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            Publication 536
            Cat. No. 46569U                                                    Contents
                                                                               Future Developments           . . . . . . . . . . . . 1
Department 
of the      Net Operating                                                      What’s New        . . . . . . . . . . . . . . . . . . 1
Treasury
Internal                                                                       Reminders . . . . . . . . . . . . . . . . . . . 1
Revenue     Losses (NOLs) 
Service                                                                        Introduction . . . . . . . . . . . . . . . . . . 2
            for                                                                NOL Steps . . . . . . . . . . . . . . . . . . . 2
                                                                               How To Figure an NOL            . . . . . . . . . . . 2
            Individuals,                                                       Worksheet 1. Figuring Your NOL . . . . 4
                                                                               When To Use an NOL            . . . . . . . . . . . . 3
            Estates, and                                                       Waiving the Carryback Period                . . . . . 5
                                                                               How To Carry an NOL Back or 
                                                                                           Forward . . . . . . . . . . . . . . . . 5
            Trusts
                                                                               How To Claim an NOL Deduction . . . . . 5
                                                                               Deducting a Carryback               . . . . . . . . . 5
                                                                               Deducting a Carryforward . . . . . . . . 6
            For use in preparing                                               Change in Marital Status              . . . . . . . . 6
                                                                               Change in Filing Status             . . . . . . . . . 6
            2022 Returns                                                       How To Figure an NOL Carryover . . . . . 7

                                                                               NOL Carryover From 2022 to 2023               . . . . 7
                                                                               Worksheet 2 Instructions              . . . . . . . . 7
                                                                               Excess Business Loss            . . . . . . . . . . . 8
                                                                               How To Get Tax Help           . . . . . . . . . . . . 9
                                                                               Index       . . . . . . . . . . . . . . . . . . . . . 12

                                                                               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.

                                                                               What’s New
                                                                               Limitation  on  excess  business  losses  of 
                                                                               noncorporate  taxpayers  extended.              The  In-
                                                                               flation Reduction Act of 2022 has extended the 
                                                                               limitation of excess business losses of noncor-
                                                                               porate  taxpayers  under  section  461(l)  through 
                                                                               tax year 2028.

                                                                               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 
              Get forms and other information faster and easier at:            NOL deduction for tax years beginning after De-
              • IRS.gov (English)         • IRS.gov/Korean (한국어)               cember  31,  2020,  cannot  exceed  the  sum  of: 
              • IRS.gov/Spanish (Español) • IRS.gov/Russian (Pусский)          (1) the NOLs carried to the year from tax years 
              • IRS.gov/Chinese (中文)      • IRS.gov/Vietnamese (Tiếng Việt)    beginning before January 1, 2018; plus, (2) the 
                                                                               lesser of: (a) the NOLs carried to the year from 

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tax years beginning after December 31, 2017, forward or 3 years after the carryforward ex- Step 1. Complete your tax return for the year.
or (b) 80% of the excess (if any) of taxable in- pires. You may have an NOL if a negative amount ap-
come computed without regard to deductions pears in these cases.
for NOLs, or Qualified Business Income (QBI), You should attach all required docu- Individuals—You subtract your standard
or section 250 deductions, over the NOLs car- TIP ments to the Form 1045 or Form •
deduction or itemized deductions from
ried to the year from tax years beginning before 1040-X. For details, see the instruc- your adjusted gross income (AGI).
January 1, 2018. tions for Form 1045 or Form 1040-X. Estates and trusts—You combine taxable
•
Annual losses limited. The Tax Cuts and income, charitable deductions, income dis-
Jobs Act (TCJA), section 11012, as amended What is not covered in this publication? tribution deduction, and exemption
by the CARES Act, section 2304, revised sec- The following topics are not covered in this pub- amounts from your Form 1041.
tion 461(l) to limit the amount of losses from the lication.
trades or businesses of noncorporate taxpayers • Bankruptcies. See Pub. 908, Bankruptcy Step 2. Determine whether you have an NOL
that the taxpayer can claim each year, begin- Tax Guide. and its amount. See How To Figure an NOL,
ning after 2020 and ending before 2026. You • NOLs of corporations. See Pub. 542, Cor- later. If you do not have an NOL, stop here.
can't deduct net losses in excess of a threshold porations.
amount in the current year. The amount of the Step 3. If applicable, decide whether to carry
excess business loss is treated as an NOL for Comments and suggestions. We welcome the NOL back to a past year, or to waive the
the current year for purposes of determining your comments about this publication and sug- carryback period and instead carry the NOL for-
any NOL carryover for later tax years. Use Form gestions for future editions. ward to a future year. See When To Use an
461 to figure the excess business loss. Also see You can send us comments through NOL, later.
Worksheet 3, later. IRS.gov/FormComments. Or, you can write to
Photographs of missing children. The IRS is the Internal Revenue Service, Tax Forms and Step 4. Deduct the NOL in the carryback or
a proud partner with the National Center for Publications, 1111 Constitution Ave. NW, carryforward year. See How To Claim an NOL
Missing & Exploited Children® (NCMEC). Pho- IR-6526, Washington, DC 20224. Deduction, later.
tographs of missing children selected by the Although we can’t respond individually to
Center may appear in this publication on pages each comment received, we do appreciate your Step 5. Determine the amount of your unused
that would otherwise be blank. You can help feedback and will consider your comments and NOL. See How To Figure an NOL Carryover,
bring these children home by looking at the suggestions as we revise our tax forms, instruc- later. Carry the unused NOL to the next carry-
photographs and calling 1-800-THE-LOST tions, and publications. Don’t send tax ques- back or carryforward year and begin again at
(1-800-843-5678) if you recognize a child. tions, tax returns, or payments to the above ad- Step 4.
dress.
