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Department of the Treasury
Internal Revenue Service
Publication 536
Cat. No. 46569U
Net Operating
Losses (NOLs)
for
Individuals,
Estates, and
Trusts
For use in preparing
2023 Returns
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Contents
Future Developments ....................... 1
Reminders ............................... 1
Introduction .............................. 2
NOL Steps ............................... 2
How To Figure an NOL ...................... 3
Worksheet 1. Figuring Your NOL ............. 5
When To Use an NOL ....................... 6
Waiving the Carryback Period ............... 6
How To Carry an NOL Back or Forward ........ 7
How To Claim an NOL Deduction .............. 7
Deducting a Carryback .................... 7
Deducting a Carryforward .................. 8
Change in Marital Status ................... 9
Change in Filing Status .................... 9
How To Figure an NOL Carryover ............. 10
NOL Carryover From 2023 to 2024 ............ 10
Worksheet 2 Instructions .................. 10
Excess Business Loss ..................... 13
How To Get Tax Help ....................... 13
Index .................................. 18
Future Developments
For the latest information about developments related to
Pub. 536, such as legislation enacted after it was
published, go to IRS.gov/Pub536.
Section references are to the Internal Revenue Code
unless otherwise noted.
Reminders
NOL carryback eliminated. Generally, you can only
carry NOLs arising in tax years ending after 2020 to a later
year. An exception applies to certain farming losses,
which may be carried back 2 years. See section 172(b)
and Pub. 225, Farmer's Tax Guide.
NOL deduction limitation. In general, your NOL deduc-
tion for tax years beginning after December 31, 2020, can-
not exceed the sum of (1) the NOLs carried to the year
from tax years beginning before January 1, 2018; plus, (2)
the lesser of: (a) the NOLs carried to the year from tax
years beginning after December 31, 2017, or (b) 80% of
the excess (if any) of taxable income computed without re-
gard to deductions for NOLs, or Qualified Business In-
come (QBI), or section 250 deductions, over the NOLs
carried to the year from tax years beginning before Janu-
ary 1, 2018.
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Annual losses limited. The Tax Cuts and Jobs Act
(TCJA), section 11012, as amended by the CARES Act,
section 2304, and as further amended by the Inflation Re-
duction Act, section 13903, revised section 461(l) to limit
the amount of losses from the trades or businesses of
noncorporate taxpayers that the taxpayer can claim each
year, beginning after 2020 and ending before 2029. You
can't deduct net losses in excess of a threshold amount in
the current year. The amount of the excess business loss
is treated as an NOL for the current year for purposes of
determining any NOL carryover for later tax years. Use
Form 461 to figure the excess business loss. Also see
Worksheet 3, later.
Photographs of missing children. The IRS is a proud
partner with the National Center for Missing & Exploited
Children® (NCMEC). Photographs of missing children se-
lected by the Center may appear in this publication on pa-
ges that would otherwise be blank. You can help bring
these children home by looking at the photographs and
calling 800-THE-LOST (800-843-5678) if you recognize a
child.
Introduction
If your deductions for the year are more than your income
for the year, you may have a net operating loss (NOL). An
NOL year is the year in which an NOL occurs. You can use
an NOL by deducting it from your income in another year
or years.
What this publication covers. This publication dis-
cusses NOLs for individuals, estates, and trusts. It covers:
•
How to figure an NOL,
•
When to use an NOL,
•
How to claim an NOL deduction,
•
How to figure an excess business loss, and
•
How to figure an NOL carryover.
To have an NOL, your loss must generally be caused by
deductions from your:
•
Trade or business,
•
Work as an employee (although not deductible for
most taxpayers for 2018 through 2025),
•
Casualty and theft losses resulting from a federally de-
clared disaster,
•
Moving expenses (although not deductible for most
taxpayers for 2018 through 2025), or
•
Rental property.
A loss from operating a business is the most common
reason for an NOL.
Partnerships and S corporations generally cannot use
an NOL. However, partners or shareholders can use their
separate shares of the partnership's or S corporation's
business income and business deductions to figure their
individual NOLs.
Keeping records. You should keep records for any tax
year that generates an NOL and all years to which the loss
can be carried for 3 years after you have used the carry-
back/carryforward or 3 years after the carryforward ex-
pires.
You should attach all required documents to the
Form 1045 or Form 1040-X. For details, see the
instructions for Form 1045 or Form 1040-X.
What is not covered in this publication? The follow-
ing topics are not covered in this publication.
•
Bankruptcies. See Pub. 908, Bankruptcy Tax Guide.
•
NOLs of corporations. See Pub. 542, Corporations.
Comments and suggestions. We welcome your com-
ments about this publication and suggestions for future
editions.
You can send us comments through IRS.gov/
FormComments. Or, you can write to the Internal Revenue
Service, Tax Forms and Publications, 1111 Constitution
Ave. NW, IR-6526, Washington, DC 20224.
Although we can’t respond individually to each com-
ment received, we do appreciate your feedback and will
consider your comments and suggestions as we revise
our tax forms, instructions, and publications. Don’t send
tax questions, tax returns, or payments to the above ad-
dress.
Getting answers to your tax questions. If you have
a tax question not answered by this publication or the How
To Get Tax Help section at the end of this publication, go
to the IRS Interactive Tax Assistant page at IRS.gov/
Help/ITA where you can find topics by using the search
feature or viewing the categories listed.
Getting tax forms, instructions, and publications.
Go to IRS.gov/Forms to download current and prior-year
forms, instructions, and publications.
Ordering tax forms, instructions, and publications.
Go to IRS.gov/OrderForms to order current forms, instruc-
tions, and publications; call 800-829-3676 to order
prior-year forms and instructions. The IRS will process
your order for forms and publications as soon as possible.
Don’t resubmit requests you’ve already sent us. You can
get forms and publications faster online.
Useful Items
You may want to see:
Form (and Instructions)
1040-X Amended U.S. Individual Income Tax Return
1045 Application for Tentative Refund
461 Limitation on Business Losses
NOL Steps
Follow Steps 1 through 5 to figure and use your NOL.
TIP
1040-X
1045
461
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Step 1. Complete your tax return for the year. You may
have an NOL if a negative amount appears in these ca-
ses.
•
Individuals—You subtract your standard deduction or
itemized deductions from your adjusted gross income
(AGI).
•
Estates and trusts—You combine taxable income,
charitable deductions, income distribution deduction,
and exemption amounts from your Form 1041.
Step 2. Determine whether you have an NOL and its
amount. See How To Figure an NOL, later. If you do not
have an NOL, stop here.
Step 3. If applicable, decide whether to carry the NOL
back to a past year, or to waive the carryback period and
instead carry the NOL forward to a future year. See When
To Use an NOL, later.
Step 4. Deduct the NOL in the carryback or carryforward
year. See How To Claim an NOL Deduction, later.
Step 5. Determine the amount of your unused NOL. See
How To Figure an NOL Carryover, later. Carry the unused
NOL to the next carryback or carryforward year and begin
again at Step 4.
Note. If your NOL deduction includes more than one
NOL amount, apply Step 5 separately to each NOL
amount, starting with the amount from the earliest year.
How To Figure an NOL
If your deductions for the year are more than your income
for the year, you may have an NOL.
There are rules that limit what you can deduct when fig-
uring an NOL. In general, the following items are not al-
lowed when figuring an NOL.
•
Capital losses in excess of capital gains.
•
The section 1202 exclusion of the gain from the sale
or exchange of qualified small business stock.
•
Nonbusiness deductions in excess of nonbusiness in-
come.
•
The NOL deduction.
•
The section 199A deduction for qualified business in-
come.
