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Irs 1040

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Irs 1040

Irs 1040 Publication 536 - Main Content Table of Contents NOL Steps How To Figure an NOLNonbusiness deductions (line 6). Irs 1040 Nonbusiness income (line 7). Irs 1040 Nonbusiness capital losses. Irs 1040 Business capital losses. Irs 1040 Illustrated Form 1045, Schedule A When To Use an NOLExceptions to 2-Year Carryback Rule Waiving the Carryback Period How To Carry an NOL Back or Forward How To Claim an NOL DeductionDeducting a Carryback Deducting a Carryforward Change in Marital Status Change in Filing Status Illustrated Form 1045 How To Figure an NOL CarryoverIllustrated Form 1045, Schedule B NOL Carryover From 2013 to 2014Worksheet Instructions How To Get Tax HelpLow Income Taxpayer Clinics NOL Steps Follow Steps 1 through 5 to figure and use your NOL. Irs 1040 Step 1. Irs 1040   Complete your tax return for the year. Irs 1040 You may have an NOL if a negative figure appears on the line below: Individuals — Form 1040, line 41, or Form 1040NR, line 39. Irs 1040 Estates and trusts — Form 1041, line 22. Irs 1040   If the amount on that line is not negative, stop here — you do not have an NOL. Irs 1040 Step 2. Irs 1040   Determine whether you have an NOL and its amount. Irs 1040 See How To Figure an NOL , later. Irs 1040 If you do not have an NOL, stop here. Irs 1040 Step 3. Irs 1040   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. Irs 1040 See When To Use an NOL , later. Irs 1040 Step 4. Irs 1040   Deduct the NOL in the carryback or carryforward year. Irs 1040 See How To Claim an NOL Deduction , later. Irs 1040 If your NOL deduction is equal to or less than your taxable income without the deduction, stop here — you have used up your NOL. Irs 1040 Step 5. Irs 1040   Determine the amount of your unused NOL. Irs 1040 See How To Figure an NOL Carryover , later. Irs 1040 Carry over the unused NOL to the next carryback or carryforward year and begin again at Step 4. Irs 1040 Note. Irs 1040   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. Irs 1040 How To Figure an NOL If your deductions for the year are more than your income for the year, you may have an NOL. Irs 1040 There are rules that limit what you can deduct when figuring an NOL. Irs 1040 In general, the following items are not allowed when figuring an NOL. Irs 1040 Any deduction for personal exemptions. Irs 1040 Capital losses in excess of capital gains. Irs 1040 The section 1202 exclusion of the gain from the sale or exchange of qualified small business stock. Irs 1040 Nonbusiness deductions in excess of nonbusiness income. Irs 1040 The net operating loss deduction. Irs 1040 The domestic production activities deduction. Irs 1040 Form 1045, Schedule A. Irs 1040   Use Form 1045, Schedule A, to figure an NOL. Irs 1040 The following discussion explains Schedule A and includes an illustrated example. Irs 1040   First, complete Form 1045, Schedule A, line 1, using amounts from your return. Irs 1040 If line 1 is a negative amount, you may have an NOL. Irs 1040   Next, complete the rest of Form 1045, Schedule A, to figure your NOL. Irs 1040 Nonbusiness deductions (line 6). Irs 1040   Enter on line 6 deductions that are not connected to your trade or business or your employment. Irs 1040 Examples of deductions not related to your trade or business are: Alimony paid, Deductions for contributions to an 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, state income tax on trade and business income, and any employee business expenses), and The standard deduction. Irs 1040   Do not include on line 6 the deduction for personal exemptions for you, your spouse, or your dependents. Irs 1040   Do not enter business deductions on line 6. Irs 1040 These are deductions that are connected to your trade or business. Irs 1040 They include the following. Irs 1040 State income tax on income attributable to trade or business (including wages, salary, and unemployment compensation). Irs 1040 Moving expenses. Irs 1040 Educator expenses. Irs 1040 The deduction for the deductible part of self-employed health insurance. Irs 1040 Domestic production activities deduction. Irs 1040 Rental losses. Irs 1040 Loss on the sale or exchange of business real estate or depreciable property. Irs 1040 Your share of a business loss from a partnership or an S corporation. Irs 1040 Ordinary loss on the sale or exchange of stock in a small business corporation or a small business investment company. Irs 1040 If you itemize your deductions, casualty and theft losses (even if they involve nonbusiness property) and employee business expenses (such as union dues, uniforms, tools, education expenses, and travel and transportation expenses). Irs 1040 Loss on the sale of accounts receivable (if you use an accrual method of accounting). Irs 1040 Interest and litigation expenses on state and federal income taxes related to your business. Irs 1040 Unrecovered investment in a pension or annuity claimed on a decedent's final return. Irs 1040 Payment by a federal employee to buy back sick leave used in an earlier year. Irs 1040 Nonbusiness income (line 7). Irs 1040   Enter on line 7 only income that is not related to your trade or business or your employment. Irs 1040 For example, enter your annuity income, dividends, and interest on investments. Irs 1040 Also, include your share of nonbusiness income from partnerships and S corporations. Irs 1040   Do not include on line 7 the income you receive from your trade or business or your employment. Irs 1040 This includes salaries and wages, self-employment income, unemployment compensation included in your gross income, and your share of business income from partnerships and S corporations. Irs 1040 Also, do not include rental income or ordinary gain from the sale or other disposition of business real estate or depreciable business property. Irs 1040 Adjustment for section 1202 exclusion (line 17). Irs 1040   Enter on line 17 any gain you excluded under section 1202 on the sale or exchange of qualified small business stock. Irs 1040 Adjustments for capital losses (lines 19–22). Irs 1040   The amount deductible for capital losses is limited based on whether the losses are business capital losses or nonbusiness capital losses. Irs 1040 Nonbusiness capital losses. Irs 1040   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). Irs 1040 If your nonbusiness capital losses are more than your nonbusiness capital gains without regard to any section 1202 exclusion, you cannot deduct the excess. Irs 1040 Business capital losses. Irs 1040   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). Irs 1040 Domestic production activities deduction (line 23). Irs 1040   You cannot take the domestic production activities deduction when figuring your NOL. Irs 1040 Enter on line 23 any domestic production activities deduction claimed on your return. Irs 1040 NOLs from other years (line 24). Irs 1040   You cannot deduct any NOL carryovers or carrybacks from other years. Irs 1040 Enter the total amount of your NOL deduction for losses from other years. Irs 1040 Illustrated Form 1045, Schedule A The following example illustrates how to figure an NOL. Irs 1040 It includes filled-in pages 1 and 2 of Form 1040 and Form 1045, Schedule A. Irs 1040 Example. Irs 1040 Glenn Johnson is in the retail record business. Irs 1040 He is single and has the following income and deductions on his Form 1040 for 2013. Irs 1040 See the illustrated Form 1040 , later. Irs 1040 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 Glenn's 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 6,100 Personal exemption 3,900 Glenn's total deductions $16,000 Glenn's deductions exceed his income by $12,350 ($16,000 − $3,650). Irs 1040 However, to figure whether he has an NOL, certain deductions are not allowed. Irs 1040 He uses Form 1045, Schedule A, to figure his NOL. Irs 1040 See the Illustrated Form 1045, Schedule A , later. Irs 1040 The following items are not allowed on Form 1045, Schedule A. Irs 1040 Nonbusiness net short-term capital loss $1,000 Nonbusiness deductions (standard deduction, $6,100) minus nonbusiness income (interest, $425) 5,675 Deduction for personal exemption 3,900 Total adjustments to net loss $10,575     Therefore, Glenn's NOL for 2013 is figured as follows: Glenn's total 2013 income $3,650 Less:     Glenn's original 2013 total deductions $16,000   Reduced by the disallowed items − 10,575 − 5,425 Glenn's NOL for 2013 $1,775 This image is too large to be displayed in the current screen. Irs 1040 Please click the link to view the image. Irs 1040 Form 1040, page 1 This image is too large to be displayed in the current screen. Irs 1040 Please click the link to view the image. Irs 1040 Form 1040, page 2 This image is too large to be displayed in the current screen. Irs 