Enlarge image
2023 Schedule NOL1 Instructions
Purpose of Schedule NOL1
The 2023 Schedule NOL1 is used by an individual, estate, or trust to compute your net operating loss (NOL) based on your 2023
tax return. If your trade or business deductions for the year are more than your income for the year, you may have a Wisconsin
NOL. Attach Schedule NOL1 to your Wisconsin return for any year you compute an NOL. You should compute your federal NOL
before computing your Wisconsin NOL, because computation of the Wisconsin NOL is based on the federal NOL. For information
on computing the federal NOL, see federal Form 1045, Application for Tentative Refund, and the instructions.
For NOLs incurred in taxable years beginning in 2023, you may carry the NOL back two years and then forward for up to 20 years.
Or, you may elect to waive the carryback period and only carry the NOL forward for up to 20 years. If you choose to carry your
NOL back, complete 2021 and/or 2022 Form X-NOL, Carryback of Wisconsin Net Operating Loss (NOL).
Schedule NOL2 is used to compute your Wisconsin modified taxable income and allowable deduction for a Wisconsin NOL
carryforward. Schedule NOL3 is a record of your carryforwards and carrybacks. These schedules are required to be submitted
with your return each year you claim a Wisconsin NOL carryforward or carryback.
Who Must File Schedule NOL1
Schedule NOL1 must be filed by individuals, estates, and trusts who incur an NOL for the taxable year and will claim an NOL
carryback or carryforward in other years. Include Schedule NOL1 with your Form 1, 1NPR, or 2 in the year you incur a loss.
General Instructions
You must have a federal NOL in order to have a Wisconsin NOL. The federal NOL is the starting point for computing the Wisconsin
NOL. Although Wisconsin law provides that the federal NOL is adjusted for certain addition and subtraction modifications, the
modifications operate to increase or decrease the amount of NOL available for Wisconsin purposes. Modifications may not be
used to create a Wisconsin NOL where no federal NOL exists.
Exception: If a tax-option (S) corporation shareholder’s allowable deduction for their pro rata share of the corporation’s losses
results in a loss on the shareholder’s Wisconsin income tax return, the loss generally will be treated in the same manner as other
Wisconsin NOLs. However, unlike other Wisconsin NOLs, Wisconsin tax-option (S) corporation losses may be claimed even if the
shareholder has no federal NOL.
Specific Instructions
Line 1 Fill in your Wisconsin income from Form 1, line 7. For individuals filing Form 1NPR (nonresident and part-year resident
return), Wisconsin income is the amount from line 16, column B, of Form 1NPR, less the amount on line 29, column B, Form
1NPR.
Line 2 Fill in your allowable federal standard deduction regardless of whether you claimed the standard deduction on your
federal return. Use the federal standard deduction allowable based on your federal filing status. For 2023, this generally is:
• Single – $13,850
• Married filing joint return or qualifying surviving spouse – $27,700
• Married filing separate return – $13,850
• Head of household – $20,800
In some cases, your allowable federal standard deduction may be more or less than the amount indicated above. See the
instructions for your federal income tax return to determine your allowable standard deduction if (1) you can be claimed as a
dependent on another person’s return, (2) you (and/or your spouse) are 65 years of age or older or legally blind, (3) you are filing
a tax return with a short tax year, (4) you are a nonresident or dual status alien during the year, or (5) you incurred a net disaster
loss during the year.
Line 4 Fill in your Wisconsin capital gain exclusion as a positive number. This will generally be the amount from line 26 of
Schedule WD (line 26 of Schedule 2WD (Form 2) for estates and trusts). However, if you filed Wisconsin Form 1, your only capital
gain or loss was a capital gain distribution reported on line 7 of federal Form 1040 or 1040-SR, and you did not file Wisconsin
Schedule WD, fill in the amount of capital gain exclusion from line 5 of Schedule SB (Form 1). Include on line 4 as a positive
number the (1) amount of any subtraction claimed for deferral of long-term capital gain from the sale of an asset due to the
investment of the gain in a qualified Wisconsin business (amount from line 7 of Schedule CG), (2) the capital gain exclusion from
the sale of an investment in a qualified Wisconsin business held at least 5 years (amount from line 15a of Schedule WD), and (3)
I-154 (R. 11-23)