Worksheet 1. Figuring Your NOL. Use Worksheet 1 to
figure your NOL. The following discussion explains Work-
sheet 1. See the Instructions for Form 1045. If line 1 is a
negative amount, you may have an NOL.
Nonbusiness capital losses (line 2). Don’t include on
this line any section 1202 exclusion amounts (even if en-
tered as a loss on Schedule D (Form 1041)).
Nonbusiness deductions (line 6). Enter as a positive
number on line 6 deductions that are not connected to
your trade or business or your employment. Examples of
deductions not related to your trade or business are:
•
Alimony paid,
•
Deductions for contributions to an individual retire-
ment account (IRA) or a self-employed retirement
plan,
•
Health savings account deduction,
•
Archer medical savings account deduction,
•
Most itemized deductions (except for casualty and
theft losses resulting from a federally declared disas-
ter and state income tax on trade or business income),
and
•
The standard deduction.
Do not enter business deductions on line 6. These are
deductions that are connected to your trade or business.
They include the following.
•
State income tax on income from your trade or busi-
ness (including wages, salary, and unemployment
compensation).
•
Moving expenses for members of the Armed Forces
on active duty.
•
Educator expenses.
•
The deduction for the deductible part of self-employed
health insurance and the deduction for the deductible
part of self-employment tax.
•
Rental losses.
•
Loss on the sale or exchange of business real estate
or depreciable property.
•
Your share of a business loss from a partnership or an
S corporation.
•
Ordinary loss on the sale or exchange of section 1244
(small business) stock.
•
Ordinary loss on the sale or exchange of stock in a
small business corporation or a small business invest-
ment company.
•
If you itemize your deductions, casualty and theft los-
ses resulting from a federally declared disaster (even
if they involve nonbusiness property).
•
Loss on the sale of accounts receivable (if you use an
accrual method of accounting).
•
Interest and litigation expenses on state and federal
income taxes related to your business.
•
Unrecovered investment in a pension or annuity
claimed on a decedent's final return.
•
Payment by a federal employee to buy back sick leave
used in an earlier year.
Nonbusiness income (line 7). Enter on line 7 only in-
come that is not related to your trade or business or your
employment. This includes the following.
•
Your taxable IRA distributions.
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•
Pension benefits.
•
Social security benefits.
•
Annuity income.
•
Dividends.
•
Interest on investments.
•
Your share of nonbusiness income from a partnership
or an S corporation.
Do not include on line 7 the income you receive from
your trade or business or your employment. This includes
the following.
•
Salaries and wages.
•
Self-employment income.
•
Unemployment compensation.
•
Rental income.
•
Ordinary gain from the sale or other disposition of
business real estate or depreciable business property.
•
Your share of business income from a partnership or
an S corporation.
Adjustment for section 1202 exclusion (line 17). En-
ter as a positive number on line 17 any gain you excluded
under section 1202 on the sale or exchange of qualified
small business stock.
Adjustments for capital losses (lines 19–22). The
amount deductible for capital losses is limited based on
whether the losses are business capital losses or nonbus-
iness capital losses.
You can deduct your nonbusiness capital losses (line 2)
only up to the amount of your nonbusiness capital gains
without regard to any section 1202 exclusion (line 3). If
your nonbusiness capital losses are more than your non-
business capital gains without regard to any section 1202
exclusion, you cannot deduct the excess.
You can deduct your business capital losses (line 11)
only up to the total of:
•
Your nonbusiness capital gains that are more than the
total of your nonbusiness capital losses and excess
nonbusiness deductions (line 10), and
•
Your total business capital gains without regard to any
section 1202 exclusion (line 12).
NOLs from other years (line 23). You cannot deduct
any NOL carryovers or carrybacks from other years. Enter
the total amount of your NOL deduction for losses from
other years.
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Worksheet 1. Figuring Your NOL Keep for Your Records
1. For individuals, subtract your standard deduction or itemized deductions from your AGI and enter it
here. For estates and trusts, enter taxable income increased by the total of the charitable deduction,
income distribution deduction, and exemption amount ..................................... 1.
2. Nonbusiness capital losses before limitation. Enter as a positive
number ....................................................... 2.
3. Nonbusiness capital gains (without regard to any section 1202
exclusion) ..................................................... 3.
4. If line 2 is more than line 3, enter the difference. Otherwise, enter -0- .....
4.
5. If line 3 is more than line 2, enter the difference.
Otherwise, enter -0- ......................... 5.
6. Nonbusiness deductions (see Nonbusiness deductions under How To
Figure an NOL, earlier). Enter as a positive number ................... 6.
7. Nonbusiness income other than capital gains (see
Nonbusiness income under How To Figure an
NOL, earlier) ............................... 7.
8. Add lines 5 and 7 ...............................................
8.
9. If line 6 is more than line 8, enter the difference. Otherwise, enter -0- .........................
9.
10. If line 8 is more than line 6, enter the difference.
Otherwise, enter -0-. But don’t enter more than
line 5 ..................................... 10.
11. Business capital losses before limitation. Enter as a positive number .....
11.
12. Business capital gains (without regard to any
section 1202 exclusion) ...................... 12.
13. Add lines 10 and 12 .............................................
13.
14. Subtract line 13 from line 11. If zero or less, enter -0- ..................
14.
15. Add lines 4 and 14 ..............................................
15.
16. Enter the loss, if any, from line 16 of your 2023 Schedule D (Form 1040).
Estates and trusts, enter the loss, if any, from line 19, column (3), of
Schedule D (Form 1041). Enter as a positive number. If you don’t have a
loss on that line (and don’t have a section 1202 exclusion), skip lines 16
through 21 and enter on line 22 the amount from line 15 ............... 16.
17. Section 1202 exclusion. Enter as a positive number ........................................
17.
18. Subtract line 17 from line 16. If zero or less, enter -0- ..................
18.
19. Enter the loss, if any, from line 21 of your 2023 Schedule D (Form 1040).
Estates and trusts, enter the loss, if any, from line 20 of Schedule D (Form
1041). Enter as a positive number. ................................. 19.
20. If line 18 is more than line 19, enter the difference. Otherwise,
enter -0- ....................................................... 20.
21. If line 19 is more than line 18, enter the difference. Otherwise, enter -0- ........................
21.
22. Subtract line 20 from line 15. If zero or less, enter -0- .......................................
22.
23. NOL deduction for losses from other years. Enter as a positive number ........................
23.
24. NOL. Combine lines 1, 9, 17, and 21 through 23. If the result is less than zero, enter it here.
If the result is zero or more, you don’t have an NOL .................................... 24.
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Worksheet 1. Figuring Your NOL
Example
The following example describes how to figure an NOL.
Example. You are in the retail record business. You
are single and have the following income and deductions
on your Form 1040 for 2023.
INCOME
Wages from part-time job .................... $1,225
Interest on savings ........................ 425
Net long-term capital gain on sale of real estate used in
business ..............................
2,000
Your total income $3,650
DEDUCTIONS
Net loss from business (gross income of $67,000
minus expenses of $72,000) ................. $5,000
Net short-term capital loss
on sale of stock ......................... 1,000
Standard deduction ...................... 13,850
Your total deductions $19,850
Your deductions exceed your income by $16,200
($19,850 − $3,650). However, to figure whether you have
an NOL, certain deductions are not allowed. You use
Worksheet 1 to figure your NOL.
The following items are not allowed on Worksheet 1.
Nonbusiness net short-term capital loss ............ $1,000
Nonbusiness deductions
(standard deduction, $13,850) minus
nonbusiness income (interest, $425) ..............