1040 Please click the link to view the image. Irs 1040 Form 1045, page 2 When To Use an NOL Generally, if you have an NOL for a tax year ending in 2013, you must carry back the entire amount of the NOL to the 2 tax years before the NOL year (the carryback period), and then carry forward any remaining NOL for up to 20 years after the NOL year (the carryforward period). Irs 1040 You can, however, choose not to carry back an NOL and only carry it forward. Irs 1040 See Waiving the Carryback Period , later. Irs 1040 You cannot deduct any part of the NOL remaining after the 20-year carryforward period. Irs 1040 NOL year. Irs 1040   This is the year in which the NOL occurred. Irs 1040 Exceptions to 2-Year Carryback Rule Eligible losses, farming losses, qualified disaster losses, and specified liability losses, all defined next, qualify for longer carryback periods. Irs 1040 Eligible loss. Irs 1040   The carryback period for eligible losses is 3 years. Irs 1040 Only the eligible loss portion of the NOL can be carried back 3 years. Irs 1040 An eligible loss is any part of an NOL that: Is from a casualty or theft, or Is attributable to a federally declared disaster for a qualified small business or certain qualified farming businesses. Irs 1040 Qualified small business. Irs 1040   A qualified small business is a sole proprietorship or a partnership that has average annual gross receipts (reduced by returns and allowances) of $5 million or less during the 3-year period ending with the tax year of the NOL. Irs 1040 If the business did not exist for this entire 3-year period, use the period the business was in existence. Irs 1040   An eligible loss does not include a farming loss or a qualified disaster loss. Irs 1040 Farming loss. Irs 1040   The carryback period for a farming loss is 5 years. Irs 1040 Only the farming loss portion of the NOL can be carried back 5 years. Irs 1040 A farming loss is the smaller of: The amount that would be the NOL for the tax year if only income and deductions attributable to farming businesses were taken into account, or The NOL for the tax year. Irs 1040 Farming business. Irs 1040   A farming business is a trade or business involving cultivation of land or the raising or harvesting of any agricultural or horticultural commodity. Irs 1040 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. Irs 1040 The raising, shearing, feeding, caring for, training, and management of animals is also considered a farming business. Irs 1040   A farming business does not include contract harvesting of an agricultural or horticultural commodity grown or raised by someone else. Irs 1040 It also does not include a business in which you merely buy or sell plants or animals grown or raised entirely by someone else. Irs 1040 Waiving the 5-year carryback. Irs 1040   You can choose to figure the carryback period for a farming loss without regard to the special 5-year carryback rule. Irs 1040 To make this choice for 2013, attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are choosing to treat any 2013 farming losses without regard to the special 5-year carryback rule. Irs 1040 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 after the due date of the return (excluding extensions). Irs 1040 Attach an election statement to your amended return, and write “Filed pursuant to section 301. Irs 1040 9100-2” at the top of the statement. Irs 1040 Once made, this choice is irrevocable. Irs 1040 Qualified disaster loss. Irs 1040   The carryback period for a qualified disaster loss is 5 years. Irs 1040 Only the qualified disaster loss portion of the NOL can be carried back 5 years. Irs 1040 A qualified disaster loss is the smaller of: The sum of: Any losses attributable to a federally declared disaster and occurring before January 1, 2010, in the disaster area, plus Any allowable qualified disaster expenses (even if you did not choose to treat those expenses as deductions in the current year), or The NOL for the tax year. Irs 1040 Qualified disaster expenses. Irs 1040   A qualified disaster expense is any capital expense paid or incurred in connection with a trade or business or with business-related property which is: For the abatement or control of hazardous substances that were released as a result of a federally declared disaster occurring before January 1, 2010, For the removal of debris from, or the demolition of structures on, real property which is business-related property damaged or destroyed as a result of a federally declared disaster occurring before January 1, 2010, or For the repair of business-related property damaged as a result of a federally declared disaster occurring before January 1, 2010. Irs 1040 Business-related property is property held for use in a trade or business, property held for the production of income, or inventory property. Irs 1040 Note. Irs 1040 Section 198A allows taxpayers to treat certain capital expenses (qualified disaster expenses) as deductions in the year the expenses were paid or incurred. Irs 1040 Excluded losses. Irs 1040   A qualified disaster loss does not include any losses from property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store for which the principal business is the sale of alcoholic beverages for consumption off premises. Irs 1040   A qualified disaster loss also does not include any losses from any gambling or animal racing property. Irs 1040 Gambling or animal racing property is any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and the portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. Irs 1040 Specified liability loss. Irs 1040   The carryback period for a specified liability loss is 10 years. Irs 1040 Only the specified liability loss portion of the NOL can be carried back 10 years. Irs 1040 Generally, a specified liability loss is a loss arising from: Product liability and expenses incurred in the investigation or settlement of, or opposition to, product liability claims, or An act (or failure to act) that occurred at least 3 years before the beginning of the loss year and resulted in a liability under a federal or state law requiring: Reclamation of land, Dismantling of a drilling platform, Remediation of environmental contamination, or Payment under any workers compensation act. Irs 1040   Any loss from a liability arising from (1) through (4) above can be taken into account as a specified liability loss only if you used an accrual method of accounting throughout the period in which the act (or failure to act) occurred. Irs 1040 For details, see section 172(f). Irs 1040 Waiving the 10-year carryback. Irs 1040   You can choose to figure the carryback period for a specified liability loss without regard to the special 10-year carryback rule. Irs 1040 To make this choice for 2013 attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are choosing to treat any 2013 specified liability losses without regard to the special 10-year carryback rule. Irs 1040 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 after the due date of the return (excluding extensions). Irs 1040 Attach a statement to your amended return and write “Filed pursuant to section 301. Irs 1040 9100-2” at the top of the statement. Irs 1040 Once made, this choice is irrevocable. Irs 1040 Waiving the Carryback Period You can choose not to carry back your NOL. Irs 1040 If you make this choice, then you can use your NOL only in the 20-year carryforward period. Irs 1040 (This choice means you also choose not to carry back any alternative tax NOL. Irs 1040 ) To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. Irs 1040 This statement must show that you are choosing to waive the carryback period under section 172(b)(3). Irs 1040 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). Irs 1040 Attach a statement to your amended return, and write “Filed pursuant to section 301. Irs 1040 9100-2” at the top of the statement. Irs 1040 Once you choose to waive the carryback period, it generally is irrevocable. Irs 1040 If you choose to waive the carryback period for more than one NOL, you must make a separate choice and attach a separate statement for each NOL year. Irs 1040 If you do not file this statement on time, you cannot waive the carryback period. Irs 1040 How To Carry an NOL Back or Forward If you choose to carry back the NOL, you must first carry the entire NOL to the earliest carryback year. Irs 1040 If your NOL is not used up, you can carry the rest to the next earliest carryback year, and so on. Irs 1040 If you waive the carryback period or do not use up the NOL in the carryback period, carry forward what remains of the NOL to the 20 tax years following the NOL year. Irs 1040 Start by carrying it to the first tax year after the NOL year. Irs 1040 If you do not use it up, carry the unused part to the next year. Irs 1040 Continue to carry any unused part of the NOL