Note. If your NOL deduction includes more
Getting answers to your tax questions. than one NOL amount, apply Step 5 separately
Introduction If you have a tax question not answered by this to each NOL amount, starting with the amount
If your deductions for the year are more than publication or the How To Get Tax Help section from the earliest year.
your income for the year, you may have a net at the end of this publication, go to the IRS In-
operating loss (NOL). An NOL year is the year teractive Tax Assistant page at IRS.gov/
in which an NOL occurs. You can use an NOL Help/ITA where you can find topics by using the How To Figure an NOL
by deducting it from your income in another search feature or viewing the categories listed.
year or years. If your deductions for the year are more than
Getting tax forms, instructions, and pub
What this publication covers. This publica- lications. Go to IRS.gov/Forms to download your income for the year, you may have an
tion discusses NOLs for individuals, estates, current and prior-year forms, instructions, and NOL.
and trusts. It covers: publications. There are rules that limit what you can de-
• How to figure an NOL, Ordering tax forms, instructions, and duct when figuring an NOL. In general, the fol-
• When to use an NOL, publications. Go to IRS.gov/OrderForms to lowing items are not allowed when figuring an
• How to claim an NOL deduction, order current forms, instructions, and publica- NOL.
• How to figure an excess business loss, tions; call 800-829-3676 to order prior-year • Capital losses in excess of capital gains.
and forms and instructions. The IRS will process • The section 1202 exclusion of the gain
• How to figure an NOL carryover. your order for forms and publications as soon from the sale or exchange of qualified
To have an NOL, your loss must generally as possible. Don’t resubmit requests you’ve al- small business stock.
be caused by deductions from your: ready sent us. You can get forms and publica- • Nonbusiness deductions in excess of non-
• Trade or business, tions faster online. business income.
• Work as an employee (although not de- • The NOL deduction.
• The section 199A deduction for qualified
ductible for most taxpayers for 2018 Useful Items business income.
through 2025), You may want to see:
• Casualty and theft losses resulting from a
Worksheet 1. Figuring Your NOL. Use Work-
federally declared disaster, Form (and Instructions) sheet 1 to figure your NOL. The following dis-
• Moving expenses (although not deductible
for most taxpayers for 2018 through 2025), 1040-X 1040-X Amended U.S. Individual Income cussion explains Worksheet 1. See the Instruc-
or Tax Return tions for Form 1045. If line 1 is a negative
amount, you may have an NOL.
• Rental property. 1045 1045 Application for Tentative Refund
Nonbusiness capital losses (line 2). Don’t
common reason for an NOL.
A loss from operating a business is the most 461 461 Limitation on Business Losses include on this line any section 1202 exclusion
Partnerships and S corporations generally amounts (even if entered as a loss on Sched-
cannot use an NOL. However, partners or ule D (Form 1041)).
shareholders can use their separate shares of
the partnership's or S corporation's business in- NOL Steps Nonbusiness deductions (line 6). Enter as a
come and business deductions to figure their in- positive number on line 6 deductions that are
dividual NOLs. Follow Steps 1 through 5 to figure and use your not connected to your trade or business or your
NOL. employment. Examples of deductions not rela-
Keeping records. You should keep records ted to your trade or business are:
for any tax year that generates an NOL for 3 • Alimony paid,
years after you have used the carryback/carry-
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• Deductions for contributions to an individ- • Ordinary gain from the sale or other dispo- The following items are not allowed on
ual retirement account (IRA) or a self-em- sition of business real estate or deprecia- Worksheet 1.
ployed retirement plan, ble business property.
• Health savings account deduction, • Your share of business income from a part- Nonbusiness net short-term capital loss . . . . $1,000
• Archer medical savings account deduc- nership or an S corporation. Nonbusiness deductions
tion, (standard deduction, $12,950) minus
• Most itemized deductions (except for Adjustment for section 1202 exclusion nonbusiness income (interest, $425) . . . . . . . 12,525
casualty and theft losses resulting from a (line 17). Enter as a positive number on line 17 Total adjustments to net loss $13,525
federally declared disaster and state in- any gain you excluded under section 1202 on
come tax on trade or business income), the sale or exchange of qualified small business
• The standard deduction, and stock. Therefore, your NOL for 2022 is figured as
• Charitable contributions if you take the follows.
standard deduction. Adjustments for capital losses (lines 19–
22). The amount deductible for capital losses is Your total 2022 income . . . . . . . . . . . . . . $3,650
Do not enter business deductions on line 6. limited based on whether the losses are busi- Less:
These are deductions that are connected to ness capital losses or nonbusiness capital los- Your original 2022 total
your trade or business. They include the follow- ses. deductions . . . . . . . . . . . . . $18,950
ing. Reduced by the disallowed
• State income tax on income from your You can deduct your nonbusiness capital
trade or business (including wages, salary, losses (line 2) only up to the amount of your items . . . . . . . . . . . . . . . . − 13,525 − 5,425
and unemployment compensation). nonbusiness capital gains without regard to any Your NOL for 2022 $1,775
• Moving expenses for members of the section 1202 exclusion (line 3). If your nonbusi-
Armed Forces on active duty (see Pub. ness capital losses are more than your nonbusi-
521). ness capital gains without regard to any section
• Educator expenses. 1202 exclusion, you cannot deduct the excess. When To Use an NOL
• The deduction for the deductible part of You can deduct your business capital losses
self-employed health insurance and the (line 11) only up to the total of: If you have an NOL for a tax year ending in
deduction for the deductible part of • Your nonbusiness capital gains that are 2022, only the farming loss portion, if any, can
self-employment tax. more than the total of your nonbusiness be carried back.