13,425
Total adjustments to net loss $14,425
Therefore, your NOL for 2023 is figured as follows.
Your total 2023 income .................... $3,650
Less:
Your original 2023 total deductions .. $19,850
Reduced by the disallowed items ... − 14,425 − 5,425
Your NOL for 2023 $1,775
When To Use an NOL
If you have an NOL for a tax year ending in 2023, only the
farming loss portion, if any, can be carried back.
NOL year. This is the year in which the NOL occurred.
Exception to the No Carryback Rule. Farming losses,
defined next, qualify for a 2-year carryback period. Only
the farming loss portion of an NOL can be carried back 2
years. The 80% limitation rule does not apply to a carry-
back period before 2021.
Farming business. A farming business is a trade or
business involving cultivation of land or the raising or har-
vesting of any agricultural or horticultural commodity. A
farming business can include operating a nursery or sod
farm or raising or harvesting most ornamental trees or
trees bearing fruit, nuts, or other crops. The raising, shear-
ing, feeding, caring for, training, and management of ani-
mals is also considered a farming business.
A farming business does not include contract harvest-
ing of an agricultural or horticultural commodity grown or
raised by someone else. It also does not include a busi-
ness in which you merely buy or sell plants or animals
grown or raised entirely by someone else.
Farming loss. A farming loss is the smaller of:
•
The amount that would be the NOL for the tax year if
only income and deductions from farming businesses
(as defined in section 263A(e)(4)) were taken into ac-
count, or
•
The NOL for the tax year.
Annual losses limited for 2023. Excess business los-
ses for noncorporate taxpayers are limited for tax years
beginning after 2020 and ending before 2029. Generally,
any disallowed loss is treated as an NOL carryover to later
years. Also, excess business losses are now computed
without regard to any deduction allowed under IRC sec-
tion 172 or 199A and without regard to any deductions,
gross income, or gains attributable to any trade or busi-
ness of performing services as an employee. You can’t de-
duct net losses in excess of a threshold amount in the cur-
rent year.
For 2023, excess means total (modified) business de-
ductions over the sum of total gross business income plus
$289,000 ($578,000 for joint returns). The excess is trea-
ted as an NOL to be carried forward. Further, when carry-
forwards can be used, they can only offset 80% of taxable
income in future years. See Excess Business Loss, later.
Waiving the Carryback Period
You can choose not to carry back your farming NOL. If you
make this choice, then you can carry your NOL forward in-
definitely until it is fully absorbed.
To make this choice, attach a statement to your original
return filed by the due date (including extensions) for the
NOL year. This statement must show that you are choos-
ing to waive the carryback period under section 172(b).
If you filed your original return on time but did not file
the statement with it, you can make this choice on an
amended return filed within 6 months of the due date of
the return (excluding extensions). Attach a statement to
your amended return, and write “Filed pursuant to section
301.9100-2” at the top of the statement.
Once you choose to waive the carryback period, it is
generally irrevocable. The election must be made by the
due date of the return, including extensions.
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If you do not file this statement on time, you can-
not waive the carryback period.
How To Carry an NOL Back or
Forward
If you choose to carry back a farming loss, you must first
carry the farming loss to the earliest year in the 2-year car-
ryback period. If the farming loss is not used up, you can
carry the rest to the next earliest carryback year, and then
on to carryover years after the loss year, and so on.
If you waive the carryback period or do not use up all of
the farming loss in the carryback period, you will have an
NOL that can be carried forward indefinitely until used up.
This NOL will be equal to the sum of what remains of the
farming loss, plus any nonfarm NOL, plus any excess
business loss for the NOL year. See Excess Business
Loss, later. Start by carrying the NOL to the first tax year
after the NOL year. If you do not use it up, carry the un-
used part to the next year. Continue to carry any unused
part of the NOL forward until the NOL is used up.
For nonfarming businesses, since you can’t carry the
NOL to an earlier year, your NOL deduction for tax years
beginning after December 31, 2020, cannot exceed the
sum of:
1. The NOLs carried to the year from tax years begin-
ning before January 1, 2018; plus
2. The lesser of:
a. The NOLs carried to the year from tax years begin-
ning after December 31, 2017, or
b. 80% of the excess (if any) of taxable income compu-
ted without regard to deductions for NOLs, or Qualified
Business Income (QBI), or section 250 deductions,
over the NOLs carried to the year from tax years be-
ginning before January 1, 2018.
Only NOLs arising after 2017 and carried forward to a
year after 2020 are subject to the 80%-of-taxable-income
limit. The total amount of any NOL deduction for 2021 or
thereafter that is attributable to NOLs from tax years after
2017 can’t exceed 80% of taxable income without regard
to the NOL deduction or sections 199A or 250.
Example. You started your farming business as a sole
proprietor in 2023 and had a $42,000 NOL for the year. No
part of this NOL is from another business activity. There
are no NOL carryovers or carrybacks to 2021 and 2022
other than the 2023 NOL.
Year Carryback/Carryover Unused Loss
2021 ........ $42,000 $40,000
2022 ........ $40,000 $0
2023 (NOL year) ...
CAUTION
!
How To Claim
an NOL Deduction
If you have not already carried the NOL to an earlier year,
your NOL deduction for tax years beginning after Decem-
ber 31, 2020, cannot exceed the sum of:
1. The NOLs carried to the year from tax years begin-
ning before January 1, 2018; plus
2. The lesser of:
a. The NOLs carried to the year from tax years begin-
ning after December 31, 2017, or
b. 80% of the excess (if any) of taxable income compu-
ted without regard to deductions for NOLs, or Qualified
Business Income (QBI), or section 250 deductions,
over the NOLs carried to the year from tax years be-
ginning before January 1, 2018.
If you carried the NOL to an earlier year, your NOL de-
duction is the carried over NOL minus the NOL amount
you used in the earlier year or years. If you carry more
than one NOL to the same year, your NOL deduction is
the total of these carrybacks and carryovers.
NOL resulting in no taxable income. If your NOL is
more than the taxable income of the year you carry it to
(figured before deducting the NOL), you will generally
have an NOL carryover to the next year. See How To Fig-
ure an NOL Carryover, later, to determine how much NOL
you have used and how much you carry to the next year.
Deducting a Carryback
If you carry back your NOL, you can use either Form 1045
or Form 1040-X. You can get your refund faster by using
Form 1045, but you have a shorter time to file it. You can
use Form 1045 to apply an NOL to all carryback years. If
you use Form 1040-X, you must use a separate Form
1040-X for each carryback year to which you apply the
NOL.
Estates and trusts that do not file Form 1045 must file
an amended Form 1041 (instead of Form 1040-X) for
each carryback year to which NOLs are applied. Use a
copy of the appropriate year's Form 1041, check the “Net
operating loss carryback” box, and follow the Form 1041
instructions for amended returns. Include the NOL deduc-
tion with other deductions not subject to the 2% limit
(line 15a). Also, see the special procedures for filing an
amended return due to an NOL carryback, explained un-
der Form 1040-X, later.
Carrying back an NOL to an earlier tax year may
create an alternative minimum tax (AMT) liability
for that earlier year. This may be true even if there
was no AMT liability on the tax return filed for that earlier
year.
CAUTION
!
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Form 1045. You can apply for a quick refund by filing
Form 1045. This form results in a tentative adjustment of
tax in the carryback year.
If the IRS refunds or credits an amount to you from
Form 1045 and later determines that the refund or credit is
too much, the IRS may assess and collect the excess im-
mediately.