forward until the NOL is used up or you complete the 20-year carryforward period. Irs 1040 Example 1. Irs 1040 You started your business as a sole proprietor in 2013 and had a $42,000 NOL for the year. Irs 1040 No part of the NOL qualifies for the 3-year, 5-year, or 10-year carryback. Irs 1040 You begin using your NOL in 2011, the second year before the NOL year, as shown in the following chart. Irs 1040 Year   Carryback/  Carryover Unused  Loss 2011 $42,000 $40,000 2012 40,000 37,000 2013 (NOL year)     2014 37,000 31,500 2015 31,500 22,500 2016 22,500 12,700 2017 12,700 4,000 2018 4,000 -0- If your loss were larger, you could carry it forward until the year 2033. Irs 1040 If you still had an unused 2013 carryforward after the year 2033, you would not be allowed to deduct it. Irs 1040 Example 2. Irs 1040 Assume the same facts as in Example 1 , except that $4,000 of the NOL is attributable to a casualty loss and this loss qualifies for a 3-year carryback period. Irs 1040 You begin using the $4,000 in 2010. Irs 1040 As shown in the following chart, $3,000 of this NOL is used in 2010. Irs 1040 The remaining $1,000 is carried to 2011 with the $38,000 NOL that you must begin using in 2011. Irs 1040 Year   Carryback/  Carryover Unused  Loss 2010 $4,000 $1,000 2011 39,000 37,000 2012 37,000 34,000 2013 (NOL year)     2014 34,000 28,500 2015 28,500 19,500 2016 19,500 9,700 2017 9,700 1,000 2018 1,000 -0- How To Claim an NOL Deduction If you have not already carried the NOL to an earlier year, your NOL deduction is the total NOL. Irs 1040 If you carried the NOL to an earlier year, your NOL deduction is the carried over NOL minus the NOL amount you used in the earlier year or years. Irs 1040 If you carry more than one NOL to the same year, your NOL deduction is the total of these carrybacks and carryovers. Irs 1040 NOL resulting in no taxable income. Irs 1040   If your NOL is more than the taxable income of the year you carry it to (figured before deducting the NOL), you generally will have an NOL carryover to the next year. Irs 1040 See How To Figure an NOL Carryover , later, to determine how much NOL you have used and how much you carry to the next year. Irs 1040 Deducting a Carryback If you carry back your NOL, you can use either Form 1045 or Form 1040X. Irs 1040 You can get your refund faster by using Form 1045, but you have a shorter time to file it. Irs 1040 You can use Form 1045 to apply an NOL to all carryback years. Irs 1040 If you use Form 1040X, you must use a separate Form 1040X for each carryback year to which you apply the NOL. Irs 1040 Estates and trusts that do not file Form 1045 must file an amended Form 1041 (instead of Form 1040X) for each carryback year to which NOLs are applied. Irs 1040 Use a copy of the appropriate year's Form 1041, check the “Amended return” box, and follow the Form 1041 instructions for amended returns. Irs 1040 Include the NOL deduction with other deductions not subject to the 2% limit (line 15a). Irs 1040 Also, see the special procedures for filing an amended return due to an NOL carryback, explained under Form 1040X , later. Irs 1040 Form 1045. Irs 1040   You can apply for a quick refund by filing Form 1045. Irs 1040 This form results in a tentative adjustment of tax in the carryback year. Irs 1040 See the Illustrated Form 1045 . Irs 1040 at the end of this discussion. Irs 1040   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 immediately. Irs 1040   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. Irs 1040 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. Irs 1040 For example, if you are a calendar year taxpayer with a carryback from 2013 to 2011, you must file Form 1045 on or after the date you file your tax return for 2013, but no later than December 31, 2014. Irs 1040 Form 1040X. Irs 1040   If you do not file Form 1045, you can file Form 1040X to get a refund of tax because of an NOL carryback. Irs 1040 File Form 1040X within 3 years after the due date, including extensions, for filing the return for the NOL year. Irs 1040 For example, if you are a calendar year taxpayer and filed your 2011 return by the April 15, 2012, due date, you must file a claim for refund of 2008 tax because of an NOL carryback from 2011 by April 15, 2015. Irs 1040   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 1040 Refiguring your tax. Irs 1040   To refigure your total tax liability for a carryback year, first refigure your adjusted gross income for that year. Irs 1040 (On Form 1045, use lines 10 and 11 and the “After carryback” column for the applicable carryback year. Irs 1040 ) Use your adjusted gross income after applying the NOL deduction to refigure income or deduction items that are based on, or limited to, a percentage of your adjusted gross income. Irs 1040 Refigure the following items. Irs 1040 The special allowance for passive activity losses from rental real estate activities. Irs 1040 Taxable social security and tier 1 railroad retirement benefits. Irs 1040 IRA deductions. Irs 1040 Excludable savings bond interest. Irs 1040 Excludable employer-provided adoption benefits. Irs 1040 The student loan interest deduction. Irs 1040 The tuition and fees deduction. Irs 1040   If more than one of these items apply, refigure them in the order listed above, using your adjusted gross income after applying the NOL deduction and any previous item. Irs 1040 (Enter your NOL deduction on Form 1045, line 10. Irs 1040 On line 11, using the “After carryback” column, enter your adjusted gross income refigured after applying the NOL deduction and after refiguring any above items. Irs 1040 )   Next, refigure your taxable income. Irs 1040 (On Form 1045, use lines 12 through 15 and the “After carryback” column. Irs 1040 ) Use your refigured adjusted gross income (Form 1045, line 11, using the “After carryback” column) to refigure certain deductions and other items that are based on or limited to a percentage of your adjusted gross income. Irs 1040 Refigure the following items. Irs 1040 The itemized deduction for medical expenses. Irs 1040 The itemized deduction for qualified mortgage insurance premiums. Irs 1040 The itemized deduction for casualty losses. Irs 1040 Miscellaneous itemized deductions subject to the 2% limit. Irs 1040 The overall limit on itemized deductions (do not apply to carryback years beginning after December 31, 2009). Irs 1040 The phaseout of the deduction for exemptions (do not apply to carryback years beginning after December 31, 2009). Irs 1040 Qualified motor vehicle tax (do not apply to carryback years beginning after December 31, 2009). Irs 1040    Do not refigure the itemized deduction for charitable contributions. Irs 1040   Finally, use your refigured taxable income (Form 1045, line 15, using the “After carryback” column) to refigure your total tax liability. Irs 1040 Refigure your income tax, your alternative minimum tax, and any credits that are based on or limited by your adjusted gross income (AGI), modified adjusted gross income (MAGI), or tax liability. Irs 1040 (On Form 1045, use lines 16 through 25, and the “After carryback” column. Irs 1040 ) The earned income credit, for example, may be affected by changes to adjusted gross income or the amount of tax (or both) and, therefore, must be recomputed. Irs 1040 If you become eligible for a credit because of the carryback, complete the form for that specific credit (such as the EIC Worksheet) for that year. Irs 1040   While it is necessary to refigure your income tax, alternative minimum tax, and credits, do not refigure your self-employment tax. Irs 1040 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 the “Other income” line of Form 1040 or Form 1040NR (line 21 for 2013). Irs 1040 Estates and trusts include an NOL deduction on Form 1041 with other deductions not subject to the 2% limit (line 15a for 2013). Irs 1040 You must attach a statement that shows all the important facts about the NOL. Irs 1040 Your statement should include a computation showing how you figured the NOL deduction. Irs 1040 If you deduct more than one NOL in the same year, your statement must cover each of them. Irs 1040 Change in Marital Status If you and your spouse were not married to each other in all years involved in figuring NOL carrybacks and carryovers, only the spouse who had the loss can take the NOL deduction. Irs 1040 If you file a joint return, the NOL deduction is limited to the income of that spouse. Irs 1040 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 reported on the joint return (filed with your former spouse) that was related to your taxable income. Irs 1040 After you deduct the NOL in the carryback year, the joint rates apply to the resulting taxable income. Irs 1040 Refund limit. Irs 1040   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. Irs 1040 You can claim a refund for the difference between