• Rental losses. capital losses and excess nonbusiness de-
• Loss on the sale or exchange of business ductions (line 10), and NOL year. This is the year in which the NOL
real estate or depreciable property. • Your total business capital gains without occurred.
• Your share of a business loss from a part- regard to any section 1202 exclusion
nership or an S corporation. (line 12). Exception to the No Carryback Rule. Farm-
• Ordinary loss on the sale or exchange of ing losses, defined next, qualify for a 2-year car-
section 1244 (small business) stock. NOLs from other years (line 23). You cannot ryback period. Only the farming loss portion of
• Ordinary loss on the sale or exchange of deduct any NOL carryovers or carrybacks from an NOL can be carried back 2 years. The 80%
stock in a small business corporation or a other years. Enter the total amount of your NOL limitation rule does not apply to a carryback pe-
small business investment company. deduction for losses from other years. riod before 2021.
• If you itemize your deductions, casualty Farming business. A farming business is
and theft losses resulting from a federally Worksheet 1. Figuring Your a trade or business involving cultivation of land
declared disaster (even if they involve non- NOL Example or the raising or harvesting of any agricultural or
business property). horticultural commodity. A farming business
• Loss on the sale of accounts receivable (if The following example describes how to figure can include operating a nursery or sod farm or
you use an accrual method of accounting). an NOL. raising or harvesting most ornamental trees or
• Interest and litigation expenses on state trees bearing fruit, nuts, or other crops. The
and federal income taxes related to your Example. You are in the retail record busi- raising, shearing, feeding, caring for, training,
business. ness. You are single and have the following in- and management of animals is also considered
• Unrecovered investment in a pension or come and deductions on your Form 1040 for a farming business.
annuity claimed on a decedent's final re- 2022. A farming business does not include con-
turn. tract harvesting of an agricultural or horticultural
• Payment by a federal employee to buy commodity grown or raised by someone else. It
back sick leave used in an earlier year. INCOME
also does not include a business in which you
Wages from part-time job . . . . . . . . . . . . . $1,225 merely buy or sell plants or animals grown or
Nonbusiness income (line 7). Enter on line 7 Interest on savings . . . . . . . . . . . . . . . . . . 425 raised entirely by someone else.
only income that is not related to your trade or Net long-term capital gain on sale of real
business or your employment. This includes the estate used in business . . . . . . . . . . . . . . . 2,000
Farming loss. A farming loss is the smaller of:
following. Your total income $3,650 • The amount that would be the NOL for the
• Your taxable IRA distributions. tax year if only income and deductions
• Pension benefits. from farming businesses (as defined in
• Social security benefits. DEDUCTIONS section 263A(e)(4)) were taken into ac-
• Annuity income. Net loss from business (gross income of count, or
• Dividends. $67,000 minus expenses of $72,000) . . . . $5,000 • The NOL for the tax year.
• Interest on investments. Net short-term capital loss
• Your share of nonbusiness income from a on sale of stock . . . . . . . . . . . . . . . . . . . . 1,000 Annual losses limited for 2022. Excess busi-
partnership or an S corporation. Standard deduction . . . . . . . . . . . . . . . . . 12,950 ness losses for noncorporate taxpayers are
Do not include on line 7 the income you re- Your total deductions $18,950 limited for tax years 2021 through 2028. Gener-
ceive from your trade or business or your em- ally, any disallowed loss is treated as an NOL
ployment. This includes the following. Your deductions exceed your income by carryover to later years. Also, excess business
• Salaries and wages. $15,300 ($18,950 − $3,650). However, to figure losses are now computed without regard to any
• Self-employment income. whether you have an NOL, certain deductions deduction allowed under IRC section 172 or
• Unemployment compensation. are not allowed. You use Worksheet 1 to figure 199A and without regard to any deductions,
• Rental income. your NOL. gross income, or gains attributable to any trade

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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, later). Enter as a positive number . . . . . . . . . . . . . . . . . . . . .                              6.                               
7. Nonbusiness income other than capital gains (see 
       Nonbusiness income under How To Figure an 
       NOL, later) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      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 2022 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 2022 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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or business of performing services as an em- For nonfarming businesses, since you can’t NOL resulting in no taxable income. If your
ployee. You can’t deduct net losses in excess carry the NOL to an earlier year, your NOL de- NOL is more than the taxable income of the
of a threshold amount in the current year. duction for tax years beginning after December year you carry it to (figured before deducting the
For 2022, excess means total (modified) 31, 2020, cannot exceed the sum of: NOL), you will generally have an NOL carryover
business deductions over the sum of total gross 1. The NOLs carried to the year from tax to the next year. See How To Figure an NOL
business income plus $270,000 ($540,000 for years beginning before January 1, 2018; Carryover, later, to determine how much NOL
joint returns). The excess is treated as an NOL plus you have used and how much you carry to the
to be carried forward (or carried back for farm- next year.
