2023 Schedule NOL2 Instructions 

Purpose of Schedule NOL2 
The 2023 Schedule NOL2 is used by an individual, estate, or trust to compute your allowable net operating loss (NOL) carryforward 
deduction and Wisconsin modified taxable income. Part I of Schedule NOL2 is used to figure the amount of NOL that may be 
deducted  on  your  2023  Wisconsin  tax  return.  The  deduction  for  a  Wisconsin  NOL  carryforward  may  not  be  more  than  your 
Wisconsin taxable income as computed before any deduction for the NOL. If you are filing Form X-NOL, Carryback of Wisconsin 
Net Operating Loss (NOL), to carry back an NOL, see the instructions for Form X-NOL to determine the allowable deduction for 
the NOL carryback. 

Part II of Schedule NOL2 is used to compute your Wisconsin modified taxable income. Your Wisconsin modified taxable income 
is your Wisconsin income (for example, line 7 of 2023 Form 1) with the following adjustments: 
(1) You cannot claim an NOL deduction
(2) You cannot claim a capital gain exclusion for the exclusion for capital gain on the sale of investments held at least 5 years in
    a qualified Wisconsin business or the exclusion for capital gain on the sale of investments held at least 5 years in a Wisconsin
    qualified opportunity fund
(3) You cannot claim a deduction for a net capital loss
(4) Wisconsin modified taxable income cannot be less than zero

Who Must File Schedule NOL2 
Schedule NOL2 must be filed by individuals, estates, and trusts who incur an NOL in a taxable year and will claim an NOL 
deduction in 2023. Include Schedule NOL2 with your Form 1, 1NPR, 2, or X-NOL in the year you wish to claim an NOL deduction. 

Specific Instructions 
  Part I – Allowable Deduction for a Wisconsin NOL Carryforward 

  Line 1   If you are filing Form 1NPR, do not fill in any amount on this line. Instead, see the instructions for line 3. Estates and 
trusts fill in the amount from line 3 of Wisconsin Form 2. 

  Line 2   If you are filing Form 1NPR, do not fill in any amount on this line (see line 3 instructions). Estates and trusts fill in the 
amount from line 4 of Form 2. Do not include any amount of NOL in this figure. 

  Line 3   If you are filing Form 1NPR, fill in on line 3 the amount from line 16, column B, of Form 1NPR, less the amount on line 
29, column B, of Form 1NPR (not including any amount of the NOL deduction). 

  Line 4  If you are filing Form 1NPR, use the following formula to compute the standard deduction to fill in on line 4. 

Exception:         If your federal adjusted gross income (FAGI) from line 31, column A, of Form 1NPR is less than the amount on line 3 
of Part I, do not use the following formula. The standard deduction to fill in on line 4 of Part I is the standard deduction from the 
table in the 2023 Form 1NPR booklet based on your filing status and FAGI. 

                              Amount from line 3           Standard deduction        Amount 
                              of Part I                    from table in Form 1NPR   to fill in 
                                                        x                          = 
                              FAGI from line 31            booklet based on your     on line 4 
                              of Form 1NPR                 filing status and FAGI    of Part I 

Estates and trusts do not fill in any amount on line 4. 

  Line 6  If you are filing Form 1, you will first have to complete line 10c of Form 1 before you can complete Part I. Fill in the amount 
from line 10c of Form 1 on line 6 of Part I. 

If you are filing Form 1NPR, you will first have to complete lines 36a-c of Form 1NPR. Then use the following formula to determine 
the amount to fill in on line 6 of Part I. 

Exception:         If your FAGI from line 31, column A, of Form 1NPR is less than the amount on line 3 of Part I, do not use the following 
formula. Fill in the amount from line 36c of Form 1NPR on line 6 of Part I. 

I-155  (R.  11-23)                                                                              Wisconsin Department of Revenue 

                      Amount from line 3                     Deduction for   Amount 
                                          of Part I           exemptions     to fill in 
                                                        x                  = 
                      FAGI from line 31,                  from line 36c of   on line 6 
                      of Form 1NPR                            Form 1NPR      of Part I 

Estates and trusts do not fill in any amount on line 6. 