your share of the refigured tax and your contribution toward the tax paid on the joint return. Irs 1040 The refund cannot be more than the joint overpayment. Irs 1040 Attach a statement showing how you figured your refund. Irs 1040 Figuring your share of a joint tax liability. Irs 1040   There are five steps for figuring your share of the refigured joint tax liability. Irs 1040 Figure your total tax as though you had filed as married filing separately. Irs 1040 Figure your spouse's total tax as though your spouse had also filed as married filing separately. Irs 1040 Add the amounts in (1) and (2). Irs 1040 Divide the amount in (1) by the amount in (3). Irs 1040 Multiply the refigured tax on your joint return by the amount figured in (4). Irs 1040 This is your share of the joint tax liability. Irs 1040 Figuring your contribution toward tax paid. Irs 1040   Unless you have an agreement or clear evidence of each spouse's contributions toward the payment of the joint tax liability, figure your contribution by adding the tax withheld on your wages and your share of joint estimated tax payments or tax paid with the return. Irs 1040 If the original return for the carryback year resulted in an overpayment, reduce your contribution by your share of the tax refund. Irs 1040 Figure your share of a joint payment or refund by the same method used in figuring your share of the joint tax liability. Irs 1040 Use your taxable income as originally reported on the joint return in steps (1) and (2) above, and substitute the joint payment or refund for the refigured joint tax in step (5). Irs 1040 Change in Filing Status If you and your spouse were married and filed a joint return for each year involved in figuring NOL carrybacks and carryovers, figure the NOL deduction on a joint return as you would for an individual. Irs 1040 However, treat the NOL deduction as a joint NOL. Irs 1040 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. Irs 1040 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. Irs 1040 Separate to joint return. Irs 1040   If you and your spouse file a joint return for a carryback or carryforward year, and were married but filed separate returns for any of the tax years involved in figuring the NOL carryback or carryover, treat the separate carryback or carryover as a joint carryback or carryover. Irs 1040 Joint to separate returns. Irs 1040   If you and your spouse file separate returns for a carryback or carryforward year, but filed a joint return for any or all of the tax years involved in figuring the NOL carryover, figure each of your carryovers separately. Irs 1040 Joint return in NOL year. Irs 1040   Figure each spouse's share of the joint NOL through the following steps. Irs 1040 Figure each spouse's NOL as if he or she filed a separate return. Irs 1040 See How To Figure an NOL , earlier. Irs 1040 If only one spouse has an NOL, stop here. Irs 1040 All of the joint NOL is that spouse's NOL. Irs 1040 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). Irs 1040 The result is spouse A's share of the joint NOL. Irs 1040 The rest of the joint NOL is spouse B's share. Irs 1040 Example 1. Irs 1040 Mark and Nancy are married and file a joint return for 2013. Irs 1040 They have an NOL of $5,000. Irs 1040 They carry the NOL back to 2011, a year in which Mark and Nancy filed separate returns. Irs 1040 Figured separately, Nancy's 2013 deductions were more than her income, and Mark's income was more than his deductions. Irs 1040 Mark does not have any NOL to carry back. Irs 1040 Nancy can carry back the entire $5,000 NOL to her 2011 separate return. Irs 1040 Example 2. Irs 1040 Assume the same facts as in Example 1 , except that both Mark and Nancy had deductions in 2013 that were more than their income. Irs 1040 Figured separately, his NOL is $1,800 and her NOL is $3,000. Irs 1040 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. Irs 1040 The loss is allowed in figuring their joint NOL because it was offset by Nancy's capital gains. Irs 1040 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). Irs 1040 Joint return in previous carryback or carryforward year. Irs 1040   If only one spouse had an NOL deduction on the previous year's joint return, all of the joint carryover is that spouse's carryover. Irs 1040 If both spouses had an NOL deduction (including separate carryovers of a joint NOL, figured as explained in the previous discussion ), figure each spouse's share of the joint carryover through the following steps. Irs 1040 Figure each spouse's modified taxable income as if he or she filed a separate return. Irs 1040 See Modified taxable income under How To Figure an NOL Carryover , later. Irs 1040 Multiply the joint modified taxable income you used to figure the joint carryover by a fraction, the numerator of which is spouse A's modified taxable income figured in (1) and the denominator of which is the total of the spouses' modified taxable incomes figured in (1). Irs 1040 This is spouse A's share of the joint modified taxable income. Irs 1040 Subtract the amount figured in (2) from the joint modified taxable income. Irs 1040 This is spouse B's share of the joint modified taxable income. Irs 1040 Reduce the amount figured in (3), but not below zero, by spouse B's NOL deduction. Irs 1040 Add the amounts figured in (2) and (4). Irs 1040 Subtract the amount figured in (5) from spouse A's NOL deduction. Irs 1040 This is spouse A's share of the joint carryover. Irs 1040 The rest of the joint carryover is spouse B's share. Irs 1040 Example. Irs 1040 Sam and Wanda filed a joint return for 2011 and separate returns for 2012 and 2013. Irs 1040 In 2013, Sam had an NOL of $18,000 and Wanda had an NOL of $2,000. Irs 1040 They choose to carry back both NOLs 2 years to their 2011 joint return and claim a $20,000 NOL deduction. Irs 1040 Their joint modified taxable income (MTI) for 2011 is $15,000, and their joint NOL carryover to 2012 is $5,000 ($20,000 – $15,000). Irs 1040 Sam and Wanda each figure their separate MTI for 2011 as if they had filed separate returns. Irs 1040 Then they figure their shares of the $5,000 carryover as follows. Irs 1040 Step 1. Irs 1040   Sam's separate MTI $9,000 Wanda's separate MTI + 3,000 Total MTI $12,000 Step 2. Irs 1040   Joint MTI $15,000 Sam's MTI ÷ total MTI ($9,000 ÷ $12,000) × . Irs 1040 75 Sam's share of joint MTI $11,250 Step 3. Irs 1040   Joint MTI $15,000 Sam's share of joint MTI − 11,250 Wanda's share of joint MTI $3,750 Step 4. Irs 1040   Wanda's share of joint MTI $3,750 Wanda's NOL deduction − 2,000 Wanda's remaining share $1,750 Step 5. Irs 1040   Sam's share of joint MTI $11,250 Wanda's remaining share + 1,750 Joint MTI to be offset $13,000 Step 6. Irs 1040   Sam's NOL deduction $18,000 Joint MTI to be offset − 13,000 Sam's carryover to 2012 $5,000 Joint carryover to 2012 $5,000 Sam's carryover − 5,000 Wanda's carryover to 2012 $-0- Wanda's $2,000 NOL deduction offsets $2,000 of her $3,750 share of the joint modified taxable income and is completely used up. Irs 1040 She has no carryover to 2012. Irs 1040 Sam's $18,000 NOL deduction offsets all of his $11,250 share of joint modified taxable income and the remaining $1,750 of Wanda's share. Irs 1040 His carryover to 2012 is $5,000. Irs 1040 Illustrated Form 1045 The following example illustrates how to use Form 1045 to claim an NOL deduction in a carryback year. Irs 1040 It includes a filled-in page 1 of Form 1045. Irs 1040 Example. Irs 1040 Martha Sanders is a self-employed contractor. Irs 1040 Martha's 2013 deductions are more than her 2013 income because of a business loss. Irs 1040 She uses Form 1045 to carry back her NOL 2 years and claim an NOL deduction in 2011. Irs 1040 Her filing status in both years was single. Irs 1040 See the filled-in Form 1045 later. Irs 1040 Martha figures her 2013 NOL on Form 1045, Schedule A (not shown). Irs 1040 (For an example using Form 1045, Schedule A, see Illustrated Form 1045, Schedule A under How To Figure an NOL , earlier. Irs 1040 ) She enters the $10,000 NOL from Form 1045, Schedule A, line 25, on Form 1045, line 1a. Irs 1040 Martha completes lines 10 through 25, using the “Before carryback” column under the column for the second preceding tax year ended 12/31/11 on page 1 of Form 1045 using the following amounts from her 2011 return. Irs 1040 2011 Adjusted gross income $50,000 Itemized deductions:     Medical expenses [$6,000 − ($50,000 × 7. Irs 1040 5%)] $2,250   State income tax + 2,000   Real estate tax + 4,000   Home mortgage interest + 5,000   Total itemized deductions $13,250 Exemption $3,700 Income tax $4,550 Self-employment tax $6,120   Martha refigures her taxable income for 2011 after carrying back her 2013 NOL as follows: 2011 Adjusted gross income $50,000 Less:     NOL from 2013 −10,000 2011 Adjusted gross income after carryback $40,000 Less:     Itemized deductions:     