er’s excess business losses). Further, when 2. The lesser of:
carryforwards can be used, they can only offset Deducting a Carryback
80% of taxable income in future years. While a. The NOLs carried to the year from tax
the limitation for excess business loss applies years beginning after December 31, 2017,
to calculate the amount to deduct as an NOL in or If you carry back your NOL, you can use either
the loss year, the deduction is not limited to b. 80% of the excess (if any) of taxable in- Form 1045 or Form 1040-X. You can get your
80% of modified adjusted gross income in the come computed without regard to deduc- refund faster by using Form 1045, but you have
previous (carryback) year(s). So the full amount tions for NOLs, or Qualified Business In- a shorter time to file it. You can use Form 1045
of modified adjusted gross income in previous come (QBI), or section 250 deductions, to apply an NOL to all carryback years. If you
years is used to absorb the loss. See Excess over the NOLs carried to the year from tax use Form 1040-X, you must use a separate
Business Loss, later. years beginning before January 1, 2018. Form 1040-X for each carryback year to which
you apply the NOL.
Only NOLs arising after 2017 and carried
Waiving the Carryback forward to a year after 2020 are subject to the Estates and trusts that do not file Form 1045
Period 80%-of-taxable-income limit. The total amount must file an amended Form 1041 (instead of
of any NOL deduction for 2021 or thereafter that Form 1040-X) for each carryback year to which
You can choose not to carry back your farming is attributable to NOLs from tax years after 2017 NOLs are applied. Use a copy of the appropri-
NOL. If you make this choice, then you can can’t exceed 80% of taxable income without re- ate year's Form 1041, check the “Net operating
carry your NOL forward indefinitely until it is fully gard to the NOL deduction or sections 199A or loss carryback” box, and follow the Form 1041
absorbed. 250. instructions for amended returns. Include the
NOL deduction with other deductions not sub-
To make this choice, attach a statement to Example. You started your farming busi- ject to the 2% limit (line 15a). Also, see the spe-
your original return filed by the due date (includ- ness as a sole proprietor in 2022 and had a cial procedures for filing an amended return due
ing extensions) for the NOL year. This state- $42,000 NOL for the year. No part of this NOL to an NOL carryback, explained under Form
ment must show that you are choosing to waive is from another business activity. There are no 1040-X, later.
the carryback period under section 172(b). NOL carryovers or carrybacks to 2020 and Carrying back an NOL to an earlier tax
2021 other than the 2022 NOL. year may create an alternative mini-
If you filed your original return on time but CAUTION! mum tax (AMT) liability for that earlier
did not file the statement with it, you can make Carryback/ Unused Loss year. This may be true even if there was no
this choice on an amended return filed within 6 Year Carryover AMT liability on the tax return filed for that ear-
months of the due date of the return (excluding 2020 . . . . . . $42,000 $40,000 lier year.
extensions). Attach a statement to your amen-
ded return, and write “Filed pursuant to section 2021 . . . . . . $40,000 $0
Form 1045. You can apply for a quick refund
301.9100-2” at the top of the statement. 2022 (NOL by filing Form 1045. This form results in a tenta-
year) . . . . . . . .
Once you choose to waive the carryback pe- tive adjustment of tax in the carryback year.
riod, it is generally irrevocable. The election If the IRS refunds or credits an amount to
must be made by the due date of the return, in- you from Form 1045 and later determines that
cluding extensions. How To Claim the refund or credit is too much, the IRS may
assess and collect the excess immediately.
If you do not file this statement on time, an NOL Deduction Generally, you must file Form 1045 on or af-
! you cannot waive the carryback period. ter the date you file your tax return for the NOL
CAUTION If you have not already carried the NOL to an year, but not later than 1 year after the end of
earlier year, your NOL deduction for tax years the NOL year. If the last day of the NOL year
How To Carry an NOL Back beginning after December 31, 2020, cannot ex- falls on a Saturday, Sunday, or holiday, the form
ceed the sum of:
or Forward will be considered timely filed if postmarked on
1. The NOLs carried to the year from tax the next business day. For example, if you are a
If you choose to carry back a farming loss, you years beginning before January 1, 2018; calendar year taxpayer with a carryback from
must first carry the farming loss to the earliest plus 2022 to 2020, you must file Form 1045 on or af-
ter the date you file your tax return for 2022, but
year in the 2-year carryback period. If the farm- 2. The lesser of: no later than December 31, 2023.
ing loss is not used up, you can carry the rest to
the next earliest carryback year, and then on to a. The NOLs carried to the year from tax If you were affected by a federally de-
carryover years after the loss year, and so on. years beginning after December 31, 2017, ! clared disaster, you may have addi-
or CAUTION tional time to file your Form 1045. For
If you waive the carryback period or do not b. 80% of the excess (if any) of taxable in- more information, go to IRS.gov/
use up all of the farming loss in the carryback come computed without regard to deduc- DisasterTaxRelief.
period, you will have an NOL that can be car- tions for NOLs, or Qualified Business In-
ried forward indefinitely until used up. This NOL come (QBI), or section 250 deductions,
will be equal to the sum of what remains of the over the NOLs carried to the year from tax Form 1040-X. If you do not file Form 1045, you
farming loss, plus any nonfarm NOL, plus any years beginning before January 1, 2018. can file Form 1040-X to get a refund of tax be-
excess business loss for the NOL year. See Ex- cause of an NOL carryback. Generally, file
cess Business Loss, later. Start by carrying the If you carried the NOL to an earlier year, Form 1040-X for the carryback year within 3
NOL to the first tax year after the NOL year. If your NOL deduction is the carried over NOL mi- years after the due date, including extensions,
you do not use it up, carry the unused part to nus the NOL amount you used in the earlier for filing the return for the NOL year. For exam-
the next year. Continue to carry any unused year or years. If you carry more than one NOL ple, if you are a calendar year taxpayer, you
part of the NOL forward until the NOL is used to the same year, your NOL deduction is the to- must generally file a claim for refund because of
up. tal of these carrybacks and carryovers.