Generally, you must file Form 1045 on or after the date
you file your tax return for the NOL year, but not later than
1 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 filed if postmarked on the next
business day. For example, if you are a calendar year tax-
payer with a carryback from 2023 to 2021, you must file
Form 1045 on or after the date you file your tax return for
2023, but no later than December 31, 2024.
If you were affected by a federally declared disas-
ter, you may have additional time to file your Form
1045. For more information, go to IRS.gov/
DisasterTaxRelief.
Form 1040-X. If you do not file Form 1045, you can file
Form 1040-X to get a refund of tax because of an NOL
carryback. Generally, file Form 1040-X for the carryback
year within 3 years after the due date, including exten-
sions, for filing the return for the NOL year. For example, if
you are a calendar year taxpayer, you must generally file a
claim for refund because of an NOL carryback from 2020
by April 15, 2024 (3 years after the due date for the NOL
return).
Filing Form 1040-X does not extend the carry-
back period. See When To Use an NOL, earlier.
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.
Refiguring your tax. To refigure your total tax liability for
a carryback year, first refigure your AGI for that year. (On
Form 1045, use lines 10 and 11 and the “After carryback”
column for the applicable carryback year.) Use your AGI
after applying the NOL deduction to refigure income or de-
duction items that are based on, or limited to, a percent-
age of your AGI. Refigure the following items.
1. The special allowance for passive activity losses from
rental real estate activities.
2. Taxable social security benefits.
3. IRA deductions.
4. Excludable savings bond interest.
5. Excludable employer-provided adoption benefits.
6. The student loan interest deduction.
7. The tuition and fees deduction.
If more than one of these items apply, refigure them in
the order listed above, using your AGI after applying the
NOL deduction and any previous item. (If you are using
Form 1045, enter your NOL deduction on line 10. On
CAUTION
!
CAUTION
!
line 11, using the “After carryback” column, enter your AGI
refigured after applying the NOL deduction and after refi-
guring any above items.)
Next, refigure your taxable income. (On Form 1045, use
lines 12 through 15 and the “After carryback” column.)
Use your refigured AGI (Form 1045, line 11, using the “Af-
ter carryback” column) to refigure certain deductions and
other items that are based on or limited to a percentage of
your AGI. Refigure the following items.
•
The itemized deduction for medical expenses.
•
The itemized deduction for qualified mortgage insur-
ance premiums.
•
The itemized deduction for casualty losses.
•
Miscellaneous itemized deductions subject to the 2%
limit.
•
The overall limit on itemized deductions.
•
The phaseout of the deduction for exemptions.
Note. For tax years after 2017, the TCJA eliminated
the itemized deduction for miscellaneous itemized deduc-
tions subject to the 2% limit, the overall limit on itemized
deductions, and the deduction for exemptions.
Do not refigure the itemized deduction for charita-
ble contributions, even if you refigure your AGI.
Also, since you do not decrease your charitable
contributions, do not increase your charitable contribu-
tions carryover.
Finally, use your refigured taxable income (Form 1045,
line 15, using the “After carryback” column) to refigure
your total tax liability. Refigure your income tax, your alter-
native minimum tax, and any credits that are based on or
limited by your AGI, modified AGI (MAGI), or tax liability.
(On Form 1045, use lines 16 through 30, and the “After
carryback” column.) The earned income credit, for exam-
ple, may be affected by changes to AGI or the amount of
tax (or both) and, therefore, must be refigured. If you be-
come eligible for a credit because of the carryback, com-
plete the form for that specific credit (such as the EIC
Worksheet) for that year.
While it is necessary to refigure your income tax, alter-
native minimum tax, and credits, do not refigure your
self-employment tax and Additional Medicare Tax. For in-
formation about refiguring your net investment income tax
and credits, see the Instructions for Form 1045.
Deducting a Carryforward
If you carry forward your NOL to a tax year after the NOL
year, list your NOL deduction as a negative figure on
Schedule 1 (Form 1040), line 8a, for 2023, for the year to
which the NOL is carried. Estates and trusts, include an
NOL deduction on Form 1041, line 15b, for 2023.
You must attach a statement that shows all the impor-
tant facts about the NOL. Your statement should include a
computation showing how you figured the NOL deduction.
If you deduct more than one NOL in the same year, your
statement must cover each of them.
CAUTION
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Change in Marital Status
If you and your spouse were not married to each other in
all years involved in figuring NOL carrybacks and carry-
overs, only the spouse who had the loss can take the NOL
deduction. If you file a joint return, the NOL deduction is
limited to the income of that spouse.
For example, if your marital status changes because of
death or divorce, and in a later year you have an NOL, you
can carry back that loss only to the part of the income re-
ported on the joint return (filed with your former spouse)
that was related to your taxable income. After you deduct
the NOL in the carryback year, the joint rates apply to the
resulting taxable income.
Refund limit. If you are not married in the NOL year (or
are married to a different spouse), and in the carryback
year you were married and filed a joint return, your refund
for the overpaid joint tax may be limited. You can claim a
refund for the difference between your share of the refig-
ured tax and your contribution toward the tax paid on the
joint return. The refund cannot be more than the joint over-
payment. Attach a statement showing how you figured
your refund.
Figuring your share of a joint tax liability. There
are five steps for figuring your share of the refigured joint
tax liability.
1. Figure your total tax as though you had filed as mar-
ried filing separately.
2. Figure your spouse's total tax as though your spouse
also had filed as married filing separately.
3. Add the amounts in (1) and (2).
4. Divide the amount in (1) by the amount in (3).
5. Multiply the refigured tax on your joint return by the
amount figured in (4). This is your share of the joint
tax liability.
Figuring your contribution toward tax paid. Unless
you have an agreement or clear evidence of each spou-
se's contributions toward the payment of the joint tax liabil-
ity, figure your contribution by adding the tax withheld on
your wages and your share of joint estimated tax pay-
ments or tax paid with the return. If the original return for
the carryback year resulted in an overpayment, reduce
your contribution by your share of the tax refund. Figure
your share of a joint payment or refund by the same
method used in figuring your share of the joint tax liability.
Use your taxable income as originally reported on the joint
return in steps 1 and 2 above, and substitute the joint pay-
ment or refund for the refigured joint tax in step 5.
Change in Filing Status
If you and your spouse were married and filed a joint re-
turn for each year involved in figuring NOL carrybacks and
carryovers, figure the NOL deduction on a joint return as
you would for an individual. However, treat the NOL de-
duction as a joint NOL.
If you and your spouse were married and filed separate
returns for each year involved in figuring NOL carrybacks
and carryovers, the spouse who sustained the loss may
take the NOL deduction on a separate return.
Special rules apply for figuring the NOL carrybacks and
carryovers of married people whose filing status changes
for any tax year involved in figuring an NOL carryback or
carryover.
Separate to joint return. If you and your spouse file a
joint return for the tax year, and were married but filed sep-
arate returns for any of the tax years involved in figuring
the NOL carryback or carryover, treat the separate carry-
back or carryover as a joint carryback or carryover.
Joint to separate returns. If you and your spouse file
separate returns for a tax year, but filed a joint return for
any or all of the tax years involved in figuring the NOL car-
ryover, figure each of your carryovers separately, by sepa-
rating the NOL portion for each spouse from within the
joint return.
Because the joint NOL is being carried to a tax year in-
volving separate returns, the separate NOL of each
spouse must be figured.
Joint return in NOL year. Figure each spouse's
share of the joint NOL through the following steps.
1. Figure each spouse's NOL as if he or she filed a sep-
arate return. See How To Figure an NOL, earlier. If
only one spouse has an NOL, stop here. All of the
joint NOL is that spouse's NOL.
