurred. The NOL deduction allowed in the current year will be entered on Form 1120, Line 29a.

Please note that the NOL worksheet is NOT used to track the use of a single loss throughout a period of years, but is used to track the amount of loss available from a prior year that can be used on the current return.

Form 1139 – Corporation Application for Tentative Refund is used to apply for a refund from the carryback of a net operating loss. To access Form 1139:

Online Navigation:

    1. From within your TaxAct (Online) return, click the Tools dropdown, then click Forms Assistant).
    2. Click + next to the FEDERAL Forms folder to expand (if it is not already expanded), then click + next to the Forms and Schedules folder (if it is not already expanded).
    3. Click Form 1139 – Application for Change in Accounting Method: Quick Entry Available.

Desktop Navigation:

    1. From within your TaxAct Desktop return, click Forms in the options bar to view the Forms Explorer (if it is not already visible).
    2. Click Federal from the dropdown menu in Forms Explorer, then click the Forms and Schedules dropdown.
    3. Scroll down and click Form 1139 (if you already entered information on this form, it will appear in the Forms View).
    4. Enter the information directly on the form.