Medical expenses [$6,000 − ($40,000 × 7. Irs 1040 5%)] $3,000   State income tax + 2,000   Real estate tax + 4,000   Home mortgage interest + 5,000   Total itemized deductions −14,000 Less:     Exemption − 3,700 2011 Taxable income after carryback $22,300 Martha then completes lines 10 through 25, using the “After carryback” column under the column for the second preceding tax year ended 12/31/11. Irs 1040 On line 10, Martha enters her $10,000 NOL deduction. Irs 1040 Her new adjusted gross income on line 11 is $40,000 ($50,000 − $10,000). Irs 1040 To complete line 12, she must refigure her medical expense deduction using her new adjusted gross income. Irs 1040 Her refigured medical expense deduction is $3,000 [$6,000 − ($40,000 × 7. Irs 1040 5%)]. Irs 1040 This increases her total itemized deductions to $14,000 [$13,250 + ($3,000 − $2,250)]. Irs 1040 Martha uses her refigured taxable income ($22,300) from line 15, and the tax tables in her 2011 Form 1040 instructions to find her income tax. Irs 1040 She enters the new amount, $2,924, on line 16, and her new total tax liability, $9,044, on line 25. Irs 1040 Martha used up her $10,000 NOL in 2011 so she does not complete a column for the first preceding tax year ended 12/31/2012. Irs 1040 The decrease in tax because of her NOL deduction (line 27) is $1,612. Irs 1040 Martha files Form 1045 after filing her 2013 return, but no later than December 31, 2014. Irs 1040 She mails it to the Internal Revenue Service Center for the place where she lives as shown in the 2013 instructions for Form 1040 and attaches a copy of her 2013 return (including the applicable forms and schedules). Irs 1040 This image is too large to be displayed in the current screen. Irs 1040 Please click the link to view the image. Irs 1040 Form 1045, page 1 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. Irs 1040 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. Irs 1040 Your carryover is the excess of your NOL deduction over your modified taxable income for the carryback or carryforward year. Irs 1040 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. Irs 1040 Modified taxable income. Irs 1040   Your modified taxable income is your taxable income figured with the following changes. Irs 1040 You cannot claim an NOL deduction for the NOL carryover you are figuring or for any later NOL. Irs 1040 You cannot claim a deduction for capital losses in excess of your capital gains. Irs 1040 Also, you must increase your taxable income by the amount of any section 1202 exclusion. Irs 1040 You cannot claim the domestic production activities deduction. Irs 1040 You cannot claim a deduction for your exemptions for yourself, your spouse, or dependents. Irs 1040 You must figure any item affected by the amount of your adjusted gross income after making the changes in (1), (2), and (3), above, and certain other changes to your adjusted gross income that result from (1), (2), and (3). Irs 1040 This includes income and deduction items used to figure adjusted gross income (for example, IRA deductions), as well as certain itemized deductions. Irs 1040 To figure a charitable contribution deduction, do not include deductions for NOL carrybacks in the change in (1) but do include deductions for NOL carryforwards from tax years before the NOL year. Irs 1040   Your taxable income as modified cannot be less than zero. Irs 1040 Form 1045, Schedule B. Irs 1040   You can use Form 1045, Schedule B, to figure your modified taxable income for carryback years and your carryover from each of those years. Irs 1040 Do not use Form 1045, Schedule B, for a carryforward year. Irs 1040 If your 2013 return includes an NOL deduction from an NOL year before 2013 that reduced your taxable income to zero (to less than zero, if an estate or trust), see NOL Carryover From 2013 to 2014 , later. Irs 1040 Illustrated Form 1045, Schedule B The following example illustrates how to figure an NOL carryover from a carryback year. Irs 1040 It includes a filled-in Form 1045, Schedule B. Irs 1040 Example. Irs 1040 Ida Brown runs a small clothing shop. Irs 1040 In 2013, she has an NOL of $36,000 that she carries back to 2011. Irs 1040 She has no other carrybacks or carryforwards to 2011. Irs 1040 Ida's adjusted gross income in 2011 was $35,000, consisting of her salary of $36,000 minus a $1,000 capital loss deduction. Irs 1040 She is single and claimed only one personal exemption of $3,700. Irs 1040 During that year, she gave $1,450 in charitable contributions. Irs 1040 Her medical expenses were $3,000. Irs 1040 She also deducted $1,650 in taxes and $3,125 in home mortgage interest. Irs 1040 Her deduction for charitable contributions was not limited because her contributions, $1,450, were less than 50% of her adjusted gross income. Irs 1040 The deduction for medical expenses was limited to expenses over 7. Irs 1040 5% of adjusted gross income (. Irs 1040 075 × $35,000 = $2,625; $3,000 − $2,625 = $375). Irs 1040 The deductions for taxes and home mortgage interest were not subject to any limits. Irs 1040 She was able to claim $6,600 ($1,450 + $375 + $1,650 + $3,125) in itemized deductions and a personal exemption deduction of $3,700 for 2011. Irs 1040 She had no other deductions in 2011 (except the NOL deduction). Irs 1040 Her taxable income (figured without the NOL deduction) for the year was $24,700. Irs 1040 Ida's adjusted gross income in 2012 was $9,325, consisting of net business income from the clothing shop of $12,325 and a net capital loss of $3,000. Irs 1040 She did not itemize her deductions in 2012. Irs 1040 She deducted the standard deduction of $5,950 and the personal exemption deduction of $3,800. Irs 1040 She had no other deductions in 2012 (other than the NOL deduction). Irs 1040 Her taxable income, therefore, was ($425). Irs 1040 Ida's $36,000 carryback will result in her having 2011 taxable income of zero. Irs 1040 She then completes the column for the second preceding tax year ended 12/31/11 on Form 1045, Schedule B, to figure how much of her NOL she uses up in 2011 and how much she can carry over to 2012. Irs 1040 She completes the column for the first preceding tax year ended 12/31/12. Irs 1040 See the illustrated Form 1045, Schedule B , shown later. Irs 1040 Column 1, line 1. Irs 1040 Ida enters $36,000, her 2013 net operating loss, on line 1. Irs 1040 Column 1, line 2. Irs 1040 She enters $24,700, her 2011 taxable income (figured without the NOL deduction), on line 2. Irs 1040 Column 1, line 3. Irs 1040 Ida enters her net capital loss deduction of $1,000 on line 3. Irs 1040 Column 1, lines 4 and 5. Irs 1040 Ida had no section 1202 exclusion or domestic production activities deduction in 2011. Irs 1040 She enters zero on lines 4 and 5. Irs 1040 Column 1, line 6. Irs 1040 Although Ida's entry on line 3 modifies her adjusted gross income, that does not affect any other items included in her adjusted gross income. Irs 1040 Ida enters zero on line 6. Irs 1040 Column 1, line 7. Irs 1040 Ida had itemized deductions and entered $1,000 on line 3, so she completes lines 11 through 38 to figure her adjustment to itemized deductions. Irs 1040 On line 7, she enters the total adjustment from line 38. Irs 1040 Column 1, line 8. Irs 1040 Ida enters the deduction for her personal exemption of $3,700 for 2011. Irs 1040 Column 1, line 9. Irs 1040 After combining lines 2 through 8, Ida's modified taxable income is $29,475. Irs 1040 Column 1, line 10. Irs 1040 Ida figures her carryover to 2012 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). Irs 1040 She enters the $6,525 carryover on line 10. Irs 1040 She also enters the $6,525 as her NOL deduction for 2012 on Form 1045, page 1, line 10, in the “After carryback” column under the column for the first preceding tax year ended 12/31/12. Irs 1040 (For an illustrated example of page 1 of Form 1045, see Illustrated Form 1045 under How To Claim an NOL Deduction , earlier. Irs 1040 ) Next, Ida completes column 2 for the first preceding tax year ended 12/31/12. Irs 1040 Column 1, line 11. Irs 1040 Ida's adjusted gross income for 2011 was $35,000. Irs 1040 Column 1, line 12. Irs 1040 She adds lines 3 through 6 and enters $1,000 on line 12. Irs 1040 (This is her net capital loss deduction added back, which modifies her adjusted gross income. Irs 1040 ) Column 1, line 13. Irs 1040 Her modified adjusted gross income for 2011 is now $36,000. Irs 1040 Column 1, line 14. Irs 1040 On her 2011 tax return, she deducted $375 as medical expenses. Irs 1040 Column 1, line 15. Irs 1040 Her actual medical expenses were $3,000. Irs 1040 Column 1, line 16. Irs 1040 She multiplies her modified adjusted gross income, $36,000, by . Irs 1040 075. Irs 1040 She enters $2,700 on line 16. Irs 1040 Column 1, line 17. Irs 1040 She substracts $2,700 from her actual medical expenses, $3,000. Irs 1040 She enters $300 on line 