2. If both spouses have an NOL, multiply the joint NOL
by a fraction, the numerator of which is spouse A's
NOL figured in (1) and the denominator of which is the
total of the spouses' NOLs figured in (1). The result is
spouse A's share of the joint NOL. The rest of the joint
NOL is spouse B's share.
Example 1. Mark and Nancy are married and file a
joint return for 2023. They have an NOL of $5,000 from a
farming business. They carry the NOL back to 2021, a
year in which Mark and Nancy filed separate returns. Fig-
ured separately, Nancy's 2023 deductions were more than
her income, and Mark's income was more than his deduc-
tions. Mark does not have any NOL to carry back. Nancy
can carry back the entire $5,000 NOL to her 2021 sepa-
rate return.
Example 2. Assume the same facts as in Example 1,
except that both Mark and Nancy had deductions in 2023
that were more than their income. Figured separately, his
NOL is $1,800 and her NOL is $3,000. The sum of their
separate NOLs ($4,800) is less than their $5,000 joint
NOL because his deductions included a $200 net capital
loss that is not allowed in figuring his separate NOL. The
loss is allowed in figuring their joint NOL because it was
offset by Nancy's capital gains. Mark's share of their
$5,000 joint NOL is $1,875 ($5,000 × $1,800/$4,800) and
Nancy's is $3,125 ($5,000 − $1,875).
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How To Figure an NOL
Carryover
If your NOL is more than your taxable income for the year
to which you carry it (figured before deducting the NOL),
you may have an NOL carryover. You must make certain
modifications to your taxable income to determine how
much NOL you will use up in that year and how much you
can carry over to the next tax year. Your carryover is the
excess of your NOL deduction over your modified taxable
income for the carryback or carryforward year. If your NOL
deduction includes more than one NOL, apply the NOLs
against your modified taxable income in the same order in
which you incurred them, starting with the earliest.
Modified taxable income. Your modified taxable income
is your taxable income figured with the following changes.
1. You cannot claim an NOL deduction for the NOL car-
ryover you are figuring or for any later NOL.
2. You cannot claim a deduction for capital losses in ex-
cess of your capital gains. Also, you must increase
your taxable income by the amount of any section
1202 exclusion.
3. You cannot claim a deduction for your exemptions for
yourself, your spouse, or your dependents.
4. You must figure any item affected by the amount of
your AGI after making the changes in (1), (2), and (3)
above, and certain other changes to your AGI that re-
sult from (1), (2), and (3). This includes income and
deduction items used to figure AGI (for example, IRA
deductions), as well as certain itemized deductions.
To figure a charitable contribution deduction, do not
include deductions for NOL carrybacks in the change
in (1) but do include deductions for NOL carryfor-
wards from tax years before the NOL year.
Your taxable income as modified cannot be less than
zero.
Form 1045, Schedule B. You can use Form 1045,
Schedule B, to figure your modified taxable income for
carryback years and your carryover from each of those
years. If your 2023 return includes an NOL deduction from
an NOL year before 2018 that reduced your taxable in-
come to zero (to less than zero, if an estate or trust), see
NOL Carryover From 2023 to 2024 below.
NOL Carryover From 2023 to
2024
If you had an NOL deduction carried forward from a year
before 2018 that resulted in your having taxable income
on your 2023 return of zero (or less than zero, if an estate
or trust), complete Worksheet 2, later. It will help you fig-
ure your NOL to carry to 2024. Keep the worksheet for
your records.
For NOL year 2023, complete Worksheet 3 to figure the
carryover from 2023. Keep the worksheet for your records.
Worksheet 2 Instructions
Use Worksheet 2 to figure your carryover to 2024 if you
had an NOL deduction from a year before 2018 that resul-
ted in your having taxable income on your 2023 return of
zero or less. If your taxable income is still positive after ap-
plication of the NOL deduction, there is no carryover to
2024.
At the top of the worksheet, enter the NOL year for
which you are figuring the carryover.
More than one NOL. If your 2023 NOL deduction in-
cludes amounts for more than 1 loss year, complete this
worksheet only for 1 loss year. To determine which year,
start with your earliest NOL and subtract each NOL sepa-
rately from your taxable income figured without the NOL
deduction. Complete this worksheet for the earliest NOL
that results in your having taxable income below zero. Your
NOL carryover to 2024 is the total of the amount on line 9
of the worksheet and all later NOL amounts.
Line 1. Enter as a positive number the NOL carryover
from the NOL year identified.
Line 2. Enter your taxable income without the NOL de-
duction for the year listed at the top of Worksheet 2, but
with the NOL deduction from any prior year.
Line 6. You must refigure the following income and de-
ductions based on AGI.
1. The special allowance for passive activity losses from
rental real estate activities.
2. Taxable social security benefits.
3. IRA deductions.
4. Excludable savings bond interest.
5. Excludable employer-provided adoption benefits.
6. The student loan interest deduction.
If none of these items apply to you, enter zero on line 6.
Otherwise, increase your AGI by the total of lines 3
through 5 and your NOL deduction for the NOL year en-
tered at the top of the worksheet and later years. Using
this increased AGI, refigure the items that apply, in the or-
der listed above. Your adjustment for each item is the dif-
ference between the refigured amount and the amount in-
cluded on your return. Combine the adjustments for
previous items with your AGI before refiguring the next
item. Keep a record of your computations.
Enter your total adjustments for the above items on
line 6.
Line 7. Enter zero if you claimed the standard deduction
and the amounts on lines 3 through 5 are zero. Otherwise,
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use lines 10 through 26 of the worksheet to figure the
amount to enter on this line. Complete only those sections
that apply to you.
Estates and trusts. Enter zero on line 7 if you did not
claim a casualty or theft loss. Otherwise, refigure these
deductions by substituting MAGI (see below) for AGI. Sub-
tract the refigured deductions from those claimed on the
return. Enter the result on line 7.
Modified adjusted gross income (MAGI). To refig-
ure the casualty and theft loss deduction of an estate or
trust, MAGI is the total of the following amounts.
•
The AGI amount you used to figure the deduction
claimed on the return.
•
The amounts from lines 3 through 5 of the worksheet.
•
The NOL deduction for the NOL year entered at the
top of the worksheet and for later years.
Line 10. Treat your NOL deduction for the NOL year en-
tered at the top of the worksheet and for later years as a
positive amount. Add it to your AGI. Enter the result on
line 10.
Lines 19 and 20. You may be entitled to a larger charita-
ble contributions deduction in determining modified taxa-
ble income for 2023 (line 19) than the charitable contribu-
tion deduction you were allowed in determining 2023
taxable income (line 18). Because of this, the amount you
enter on line 20 may be negative. To the extent that these
additional charitable contribution deductions decrease the
amount of NOL that is used in 2023, you must reduce your
charitable contribution carryover to 2024.
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Worksheet 2. Worksheet To Figure NOL Carryover From 2023 to 2024
(For an NOL Carryforward From a Year Before 2018 (When 2018 Through 2020 Are
Intervening Years))
Caution: Don’t use this worksheet for NOL carryforwards from 2018, 2019, or 2020.
For Use by Individuals, Estates, and Trusts (Keep for your records.)
See the Worksheet 2 Instructions, earlier.