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an NOL carryback from 2019 by April 15, 2023 Finally, use your refigured taxable income 2. Figure your spouse's total tax as though
(3 years after the due date for the NOL return). (Form 1045, line 15, using the “After carryback” your spouse also had filed as married filing
column) to refigure your total tax liability. Refig- separately.
Filing Form 1040-X does not extend ure your income tax, your alternative minimum 3. Add the amounts in (1) and (2).
! the carryback period. See When To tax, and any credits that are based on or limited
CAUTION Use an NOL, earlier.
by your AGI, modified AGI (MAGI), or tax liabil- 4. Divide the amount in (1) by the amount in
Attach a computation of your NOL using ity. (On Form 1045, use lines 16 through 30, (3).
Form 1045, Schedule A, and, if it applies, your and the “After carryback” column.) The earned 5. Multiply the refigured tax on your joint re-
NOL carryover using Form 1045, Schedule B, income credit, for example, may be affected by turn by the amount figured in (4). This is
discussed later. changes to AGI or the amount of tax (or both) your share of the joint tax liability.
and, therefore, must be refigured. If you be-
Refiguring your tax. To refigure your total tax come eligible for a credit because of the carry- Figuring your contribution toward tax
liability for a carryback year, first refigure your back, complete the form for that specific credit paid. Unless you have an agreement or clear
AGI for that year. (On Form 1045, use lines 10 (such as the EIC Worksheet) for that year. evidence of each spouse's contributions toward
and 11 and the “After carryback” column for the While it is necessary to refigure your income the payment of the joint tax liability, figure your
applicable carryback year.) Use your AGI after tax, alternative minimum tax, and credits, do not contribution by adding the tax withheld on your
applying the NOL deduction to refigure income refigure your self-employment tax and Addi- wages and your share of joint estimated tax
or deduction items that are based on, or limited tional Medicare Tax. For information about refi- payments or tax paid with the return. If the origi-
to, a percentage of your AGI. Refigure the fol- guring your net investment income tax, shared nal return for the carryback year resulted in an
lowing items. responsibility payment, and credits, see the In- overpayment, reduce your contribution by your
1. The special allowance for passive activity structions for Form 1045. share of the tax refund. Figure your share of a
losses from rental real estate activities. joint payment or refund by the same method
used in figuring your share of the joint tax liabil-
2. Taxable social security benefits. Deducting a Carryforward ity. Use your taxable income as originally repor-
3. IRA deductions. If you carry forward your NOL to a tax year after ted on the joint return in steps 1 and 2 above,
4. Excludable savings bond interest. the NOL year, list your NOL deduction as a and substitute the joint payment or refund for
negative figure on the “Other income” line of the refigured joint tax in step 5.
5. Excludable employer-provided adoption Schedule 1 (Form 1040) or Form 1040-NR
benefits. (line 8 for 2022). Estates and trusts, include an Change in Filing Status
6. The student loan interest deduction. NOL deduction on Form 1041, line 15b, for
2022. If you and your spouse were married and filed a
7. The tuition and fees deduction. joint return for each year involved in figuring
You must attach a statement that shows all
If more than one of these items apply, refig- the important facts about the NOL. Your state- NOL carrybacks and carryovers, figure the NOL
ure them in the order listed above, using your ment should include a computation showing deduction on a joint return as you would for an
AGI after applying the NOL deduction and any how you figured the NOL deduction. If you de- individual. However, treat the NOL deduction as
previous item. (If you are using Form 1045, en- duct more than one NOL in the same year, your a joint NOL.
ter your NOL deduction on line 10. On line 11, statement must cover each of them. If you and your spouse were married and
using the “After carryback” column, enter your filed separate returns for each year involved in
AGI refigured after applying the NOL deduction figuring NOL carrybacks and carryovers, the
and after refiguring any above items.) Change in Marital Status
spouse who sustained the loss may take the
Next, refigure your taxable income. (On If you and your spouse were not married to NOL deduction on a separate return.
Form 1045, use lines 12 through 15 and the “Af- each other in all years involved in figuring NOL
ter carryback” column.) Use your refigured AGI carrybacks and carryovers, only the spouse Special rules apply for figuring the NOL car-
(Form 1045, line 11, using the “After carryback” who had the loss can take the NOL deduction. If rybacks and carryovers of married people
column) to refigure certain deductions and you file a joint return, the NOL deduction is limi- whose filing status changes for any tax year in-
other items that are based on or limited to a per- ted to the income of that spouse. volved in figuring an NOL carryback or carry-
centage of your AGI. Refigure the following over.
items. For example, if your marital status changes
• The itemized deduction for medical expen- because of death or divorce, and in a later year Separate to joint return. If you and your
ses. you have an NOL, you can carry back that loss spouse file a joint return for the tax year, and
• The itemized deduction for qualified mort- only to the part of the income reported on the were married but filed separate returns for any
gage insurance premiums. joint return (filed with your former spouse) that of the tax years involved in figuring the NOL
• The itemized deduction for casualty los- was related to your taxable income. After you carryback or carryover, treat the separate carry-
ses. deduct the NOL in the carryback year, the joint back or carryover as a joint carryback or carry-
• Miscellaneous itemized deductions subject rates apply to the resulting taxable income. over.
to the 2% limit.