17. Irs 1040 This is her modified medical deduction. Irs 1040 Column 1, line 18. Irs 1040 The difference between her medical deduction and her modified medical deduction is $75. Irs 1040 She enters this on line 18. Irs 1040 Column 1, lines 19 through 21. Irs 1040 Ida had no deduction for qualified mortgage insurance premiums in 2011. Irs 1040 She skips lines 19 and 20 and enters zero on line 21. Irs 1040 Column 1, line 22. Irs 1040 She enters her modified adjusted gross income of $36,000 on line 22. Irs 1040 Column 1, line 23. Irs 1040 She had no other carrybacks to 2011 and enters zero on line 23. Irs 1040 Column 1, line 24. Irs 1040 Her modified adjusted gross income remains $36,000. Irs 1040 Column 1, line 25. Irs 1040 Her actual contributions for 2011 were $1,450, which she enters on line 25. Irs 1040 Column 1, line 26. Irs 1040 She now refigures her charitable contributions based on her modified adjusted gross income. Irs 1040 Her contributions are well below the 50% limit, so she enters $1,450 on line 26. Irs 1040 Column 1, line 27. Irs 1040 The difference is zero. Irs 1040 Column 1, lines 28 through 37. Irs 1040 Ida had no casualty losses or deductions for miscellaneous items in 2011. Irs 1040 She skips lines 28 through 31 and lines 33 through 36. Irs 1040 Ida enters zero on lines 32 and 37. Irs 1040 Column 1, line 38. Irs 1040 She combines lines 18, 21, 27, 32, and 37 and enters $75 on line 38. Irs 1040 She carries this figure to line 7. Irs 1040 Column 2, line 1. Irs 1040 Ida enters $6,525, the carryback of her 2013 NOL to 2012, from column 1, line 10, on line 1. Irs 1040 Column 2, line 2. Irs 1040 She enters ($425), her 2012 taxable income, on line 2. Irs 1040 Column 2, line 3. Irs 1040 Ida enters her net capital loss deduction of $3,000 on line 3. Irs 1040 Column 2, lines 4 and 5. Irs 1040 Ida had no section 1202 exclusion or domestic production activities deduction in 2012. Irs 1040 She enters zero on lines 4 and 5. Irs 1040 Column 2, line 6. Irs 1040 Although Ida's entry on line 3 modifies her adjusted gross income, that does not affect any other items included in her adjusted gross income. Irs 1040 Ida enters zero on line 6. Irs 1040 Column 2, line 7. Irs 1040 Because Ida did not itemize deductions on her 2012 tax return, she enters zero on line 7. Irs 1040 Column 2, line 8. Irs 1040 Ida enters the deduction for her personal exemption of $3,800 for 2012. Irs 1040 Column 2, line 9. Irs 1040 After combining lines 2 through 8, Ida's modified taxable income is $6,375. Irs 1040 Column 2, line 10. Irs 1040 Ida figures her carryforward to 2014 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). Irs 1040 She enters the $150 carryover on line 10. Irs 1040 This image is too large to be displayed in the current screen. Irs 1040 Please click the link to view the image. Irs 1040 Form 1045, page 3 This image is too large to be displayed in the current screen. Irs 1040 Please click the link to view the image. Irs 1040 Form 1045, page 4 NOL Carryover From 2013 to 2014 If you had an NOL deduction carried forward from a year prior to 2013 that resulted in your having taxable income on your 2013 return of zero (of less than zero, if an estate or trust), complete Table 1 , Worksheet for NOL Carryover From 2013 to 2014, on the following pages. Irs 1040 It will help you figure your NOL to carry to 2014. Irs 1040 Keep the worksheet for your records. Irs 1040 Worksheet Instructions At the top of the worksheet, enter the NOL year for which you are figuring the carryover. Irs 1040 More than one NOL. Irs 1040   If your 2013 NOL deduction includes amounts for more than one loss year, complete this worksheet only for one loss year. Irs 1040 To determine which year, start with your earliest NOL and subtract each NOL separately from your taxable income figured without the NOL deduction. Irs 1040 Complete this worksheet for the earliest NOL that results in your having taxable income below zero. Irs 1040 Your NOL carryover to 2014 is the total of the amount on line 10 of the worksheet and all later NOL amounts. Irs 1040 Example. Irs 1040 Your taxable income for 2013 is $5,000 without your $9,000 NOL deduction. Irs 1040 Your NOL deduction includes a $2,000 carryover from 2011 and a $7,000 carryover from 2012. Irs 1040 Subtract your 2011 NOL of $2,000 from $5,000. Irs 1040 This gives you taxable income of $3,000. Irs 1040 Your 2011 NOL is now completely used up. Irs 1040 Subtract your $7,000 2012 NOL from $3,000. Irs 1040 This gives you taxable income of ($4,000). Irs 1040 You now complete the worksheet for your 2012 NOL. Irs 1040 Your NOL carryover to 2014 is the unused part of your 2012 NOL from line 10 of the worksheet. Irs 1040 Line 2. Irs 1040   Treat your NOL deduction for the NOL year entered at the top of the worksheet and later years as a positive amount. Irs 1040 Add it to your negative taxable income (figured without the NOL deduction). Irs 1040 Enter the result on line 2. Irs 1040 Line 6. Irs 1040   You must refigure the following income and deductions based on adjusted gross income. Irs 1040 The special allowance for passive activity losses from rental real estate activities. Irs 1040 Taxable social security and tier 1 railroad retirement benefits. Irs 1040 IRA deductions. Irs 1040 Excludable savings bond interest. Irs 1040 Excludable employer-provided adoption benefits. Irs 1040 The student loan interest deduction. Irs 1040 The tuition and fees deduction. Irs 1040   If none of these items apply to you, enter zero on line 6. Irs 1040 Otherwise, increase your adjusted gross income by the total of lines 3 through 5 and your NOL deduction for the NOL year entered at the top of the worksheet and later years. Irs 1040 Using this increased adjusted gross income, refigure the items that apply, in the order listed above. Irs 1040 Your adjustment for each item is the difference between the refigured amount and the amount included on your return. Irs 1040 Combine the adjustments for previous items with your adjusted gross income before refiguring the next item. Irs 1040 Keep a record of your computations. Irs 1040   Enter your total adjustments for the above items on line 6. Irs 1040 Line 7. Irs 1040   Enter zero if you claimed the standard deduction or the amounts on lines 3 through 5 are zero. Irs 1040 Otherwise, use lines 11 through 33 of the worksheet to figure the amount to enter on this line. Irs 1040 Complete only those sections that apply to you. Irs 1040 Estates and trusts. Irs 1040   Enter zero on line 7 if you did not claim any miscellaneous deductions on Form 1041, line 15c, or a casualty or theft loss. Irs 1040 Otherwise, refigure these deductions by substituting modified adjusted gross income (see below ) for adjusted gross income. Irs 1040 Subtract the recomputed deductions from those claimed on the return. Irs 1040 Enter the result on line 7. Irs 1040 Modified adjusted gross income. Irs 1040   To refigure miscellaneous itemized deductions of an estate or trust (Form 1041, line 15c), modified adjusted gross income is the total of the following amounts. Irs 1040 The adjusted gross income on the return. Irs 1040 The amounts from lines 3 through 5 of the worksheet. Irs 1040 The exemption amount from Form 1041, line 20. Irs 1040 The NOL deduction for the NOL year entered at the top of the worksheet and for later years. Irs 1040   To refigure the casualty and theft loss deduction of an estate or trust, modified adjusted gross income is the total of the following amounts. Irs 1040 The adjusted gross income amount you used to figure the deduction claimed on the return. Irs 1040 The amounts from lines 3 through 5 of the worksheet. Irs 1040 The NOL deduction for the NOL year entered at the top of the worksheet and for later years. Irs 1040 Line 11. Irs 1040   Treat your NOL deduction for the NOL year entered at the top of the worksheet and for later years as a positive amount. Irs 1040 Add it to your adjusted gross income. Irs 1040 Enter the result on line 11. Irs 1040 Line 20. Irs 1040   Is your modified adjusted gross income from line 13 of this worksheet more than $100,000 ($50,000 if married filing separately)?   □ Yes. Irs 1040 Your deduction is limited. Irs 1040 Refigure your deduction using the Mortgage Insurance Premiums Deduction Worksheet in the 2013 Instructions for Form 1045. Irs 1040 On line 2 of the Mortgage Insurance Premiums Deduction Worksheet, enter the amount from line 13 of this worksheet. Irs 1040   □ No. Irs 1040 Your deduction is not limited. Irs 1040 Enter the amount from line 19 on line 20 and enter -0- on line 21. Irs 1040 Line 23. Irs 1040   If you had a contributions carryover from 2012 to 2013 and your NOL deduction includes an amount from an NOL year before 2012, you may have to reduce your contributions carryover. Irs 1040 Reduce the contributions carryover by the amount of any adjustment you made to your 2012 charitable contributions deduction when figuring your NOL carryover to 2013. Irs 1040 Use the reduced contributions carryover to figure the amount to enter on line 23. Irs 1040 Please click here for the text description of the image. Irs 1040 Worksheet for NOL Carryover Worksheet for NOL Carryover (Continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Irs 1040 Free help with your tax return. Irs 1040   You can get free help preparing your return nationwide from IRS-certified volunteers. Irs 1040 The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Irs 1040 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs 1040 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs 1040 In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Irs 1040 To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Irs 1040 gov, download the IRS2Go app, or call 1-800-906-9887. Irs 1040   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs 1040 To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs 1040 aarp. Irs 1040 org/money/taxaide or call 1-888-227-7669. Irs 1040 For more information on these programs, go to IRS. Irs 1040 gov and enter “VITA” in the search box. Irs 1040 Internet. Irs 1040    IRS. Irs 1040 gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Irs 1040 Download the free IRS2Go app from the iTunes app store or from Google Play. Irs 1040 Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Irs 1040 Check the status of your 2013 refund with the Where's My Refund? application on IRS. Irs 1040 gov or download the IRS2Go app and select the Refund Status option. Irs 1040 The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs 1040 Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Irs 1040 You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs 1040 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs 1040 Use the Interactive Tax Assistant (ITA) to research your tax questions. Irs 1040 No need to wait on the phone or stand in line. Irs 1040 The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Irs 1040 When you reach the response screen, you can print the entire interview and the final response for your records. Irs 1040 New subject areas are added on a regular basis. Irs 1040  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Irs 1040 gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Irs 1040 You can use the IRS Tax Map to search publications and instructions by topic or keyword. Irs 1040 The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Irs 1040 When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Irs 1040 Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Irs 1040 You can also ask the IRS to mail a return or an account transcript to you. Irs 1040 Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Irs 1040 gov or by calling 1-800-908-9946. Irs 1040 Tax return and tax account transcripts are generally available for the current year and the past three years. Irs 1040 Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Irs 1040 Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Irs 1040 If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Irs 1040 Check the status of your amended return using Where's My Amended Return? Go to IRS. Irs 1040 gov and enter Where's My Amended Return? in the search box. Irs 1040 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs 1040 It can take up to 3 weeks from the date you mailed it to show up in our system. Irs 1040 Make a payment using one of several safe and convenient electronic payment options available on IRS. Irs 1040 gov. Irs 1040 Select the Payment tab on the front page of IRS. Irs 1040 gov for more information. Irs 1040 Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Irs 1040 Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs 1040 gov. Irs 1040 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Irs 1040 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs 1040 gov. Irs 1040 Request an Electronic Filing PIN by going to IRS. Irs 1040 gov and entering Electronic Filing PIN in the search box. Irs 1040 Download forms, instructions and publications, including accessible versions for people with disabilities. Irs 1040 Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Irs 1040 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Irs 1040 An employee can answer questions about your tax account or help you set up a payment plan. Irs 1040 Before you visit, check the Office Locator on IRS. Irs 1040 gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Irs 1040 If you have a special need, such as a disability, you can request an appointment. Irs 1040 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Irs 1040 Apply for an Employer Identification Number (EIN). Irs 1040 Go to IRS. Irs 1040 gov and enter Apply for an EIN in the search box. Irs 1040 Read the Internal Revenue Code, regulations, or other official guidance. Irs 1040 Read Internal Revenue Bulletins. Irs 1040 Sign up to receive local and national tax news and more by email. Irs 1040 Just click on “subscriptions” above the search box on IRS. Irs 1040 gov and choose from a variety of options. Irs 1040 Phone. Irs 1040    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Irs 1040 Download the free IRS2Go app from the iTunes app store or from Google Play. Irs 1040 Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Irs 1040 gov, or download the IRS2Go app. Irs 1040 Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Irs 1040 The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs 1040 Most VITA and TCE sites offer free electronic filing. Irs 1040 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Irs 1040 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Irs 1040 Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Irs 1040 If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Irs 1040 The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs 1040 Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs 1040 Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Irs 1040 The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs 1040 Note, the above information is for our automated hotline. Irs 1040 Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Irs 1040 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Irs 1040 You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs 1040 It can take up to 3 weeks from the date you mailed it to show up in our system. Irs 1040 Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Irs 1040 You should receive your order within 10 business days. Irs 1040 Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Irs 1040 If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Irs 1040 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Irs 1040 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Irs 1040 These individuals can also contact the IRS through relay services such as the Federal Relay Service. Irs 1040 Walk-in. Irs 1040   You can find a selection of forms, publications and services — in person. Irs 1040 Products. Irs 1040 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs 1040 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Irs 1040 Services. Irs 1040 You can walk in to your local TAC for face-to-face tax help. Irs 1040 An employee can answer questions about your tax account or help you set up a payment plan. Irs 1040 Before visiting, use the Office Locator tool on IRS. Irs 1040 gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Irs 1040 Mail. Irs 1040   You can send your order for forms, instructions, and publications to the address below. Irs 1040 You should receive a response within 10 business days after your request is received. Irs 1040 Internal Revenue Service 1201 N. Irs 1040 Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Irs 1040 The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs 1040 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Irs 1040   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Irs 1040 We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Irs 1040 You face (or your business is facing) an immediate threat of adverse action. Irs 1040 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Irs 1040   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Irs 1040 Here's why we can help: TAS is an independent organization within the IRS. Irs 1040 Our advocates know how to work with the IRS. Irs 1040 Our services are free and tailored to meet your needs. Irs 1040 We have offices in every state, the District of Columbia, and Puerto Rico. Irs 1040   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Irs 1040   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Irs 1040 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Irs 1040 Low Income Taxpayer Clinics Low Income
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Tennessee Department of Commerce and Insurance