 Line 9  If you are filing Form 1, enter the amount from line 9 of Part I on line 23 of Schedule SB, Form 1 – Subtractions from 
Income, as a positive number. If you are filing Form 1NPR, enter the amount from line 9 of Part I on line 57 of      Schedule M, 
Additions to and Subtractions from Income. Estates and trusts fill in the amount from line 9 of Part I on line 25 of Schedule 2M, 
Form 2 – Additions to and Subtractions from Income, as a positive number. If filing Form X-NOL, see the instructions for line 1 of 
Form X-NOL. 

  Part II – Wisconsin Modified Taxable Income 

  Line 1   Fill in your Wisconsin income from Form 1, line 7. For individuals filing Form 1NPR, Wisconsin income is the amount 
from line 30, column B, of Form 1NPR. Estates and trusts fill in the amount from line 5 of Form 2. 

If you are determining modified taxable income for a carryback year, the amount to enter on line 1 is the amount from line 2, 
column B, of Form X-NOL; the amount from line 30 of the revised Form 1NPR that was attached to Form X-NOL; or, for estates 
and trusts, the amount from line 6, column B, of Form X-NOL. 

  Line 2   Fill in as a positive number the amount of NOL carryforward deducted on your Wisconsin return. If you are determining 
modified taxable income for a carryback year, the amount to enter on line 2 is the amount from line 1 of Form X-NOL. 

  Line 3  Fill in your Wisconsin capital gain exclusion as a positive number. This will generally be the amount from line 26 of 2023 
Schedule WD (line 26 of Schedule 2WD (Form 2) for estates and trusts). 

Note: Include on line 3 the amount of long-term capital gain that qualified for an exclusion because it was from the sale of an 
investment held at least 5 years in a qualified Wisconsin business or because it was from the sale of an investment held at least 
5 years in a Wisconsin qualified opportunity fund. 

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). 

  Line 4  Fill in your Wisconsin capital loss deduction as a positive number. This is the amount from line 28 of your 2023 Schedule 
WD (line 28 of Schedule 2WD (Form 2) for estates and trusts). 

  Line 6  Fill in your Wisconsin standard deduction based on the amount on line 5 for your filing status. Full-year residents use the 
standard deduction table in the 2023 Form 1 instruction booklet. If you are filing Form 1NPR, use the formula below to determine 
the standard deduction to fill in on line 6. 

Exception: If your federal adjusted gross income (FAGI) from line 31, column A, of Form 1NPR is less than the amount on line 5 
of Part II, do not use the following formula. The standard deduction to fill in on line 6 of Part II is the amount from line 34c of your 
Form 1NPR. 

                      Amount from line 5                      Standard       Standard        
                                          of Part II          deduction      deduction 
                                                        x                  = 
                      FAGI from line 31                      from line 34c   to fill in 
                      of Form 1NPR                          of Form 1NPR     on line 6 

Estates and trusts fill in -0- on line 6. 

  Line 8  Fill in your deduction for exemptions. For full-year Wisconsin residents, this is the amount from line 10c of Form 1. If you 
are filing Form 1NPR, use the following formula to determine your deduction for exemptions. 

Exception: If your FAGI from line 31, column A, of Form 1NPR is less than the amount on line 5 of Part II, do not use the following 
formula. The deduction for exemptions to fill in on line 8 of Part II is the amount from line 36c of your Form 1NPR. 

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                     Amount from line 5                 Deduction for           Deduction for 
                                           of Part II   exemptions              exemptions 
                                                      x               = 
                     FAGI from line 31                  from line 36c           to fill in 
                     of Form 1NPR                       of Form 1NPR            on line 8 
 
 Estates and trusts fill in -0- on line 8. 
 
   Line 9  This is your Wisconsin modified taxable income for 2023. Enter this amount on the line for “loss used” on Schedule NOL3 
 as applicable. 
 
                                                      Applicable Laws and Rules 
 This  document  provides  statements  or  interpretations  of  the  following  laws  and  regulations  enacted  as  of  November 29, 2023: 
 ch. 71, Wis. Stats. 

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