• The overall limit on itemized deductions. Refund limit. If you are not married in the Joint to separate returns. If you and your
• The phaseout of the deduction for exemp- NOL year (or are married to a different spouse), spouse file separate returns for a tax year, but
tions. and in the carryback year you were married and filed a joint return for any or all of the tax years
filed a joint return, your refund for the overpaid involved in figuring the NOL carryover, figure
Note. For tax years after 2017, the TCJA joint tax may be limited. You can claim a refund each of your carryovers separately, by separat-
eliminated the itemized deduction for miscella- for the difference between your share of the re- ing the NOL portion for each spouse from within
neous itemized deductions subject to the 2% figured tax and your contribution toward the tax the joint return.
limit, the overall limit on itemized deductions, paid on the joint return. The refund cannot be Because the joint NOL is being carried to a
and the deduction for exemptions. more than the joint overpayment. Attach a tax year involving separate returns, the sepa-
Do not refigure the itemized deduction statement showing how you figured your re- rate NOL of each spouse must be figured.
fund.
! for charitable contributions, even if you Joint return in NOL year. Figure each
CAUTION refigure your AGI. Also, since you do Figuring your share of a joint tax liabil spouse's share of the joint NOL through the fol-
not decrease your charitable contributions, do ity. There are five steps for figuring your share lowing steps.
not increase your charitable contributions carry- of the refigured joint tax liability. 1. Figure each spouse's NOL as if he or she
over.
1. Figure your total tax as though you had filed a separate return. See How To Figure
filed as married filing separately. an NOL, earlier. If only one spouse has an
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NOL, stop here. All of the joint NOL is that 4. You must figure any item affected by the Worksheet 2, but with the NOL deduction from
spouse's NOL. amount of your AGI after making the any prior year.
2. If both spouses have an NOL, multiply the changes in (1), (2), and (3) above, and
joint NOL by a fraction, the numerator of certain other changes to your AGI that re- Line 6. You must refigure the following income
which is spouse A's NOL figured in (1) and sult from (1), (2), and (3). This includes in- and deductions based on AGI.
the denominator of which is the total of the come and deduction items used to figure 1. The special allowance for passive activity
spouses' NOLs figured in (1). The result is AGI (for example, IRA deductions), as well losses from rental real estate activities.
spouse A's share of the joint NOL. The as certain itemized deductions. To figure a
rest of the joint NOL is spouse B's share. charitable contribution deduction, do not 2. Taxable social security benefits.
include deductions for NOL carrybacks in 3. IRA deductions.
Example 1. Mark and Nancy are married the change in (1) but do include deduc-
and file a joint return for 2022. They have an tions for NOL carryforwards from tax years 4. Excludable savings bond interest.
NOL of $5,000 from a farming business. They before the NOL year. 5. Excludable employer-provided adoption
carry the NOL back to 2020, a year in which Your taxable income as modified cannot be benefits.
Mark and Nancy filed separate returns. Figured less than zero. 6. The student loan interest deduction.
separately, Nancy's 2022 deductions were
more than her income, and Mark's income was Form 1045, Schedule B. You can use Form If none of these items apply to you, enter
more than his deductions. Mark does not have 1045, Schedule B, to figure your modified taxa- zero on line 6. Otherwise, increase your AGI by
any NOL to carry back. Nancy can carry back ble income for carryback years and your carry- the total of lines 3 through 5 and your NOL de-
the entire $5,000 NOL to her 2020 separate re- over from each of those years. If your 2022 re- duction for the NOL year entered at the top of
turn. turn includes an NOL deduction from an NOL the worksheet and later years. Using this in-
year before 2018 that reduced your taxable in- creased AGI, refigure the items that apply, in
Example 2. Assume the same facts as in come to zero (to less than zero, if an estate or the order listed above. Your adjustment for
Example 1, except that both Mark and Nancy trust), see NOL Carryover From 2022 to 2023 each item is the difference between the refig-
had deductions in 2022 that were more than below. ured amount and the amount included on your
their income. Figured separately, his NOL is return. Combine the adjustments for previous
$1,800 and her NOL is $3,000. The sum of their items with your AGI before refiguring the next
separate NOLs ($4,800) is less than their NOL Carryover From item. Keep a record of your computations.
$5,000 joint NOL because his deductions inclu- Enter your total adjustments for the above
ded a $200 net capital loss that is not allowed in 2022 to 2023 items on line 6.
figuring his separate NOL. The loss is allowed
in figuring their joint NOL because it was offset If you had an NOL deduction carried forward Line 7. Enter zero if you claimed the standard
by Nancy's capital gains. Mark's share of their from a year before 2018 that resulted in your deduction and the amounts on lines 3 through 5
$5,000 joint NOL is $1,875 ($5,000 × having taxable income on your 2022 return of are zero. Otherwise, use lines 10 through 26 of
$1,800/$4,800) and Nancy's is $3,125 ($5,000 zero (or less than zero, if an estate or trust), the worksheet to figure the amount to enter on
− $1,875). complete Worksheet 2 on the next page. It will this line. Complete only those sections that ap-
help you figure your NOL to carry to 2023. Keep ply to you.
the worksheet for your records.