Website: Tennessee Department of Commerce and Insurance

Address: Tennessee Department of Commerce and Insurance
Division of Consumer Affairs
500 James Robertson Pkwy., 12th Floor
Nashville, TN 37243-0600

Phone Number: 615-741-4737

Toll-free: 1-800-342-8385 (TN)

Tennessee Office of the Attorney General

Website: Tennessee Office of the Attorney General

Address: Tennessee Office of the Attorney General
Consumer Advocate and Protection Division
PO Box 20207
Nashville, TN 37202-0207

Phone Number: 615-741-1671

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Financial Institutions

Website: Department of Financial Institutions

Address: Department of Financial Institutions
Consumer Resources Division
414 Union St., Suite 1000
Nashville, TN 37219

Phone Number: 615-253-2023

Toll-free: 1-800-778-4215 (TN)

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Commerce and Insurance

Website: Department of Commerce and Insurance

Address: Department of Commerce and Insurance
Consumer Insurance Services
500 James Robertson Pkwy., 4th Floor
Nashville, TN 37243-0574

Phone Number: 615-741-2218

Toll-free: 1-800-342-4029 (TN)

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Department of Commerce and Insurance

Website: Department of Commerce and Insurance

Address: Department of Commerce and Insurance
Securities Division
500 James Robertson Pkwy.
Nashville, TN 37243-0575

Phone Number: 615-741-2947

Toll-free: 1-800-863-9117 (TN)

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Regulatory Authority

Website: Regulatory Authority

Address: Regulatory Authority
Consumer Services Division
460 James Robertson Pkwy.
Nashville, TN 37243-0505

Phone Number: 615-741-2904

Toll-free: 1-800-342-8359 (Consumer Services)

TTY: 1-888-276-0677

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The Irs 1040

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