NOL Year __________
USE YOUR 2023 FORM 1040, 1040-SR, 1040-NR, OR 1041 TO COMPLETE THIS WORKSHEET:
1. Enter as a positive number your NOL deduction for the NOL year entered above from Schedule 1 (Form
1040), line 8a; or Form 1041, line 15b ................................................ __________
2. Enter your taxable income without the NOL deduction for 2023. See instructions ................ __________
3. Enter as a positive number any net capital loss deduction ................................. __________
4. Enter as a positive number any gain excluded on the sale or exchange of qualified small business
stock ........................................................................ __________
5. Enter as a positive number any qualified business income deduction ......................... __________
6. Enter any adjustments to your adjusted gross income. See instructions ....................... __________
7. Enter any adjustments to your itemized deductions from line 26 below. See instructions ........... __________
8. Modified taxable income. Combine lines 2 through 7. Enter the result (but not less than zero) ...... __________
9. NOL carryover to 2024. Subtract line 8 from line 1. Enter the result (but not less than zero) here and
on Schedule 1 (Form 1040), line 8a (or line 15a on Form 1041 for other deductions) for 2024 ....... __________
ADJUSTMENTS TO ITEMIZED DEDUCTIONS (INDIVIDUALS ONLY):
10. Enter your adjusted gross income without the NOL deduction for the NOL year entered above or later
years. See instructions ........................................................... __________
11. Combine lines 3, 4, and 6 above .................................................... __________
12. Modified adjusted gross income. Combine lines 10 and 11 above ......................... __________
ADJUSTMENT TO MEDICAL EXPENSES:
13. Enter your medical expenses from Schedule A (Form 1040), line 4 ........................... __________
14. Enter your medical expenses from Schedule A (Form 1040), line 1 ........................... __________
15. Multiply line 12 above by 7.5% (0.075) ............................................... __________
16. Subtract line 15 from line 14. Enter the result (but not less than zero) ......................... __________
17. Subtract line 16 from line 13 ...................................................... __________
ADJUSTMENT TO CHARITABLE CONTRIBUTIONS:
18. Enter your charitable contributions deduction from Schedule A (Form 1040), line 14; or Schedule A
(Form 1040-NR), line 5 ........................................................... __________
19. Refigure your charitable contributions deduction using line 12 above as your adjusted gross income.
See instructions ................................................................ __________
20. Subtract line 19 from line 18 ....................................................... __________
ADJUSTMENT TO CASUALTY AND THEFT LOSSES:
21. Enter your casualty and theft losses from Form 4684, line 18 ............................... __________
22. Enter your casualty and theft losses from Form 4684, line 16 ............................... __________
23. Multiply line 12 above by 10% (0.10) ................................................ __________
24. Subtract line 23 from line 22. Enter the result (but not less than zero) ......................... __________
25. Subtract line 24 from line 21 ....................................................... __________
26. Combine lines 17, 20, and 25, and enter the result here and on line 7 ......................... __________
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Excess Business Loss
Noncorporate taxpayers may be subject to excess busi-
ness loss limitations. The at-risk limits and the passive ac-
tivity limits are applied before figuring the amount of any
excess business loss. An excess business loss is the
amount by which the total deductions attributable to all of
your trades or businesses exceed your total gross income
and gains attributable to those trades or businesses plus
$289,000 (or $578,000 in the case of a joint return). A
trade or business includes, but is not limited to, Sched-
ule C and Schedule F activities, and certain activities re-
ported on Schedule E. (In the case of a partnership or S
corporation, although the limitation is applied at the part-
ner or shareholder level, the trade or business determina-
tion is made at the entity’s level.) Business gains and los-
ses reported on Schedule D and Form 4797 are included
in the excess business loss calculation. Excess business
losses that are disallowed are treated as an NOL carry-
over to the following tax year. See Form 461 and its in-
structions for details. For application of these rules to
farmers, see also Pub. 225 and the Instructions for Sched-
ule F (Form 1040 or 1040-SR).
Example. For the year 2023, an unmarried taxpayer op-
erates a Schedule C business and incurs a loss of $1 mil-
lion. The taxpayer completes Form 461 and determines
that he has incurred an excess business loss of $738,000.
The taxpayer reports the excess business loss as a posi-
tive number on Schedule 1 (Form 1040 or 1040-SR),
line 8p – effectively offsetting part of the loss claimed on
Schedule C. This excess business loss of $738,000 will
be treated as an NOL carryover to 2024. The taxpayer
must then complete Worksheet 3 above to figure the total
NOL carryover from 2023 to 2024.
Worksheet 3 Instructions
Use Worksheet 3 to figure your carryover to 2024 if you
had an NOL deduction in 2023.
Line 1. Enter your NOL amount from Worksheet 1,
line 24.
How To Get Tax Help
If you have questions about a tax issue; need help prepar-
ing your tax return; or want to download free publications,
forms, or instructions, go to IRS.gov to find resources that
can help you right away.
Preparing and filing your tax return. After receiving all
your wage and earnings statements (Forms W-2, W-2G,
1099-R, 1099-MISC, 1099-NEC, etc.); unemployment
compensation statements (by mail or in a digital format) or
other government payment statements (Form 1099-G);
and interest, dividend, and retirement statements from
banks and investment firms (Forms 1099), you have sev-
eral options to choose from to prepare and file your tax re-
turn. You can prepare the tax return yourself, see if you
qualify for free tax preparation, or hire a tax professional to
prepare your return.
Free options for tax preparation. Your options for pre-
paring and filing your return online or in your local com-
munity, if you qualify, include the following.
•
Free File. This program lets you prepare and file your
federal individual income tax return for free using soft-
ware or Free File Fillable Forms. However, state tax
preparation may not be available through Free File. Go
to IRS.gov/FreeFile to see if you qualify for free online
federal tax preparation, e-filing, and direct deposit or
payment options.
•
VITA. The Volunteer Income Tax Assistance (VITA)
program offers free tax help to people with
low-to-moderate incomes, persons with disabilities,
and limited-English-speaking taxpayers who need
help preparing their own tax returns. Go to IRS.gov/
VITA, download the free IRS2Go app, or call
800-906-9887 for information on free tax return prepa-
ration.
•
TCE. The Tax Counseling for the Elderly (TCE) pro-
gram offers free tax help for all taxpayers, particularly
those who are 60 years of age and older. TCE volun-
teers specialize in answering questions about pen-
sions and retirement-related issues unique to seniors.
Go to IRS.gov/TCE or download the free IRS2Go app
for information on free tax return preparation.
Worksheet 3. Worksheet for NOL Carryover For 2023 to 2024 (For NOL Year 2023)
For Use by Individuals, Estates, and Trusts (Keep for you records.)
See the Worksheet 3 Instructions below.
Note. Use Worksheet 2 to figure your NOL carryover(s) for NOL years before 2018.
1. Enter the amount from Worksheet 1, line 24, if less than zero. Enter as a negative number. ........
1.
2. Portion of line 1 above that is a loss that was carried back and used. Enter as a positive
number ............................................................................ 2.
3. Enter the Excess business loss from Form 461, line 16. Enter as a negative number .............
3.
4. Combine lines 1 through 3. This is your NOL to carry over to 2024 ............................
4.
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•
MilTax. Members of the U.S. Armed Forces and quali-
fied veterans may use MilTax, a free tax service of-
fered by the Department of Defense through Military
OneSource. For more information, go to
MilitaryOneSource (MilitaryOneSource.mil/MilTax).
Also, the IRS offers Free Fillable Forms, which can
be completed online and then e-filed regardless of in-
come.
Using online tools to help prepare your return. Go to
IRS.gov/Tools for the following.
•
The Earned Income Tax Credit Assistant (IRS.gov/
EITCAssistant) determines if you’re eligible for the
earned income credit (EIC).
•
The Online EIN Application (IRS.gov/EIN) helps you
get an employer identification number (EIN) at no
cost.
•
The Tax Withholding Estimator (IRS.gov/W4App)
makes it easier for you to estimate the federal income
tax you want your employer to withhold from your pay-
check. This is tax withholding. See how your withhold-
ing affects your refund, take-home pay, or tax due.