How To Figure an NOL Estates and trusts. Enter zero on line 7 if
For NOL year 2022, complete Worksheet 3 you did not claim a casualty or theft loss. Other-
Carryover to figure the carryover from 2022. Keep the wise, refigure these deductions by substituting
worksheet for your records. MAGI (see below) for AGI. Subtract the refig-
If your NOL is more than your taxable income ured deductions from those claimed on the re-
for the year to which you carry it (figured before turn. Enter the result on line 7.
deducting the NOL), you may have an NOL car- Worksheet 2 Instructions
ryover. You must make certain modifications to Modified adjusted gross income (MAGI).
your taxable income to determine how much Use Worksheet 2 to figure your carryover to To refigure the casualty and theft loss deduc-
NOL you will use up in that year and how much 2023 if you had an NOL deduction from a year tion of an estate or trust, MAGI is the total of the
you can carry over to the next tax year. Your before 2018 that resulted in your having taxable following amounts.
carryover is the excess of your NOL deduction income on your 2022 return of zero or less. If • The AGI amount you used to figure the de-
over your modified taxable income for the carry- your taxable income is still positive after appli- duction claimed on the return.
back or carryforward year. If your NOL deduc- cation of the NOL deduction, there is no carry- • The amounts from lines 3 through 5 of the
tion includes more than one NOL, apply the over to 2023. worksheet.
NOLs against your modified taxable income in • The NOL deduction for the NOL year en-
the same order in which you incurred them, At the top of the worksheet, enter the NOL tered at the top of the worksheet and for
starting with the earliest. year for which you are figuring the carryover. later years.
Modified taxable income. Your modified tax- More than one NOL. If your 2022 NOL deduc- Line 10. Treat your NOL deduction for the
able income is your taxable income figured with tion includes amounts for more than 1 loss year, NOL year entered at the top of the worksheet
the following changes. complete this worksheet only for 1 loss year. To and for later years as a positive amount. Add it
determine which year, start with your earliest to your AGI. Enter the result on line 10.
1. You cannot claim an NOL deduction for NOL and subtract each NOL separately from
the NOL carryover you are figuring or for your taxable income figured without the NOL Lines 19 and 20. You may be entitled to a
any later NOL. deduction. Complete this worksheet for the ear- larger charitable contributions deduction in de-
2. You cannot claim a deduction for capital liest NOL that results in your having taxable in- termining modified taxable income for 2022
losses in excess of your capital gains. come below zero. Your NOL carryover to 2023 (line 19) than the charitable contribution deduc-
Also, you must increase your taxable in- is the total of the amount on line 9 of the work- tion you were allowed in determining 2022 taxa-
come by the amount of any section 1202 sheet and all later NOL amounts. ble income (line 18). Because of this, the
exclusion. amount you enter on line 20 may be negative.
Line 1. Enter as a positive number the NOL To the extent that these additional charitable
3. You cannot claim a deduction for your ex- carryover from the NOL year identified. contribution deductions decrease the amount of
emptions for yourself, your spouse, or your NOL that is used in 2022, you must reduce your
dependents. Line 2. Enter your taxable income without the charitable contribution carryover to 2023.
NOL deduction for the year listed at the top of

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Worksheet 2. Worksheet To Figure NOL Carryover From 2022 to 2023
(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 2022 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) or Form 1040-NR, line 8; or Form 1041, line 15b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     __________
2.  Enter your taxable income without the NOL deduction for 2022. 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 2023. Subtract line 8 from line 1. Enter the result (but not less than zero) here and 
    on the “Other income” line of Schedule 1 (Form 1040) or Form 1040-NR (or the line on Form 1041 for 
    other deductions) in 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     __________
    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 deductions 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 8 . . . . . . . . . . . . . . . . . . . . . . . . .                                         __________

                                                       the limitation is applied at the partner or share-      $738,000.  The  taxpayer  reports  the  excess 
                                                       holder  level,  the  trade  or  business  determina-    business loss as a positive number on Sched-
Excess Business Loss                                   tion  is  made  at  the  entity’s  level.)  Business    ule 1 (Form 1040 or 1040-SR), line 8–effectively 
                                                       gains and losses reported on Schedule D and             offsetting  part  of  the  loss  claimed  on  Sched-
Noncorporate taxpayers may be subject to ex-           Form 4797 are included in the excess business           ule  C.  This  excess  business  loss  of  $738,000 
cess business loss limitations. The at-risk limits     loss  calculation.  Excess  business  losses  that      will  be  treated  as  an  NOL  carryover  to  2023. 
and the passive activity limits are applied before     are disallowed are treated as an NOL carryover          The taxpayer must then complete Worksheet 3 
figuring  the  amount  of  any  excess  business       to the following tax year. See Form 461 and its         below  to  figure  the  total  NOL  carryover  from 
loss. An excess business loss is the amount by         instructions for details. For application of these      2022 to 2023.
which the total deductions attributable to all of      rules to farmers, see also Pub. 225 and the In-
your  trades  or  businesses  exceed  your  total      structions  for  Schedule  F  (Form  1040  or 
gross  income  and  gains  attributable  to  those     1040-SR).                                               Worksheet 3 Instructions
trades  or  businesses  plus  $270,000  (or 
$540,000 in the case of a joint return). A trade       Example.  For the year 2022, an individual un-          Use  Worksheet  3  to  figure  your  carryover  to 
or  business  includes,  but  is  not  limited  to,    married taxpayer operates a Schedule C busi-            2023 if you had an NOL deduction in 2022.
