If a return has generated a Net Operating Loss (NOL) in the current year, there will be a Green Alert in the return titled Green Alert - Net Operating Loss. The NOL amount will be reflected on Line 25 of Form 1045 Schedule A-NOL. Instructions to review/modify the information and then print the schedule in the TaxAct® program are provided below followed by information on how to carry back that loss (if you do not elect to carry the loss forward). Note that if there was any gain in 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.
To print the schedule:
Note: If you see a message indicating you have not paid, you will need to click the link View/Pay which will direct you through the Paper Filing steps. Continue through the screens until you have processed the payment for your product fees and then repeat the steps to print.
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.
If you choose to carry the loss back to a prior year for a refund, you would complete Form 1045 Application for Tentative Refund in the TaxAct program. This form is NOT sent with your income tax return; mail it separately to the IRS.
To complete Form 1045 Application for Tentative Refund in the TaxAct program:
Alternatively, you can file Federal Form 1040X Amended US Individual Income Tax Return (also available through TaxAct) which would be mailed to the IRS with copies of the schedule or form that shows the year in which the loss or credit occurred. If you choose to file an amended return, attach a computation of the NOL, using Form 1045, for each year affected.
If the loss is not entirely used in the carryback years, any remaining loss (reflected on line 10 NOL carryover of the last column completed on Form 1045 Schedule B-NOL Carryover) would be used to complete the worksheet in IRS Publication 536 Net Operating Losses (NOLs) for Individuals, Estates and Trusts to calculate the amount to carry forward to Line 21 of Schedule 1 (Form 1040) in the first year following the loss. Use the worksheet on page 9 (instructions on page 8) to calculate the amount. 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 21 of Form 1040.
Form 1045. Generally, you must file Form 1045 on or after the date you file your tax return for the NOL year, but not later than one year after the end of the NOL year. If the last day of the NOL year falls on a Saturday, Sunday, or holiday, the form will be considered timely if postmarked on the next business day. For example, if you are a calendar year taxpayer with a carryback from 2018 to 2016 you must file Form 1045 on or after the date you file your tax return for 2018, but no later than December 31, 2019.
Form 1040X. If you do not file Form 1045, you can file Form 1040X to get a refund of tax because of an NOL carryback. File Form 1040X within 3 years after the due date, including extensions, for filing the return for the NOL year. For example, if you are a calendar year taxpayer and filed your 2016 return by the April 15, 2017, due date, you must file a claim for refund of 2016 tax because of an NOL carryback from 2018 by April 15, 2022. Attach a computation of your NOL using Form 1045, Schedule A, and, if it applies, your NOL carryover using Form 1045, Schedule B, discussed later.
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.
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
Note. The link above is updated each year automatically and will take you to the most recent IRS version of this publication at the time it is accessed.