•
The First-Time Homebuyer Credit Account Look-up
(IRS.gov/HomeBuyer) tool provides information on
your repayments and account balance.
•
The Sales Tax Deduction Calculator (IRS.gov/
SalesTax) figures the amount you can claim if you
itemize deductions on Schedule A (Form 1040).
Getting answers to your tax questions. On
IRS.gov, you can get up-to-date information on
current events and changes in tax law.
•
IRS.gov/Help: A variety of tools to help you get an-
swers to some of the most common tax questions.
•
IRS.gov/ITA: The Interactive Tax Assistant, a tool that
will ask you questions and, based on your input, pro-
vide answers on a number of tax topics.
•
IRS.gov/Forms: Find forms, instructions, and publica-
tions. You will find details on the most recent tax
changes and interactive links to help you find answers
to your questions.
•
You may also be able to access tax information in your
e-filing software.
Need someone to prepare your tax return? There are
various types of tax return preparers, including enrolled
agents, certified public accountants (CPAs), accountants,
and many others who don’t have professional credentials.
If you choose to have someone prepare your tax return,
choose that preparer wisely. A paid tax preparer is:
•
Primarily responsible for the overall substantive accu-
racy of your return,
•
Required to sign the return, and
•
Required to include their preparer tax identification
number (PTIN).
Although the tax preparer always signs the return,
you're ultimately responsible for providing all the
information required for the preparer to accurately
prepare your return and for the accuracy of every item re-
ported on the return. Anyone paid to prepare tax returns
for others should have a thorough understanding of tax
matters. For more information on how to choose a tax pre-
parer, go to Tips for Choosing a Tax Preparer on IRS.gov.
Employers can register to use Business Services On-
line. The Social Security Administration (SSA) offers on-
line service at SSA.gov/employer for fast, free, and secure
W-2 filing options to CPAs, accountants, enrolled agents,
and individuals who process Form W-2, Wage and Tax
Statement, and Form W-2c, Corrected Wage and Tax
Statement.
IRS social media. Go to IRS.gov/SocialMedia to see the
various social media tools the IRS uses to share the latest
information on tax changes, scam alerts, initiatives, prod-
ucts, and services. At the IRS, privacy and security are our
highest priority. We use these tools to share public infor-
mation with you. Don’t post your social security number
(SSN) or other confidential information on social media
sites. Always protect your identity when using any social
networking site.
The following IRS YouTube channels provide short, in-
formative videos on various tax-related topics in English,
Spanish, and ASL.
•
Youtube.com/irsvideos.
•
Youtube.com/irsvideosmultilingua.
•
Youtube.com/irsvideosASL.
Watching IRS videos. The IRS Video portal
(IRSVideos.gov) contains video and audio presentations
for individuals, small businesses, and tax professionals.
Online tax information in other languages. You can
find information on IRS.gov/MyLanguage if English isn’t
your native language.
Free Over-the-Phone Interpreter (OPI) Service. The
IRS is committed to serving taxpayers with limited-English
proficiency (LEP) by offering OPI services. The OPI Serv-
ice is a federally funded program and is available at Tax-
payer Assistance Centers (TACs), most IRS offices, and
every VITA/TCE tax return site. The OPI Service is acces-
sible in more than 350 languages.
Accessibility Helpline available for taxpayers with
disabilities. Taxpayers who need information about ac-
cessibility services can call 833-690-0598. The Accessi-
bility Helpline can answer questions related to current and
future accessibility products and services available in al-
ternative media formats (for example, braille, large print,
audio, etc.). The Accessibility Helpline does not have ac-
cess to your IRS account. For help with tax law, refunds, or
account-related issues, go to IRS.gov/LetUsHelp.
CAUTION
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Note. Form 9000, Alternative Media Preference, or
Form 9000(SP) allows you to elect to receive certain types
of written correspondence in the following formats.
•
Standard Print.
•
Large Print.
•
Braille.
•
Audio (MP3).
•
Plain Text File (TXT).
•
Braille Ready File (BRF).
Disasters. Go to IRS.gov/DisasterRelief to review the
available disaster tax relief.
Getting tax forms and publications. Go to IRS.gov/
Forms to view, download, or print all the forms, instruc-
tions, and publications you may need. Or, you can go to
IRS.gov/OrderForms to place an order.
Getting tax publications and instructions in eBook
format. Download and view most tax publications and
instructions (including the Instructions for Form 1040) on
mobile devices as eBooks at IRS.gov/eBooks.
IRS eBooks have been tested using Apple's iBooks for
iPad. Our eBooks haven’t been tested on other dedicated
eBook readers, and eBook functionality may not operate
as intended.
Access your online account (individual taxpayers
only). Go to IRS.gov/Account to securely access infor-
mation about your federal tax account.
•
View the amount you owe and a breakdown by tax
year.
•
See payment plan details or apply for a new payment
plan.
•
Make a payment or view 5 years of payment history
and any pending or scheduled payments.
•
Access your tax records, including key data from your
most recent tax return, and transcripts.
•
View digital copies of select notices from the IRS.
•
Approve or reject authorization requests from tax pro-
fessionals.
•
View your address on file or manage your communica-
tion preferences.
Get a transcript of your return. With an online ac-
count, you can access a variety of information to help you
during the filing season. You can get a transcript, review
your most recently filed tax return, and get your adjusted
gross income. Create or access your online account at
IRS.gov/Account.
Tax Pro Account. This tool lets your tax professional
submit an authorization request to access your individual
taxpayer IRS online account. For more information, go to
IRS.gov/TaxProAccount.
Using direct deposit. The safest and easiest way to re-
ceive a tax refund is to e-file and choose direct deposit,
which securely and electronically transfers your refund di-
rectly into your financial account. Direct deposit also
avoids the possibility that your check could be lost, stolen,
destroyed, or returned undeliverable to the IRS. Eight in
10 taxpayers use direct deposit to receive their refunds. If
you don’t have a bank account, go to IRS.gov/
DirectDeposit for more information on where to find a bank
or credit union that can open an account online.
Reporting and resolving your tax-related identity
theft issues.
•
Tax-related identity theft happens when someone
steals your personal information to commit tax fraud.
Your taxes can be affected if your SSN is used to file a
fraudulent return or to claim a refund or credit.
•
The IRS doesn’t initiate contact with taxpayers by
email, text messages (including shortened links), tele-
phone calls, or social media channels to request or
verify personal or financial information. This includes
requests for personal identification numbers (PINs),
passwords, or similar information for credit cards,
banks, or other financial accounts.
•
Go to IRS.gov/IdentityTheft, the IRS Identity Theft
Central webpage, for information on identity theft and
data security protection for taxpayers, tax professio-
nals, and businesses. If your SSN has been lost or
stolen or you suspect you’re a victim of tax-related
identity theft, you can learn what steps you should
take.
•
Get an Identity Protection PIN (IP PIN). IP PINs are
six-digit numbers assigned to taxpayers to help pre-
vent the misuse of their SSNs on fraudulent federal in-
come tax returns. When you have an IP PIN, it pre-
vents someone else from filing a tax return with your
SSN. To learn more, go to IRS.gov/IPPIN.
Ways to check on the status of your refund.
•
Go to IRS.gov/Refunds.
•
Download the official IRS2Go app to your mobile de-
vice to check your refund status.
•
Call the automated refund hotline at 800-829-1954.
The IRS can’t issue refunds before mid-February
for returns that claimed the EIC or the additional
child tax credit (ACTC). This applies to the entire
refund, not just the portion associated with these credits.
Making a tax payment. Payments of U.S. tax must be
remitted to the IRS in U.S. dollars. Digital assets are not
accepted. Go to IRS.gov/Payments for information on how
to make a payment using any of the following options.
•
IRS Direct Pay: Pay your individual tax bill or estimated
tax payment directly from your checking or savings ac-
count at no cost to you.
•
Debit Card, Credit Card, or Digital Wallet: Choose an
approved payment processor to pay online or by
phone.
CAUTION
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•
Electronic Funds Withdrawal: Schedule a payment
when filing your federal taxes using tax return prepara-
tion software or through a tax professional.
•
Electronic Federal Tax Payment System: Best option
for businesses. Enrollment is required.
•
Check or Money Order: Mail your payment to the ad-
dress listed on the notice or instructions.
•
Cash: You may be able to pay your taxes with cash at
a participating retail store.
•
Same-Day Wire: You may be able to do same-day
wire from your financial institution. Contact your finan-
cial institution for availability, cost, and time frames.
Note. The IRS uses the latest encryption technology
to ensure that the electronic payments you make online,
by phone, or from a mobile device using the IRS2Go app
are safe and secure. Paying electronically is quick, easy,
and faster than mailing in a check or money order.
What if I can’t pay now? Go to IRS.gov/Payments for
more information about your options.
•
Apply for an online payment agreement (IRS.gov/
OPA) to meet your tax obligation in monthly install-
ments if you can’t pay your taxes in full today. Once
you complete the online process, you will receive im-
mediate notification of whether your agreement has
been approved.
•
Use the Offer in Compromise Pre-Qualifier to see if
you can settle your tax debt for less than the full
amount you owe. For more information on the Offer in
Compromise program, go to IRS.gov/OIC.
Filing an amended return. Go to IRS.gov/Form1040X
for information and updates.
Checking the status of your amended return. Go to
IRS.gov/WMAR to track the status of Form 1040-X amen-
ded returns.
It can take up to 3 weeks from the date you filed
your amended return for it to show up in our sys-
tem, and processing it can take up to 16 weeks.
Understanding an IRS notice or letter you’ve re-
ceived. Go to IRS.gov/Notices to find additional informa-
tion about responding to an IRS notice or letter.
Responding to an IRS notice or letter. You can now
upload responses to all notices and letters using the
Document Upload Tool. For notices that require additional
action, taxpayers will be redirected appropriately on
IRS.gov to take further action. To learn more about the
tool, go to IRS.gov/Upload.
Note. You can use Schedule LEP (Form 1040), Re-
quest for Change in Language Preference, to state a pref-
erence to receive notices, letters, or other written commu-
nications from the IRS in an alternative language. You may
not immediately receive written communications in the re-
quested language. The IRS’s commitment to LEP
CAUTION
!
taxpayers is part of a multi-year timeline that began pro-
viding translations in 2023. You will continue to receive
communications, including notices and letters, in English
until they are translated to your preferred language.
Contacting your local TAC. Keep in mind, many ques-
tions can be answered on IRS.gov without visiting a TAC.
Go to IRS.gov/LetUsHelp for the topics people ask about
most. If you still need help, TACs provide tax help when a
tax issue can’t be handled online or by phone. All TACs
now provide service by appointment, so you’ll know in ad-
vance that you can get the service you need without long
wait times. Before you visit, go to IRS.gov/TACLocator to
find the nearest TAC and to check hours, available serv-
ices, and appointment options. Or, on the IRS2Go app,
under the Stay Connected tab, choose the Contact Us op-
tion and click on “Local Offices.”
The Taxpayer Advocate Service (TAS)
Is Here To Help You
What Is TAS?
TAS is an independent organization within the IRS that
helps taxpayers and protects taxpayer rights. TAS strives
to ensure that every taxpayer is treated fairly and that you
know and understand your rights under the Taxpayer Bill
of Rights.
How Can You Learn About Your Taxpayer
Rights?
The Taxpayer Bill of Rights describes 10 basic rights that
all taxpayers have when dealing with the IRS. Go to
TaxpayerAdvocate.IRS.gov to help you understand what
these rights mean to you and how they apply. These are
your rights. Know them. Use them.
What Can TAS Do for You?
TAS can help you resolve problems that you can’t resolve
with the IRS. And their service is free. If you qualify for
their assistance, you will be assigned to one advocate
who will work with you throughout the process and will do
everything possible to resolve your issue. TAS can help
you if:
•
Your problem is causing financial difficulty for you,
your family, or your business;
•
You face (or your business is facing) an immediate
threat of adverse action; or
•
You’ve tried repeatedly to contact the IRS but no one
has responded, or the IRS hasn’t responded by the
date promised.
How Can You Reach TAS?
TAS has offices in every state, the District of Columbia,
and Puerto Rico. To find your advocate’s number:
•
Go to TaxpayerAdvocate.IRS.gov/Contact-Us;
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•
Download Pub. 1546, The Taxpayer Advocate Service
Is Your Voice at the IRS, available at IRS.gov/pub/irs-
pdf/p1546.pdf;
•
Call the IRS toll free at 800-TAX-FORM
(800-829-3676) to order a copy of Pub. 1546;
•
Check your local directory; or
•
Call TAS toll free at 877-777-4778.
How Else Does TAS Help Taxpayers?
TAS works to resolve large-scale problems that affect
many taxpayers. If you know of one of these broad issues,
report it to TAS at IRS.gov/SAMS. Be sure to not include
any personal taxpayer information.
Low Income Taxpayer Clinics (LITCs)
LITCs are independent from the IRS and TAS. LITCs rep-
resent individuals whose income is below a certain level
and who need to resolve tax problems with the IRS. LITCs
can represent taxpayers in audits, appeals, and tax collec-
tion disputes before the IRS and in court. In addition,
LITCs can provide information about taxpayer rights and
responsibilities in different languages for individuals who
speak English as a second language. Services are offered
for free or a small fee. For more information or to find an
LITC near you, go to the LITC page at
TaxpayerAdvocate.IRS.gov/LITC or see IRS Pub. 4134,
Low Income Taxpayer Clinic List, at IRS.gov/pub/irs-pdf/
p4134.pdf.
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To help us develop a more useful index, please let us know if you have ideas for index entries.
See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
Index
A
Assistance (See Tax help)
C
Carryback period 6
Carryback, waiving 6
Carryforward period 6
Carryover from 2023 to 2024:
Estates and trusts 11
Claiming an NOL deduction 7
D
Deducting a carryback 7
Deducting a carryforward 8
E
Excess business loss 13
F
Figuring an NOL:
Capital losses 4
Carryover 10
NOLs from other years 4
Nonbusiness deductions 3
Nonbusiness income 3
Worksheet 1. Figuring Your NOL 3
Filing status, change in 9
Form 1045, Schedule B 10
Forms and schedules:
Form 1040X 8
Form 1045 8
Form 1045, Schedule B 10
Future developments 1
H
How to carry an NOL back or
forward 7
How to figure an NOL 3
M
Marital status, change in 9
Missing children, photographs of 2
Modified taxable income 10
N
NOL Before 2018, Carryover to
2024:
Worksheet 2 instructions 10
NOL in 2023, Carryover to 2024:
Worksheet 3 Instructions 13
NOL year 2, 6
P
Publications (See Tax help)
R
Refiguring tax 8
Reminders 1
S
Steps in figuring NOL 2
T
Tax help 13
W
Waiving the carryback period 6
When to use an NOL 6
Worksheet 2:
Carryover from 2023 to 2024 for
NOL Year Before 2018 12
18 Publication 536 (2023)