Schedule C and Schedule F activities, and cer-         ness  and  incurs  a  loss  of  $1  million.  The  tax- Line  1.                                   Enter  your  NOL  amount  from  Work-
tain  activities  reported  on  Schedule  E.  (In  the payer completes Form 461 and determines that            sheet 1, line 24.
case of a partnership or S corporation, although       he  has  incurred  an  excess  business  loss  of 

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Worksheet 3. Worksheet for NOL Carryover For 2022 to 2023 (For NOL Year 2022)
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 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

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right away.
Using online tools to help prepare your re- Although the tax preparer always signs the
Preparing and filing your tax return. After turn. Go to IRS.gov/Tools for the following. return, you're ultimately responsible for provid-
receiving all your wage and earnings state- • The Earned Income Tax Credit Assistant ing all the information required for the preparer
ments (Forms W-2, W-2G, 1099-R, 1099-MISC, (IRS.gov/EITCAssistant) determines if to accurately prepare your return. Anyone paid
1099-NEC, etc.); unemployment compensation you’re eligible for the earned income credit to prepare tax returns for others should have a
statements (by mail or in a digital format) or (EIC). thorough understanding of tax matters. For
other government payment statements (Form • The Online EIN Application IRS.gov/EIN ( ) more information on how to choose a tax pre-
1099-G); and interest, dividend, and retirement helps you get an employer identification parer, go to Tips for Choosing a Tax Preparer
statements from banks and investment firms number (EIN) at no cost. on IRS.gov.
(Forms 1099), you have several options to • The Tax Withholding Estimator IRS.gov/ (
choose from to prepare and file your tax return. W4app) makes it easier for you to estimate Coronavirus. Go to IRS.gov/Coronavirus for
You can prepare the tax return yourself, see if the federal income tax you want your em- links to information on the impact of the corona-
you qualify for free tax preparation, or hire a tax ployer to withhold from your paycheck. virus, as well as tax relief available for individu-
professional to prepare your return. This is tax withholding. See how your with- als and families, small and large businesses,
holding affects your refund, take-home and tax-exempt organizations.
Free options for tax preparation. Go to pay, or tax due.
IRS.gov to see your options for preparing and Employers can register to use Business
filing your return online or in your local commun- • The First-Time Homebuyer Credit Account Services Online. The Social Security Adminis-
ity, if you qualify, which include the following. Look-up IRS.gov/HomeBuyer ( ) tool pro- tration (SSA) offers online service at SSA.gov/
• Free File. This program lets you prepare vides information on your repayments and employer for fast, free, and secure online W-2
and file your federal individual income tax account balance. filing options to CPAs, accountants, enrolled
return for free using brand-name tax-prep- • The Sales Tax Deduction Calculator agents, and individuals who process Form W-2,
aration-and-filing software or Free File filla- (IRS.gov/SalesTax) figures the amount you Wage and Tax Statement, and Form W-2c,
ble forms. However, state tax preparation can claim if you itemize deductions on Corrected Wage and Tax Statement.
may not be available through Free File. Go Schedule A (Form 1040).
to IRS.gov/FreeFile to see if you qualify for Getting answers to your tax ques- IRS social media. Go to IRS.gov/SocialMedia
free online federal tax preparation, e-filing, tions. On IRS.gov, you can get to see the various social media tools the IRS
and direct deposit or payment options. up-to-date information on current uses to share the latest information on tax
• VITA. The Volunteer Income Tax Assis- events and changes in tax law. changes, scam alerts, initiatives, products, and
tance (VITA) program offers free tax help services. At the IRS, privacy and security are
to people with low-to-moderate incomes, • IRS.gov/Help: A variety of tools to help you our highest priority. We use these tools to share
persons with disabilities, and limited-Eng- get answers to some of the most common public information with you. Don’t post your so-
lish-speaking taxpayers who need help tax questions. cial security number (SSN) or other confidential
preparing their own tax returns. Go to • IRS.gov/ITA: The Interactive Tax Assistant, information on social media sites. Always pro-
IRS.gov/VITA, download the free IRS2Go a tool that will ask you questions and, tect your identity when using any social net-
app, or call 800-906-9887 for information based on your input, provide answers on a working site.
on free tax return preparation. number of tax law topics. The following IRS YouTube channels pro-
• TCE. The Tax Counseling for the Elderly • IRS.gov/Forms: Find forms, instructions, vide short, informative videos on various tax-re-
(TCE) program offers free tax help for all and publications. You will find details on lated topics in English, Spanish, and ASL.
taxpayers, particularly those who are 60 the most recent tax changes and interac- • Youtube.com/irsvideos.
years of age and older. TCE volunteers tive links to help you find answers to your • Youtube.com/irsvideosmultilingua.
specialize in answering questions about questions. • Youtube.com/irsvideosASL.
pensions and retirement-related issues • You may also be able to access tax law in-
unique to seniors. Go to IRS.gov/TCE, formation in your electronic filing software. Watching IRS videos. The IRS Video portal
download the free IRS2Go app, or call (IRSVideos.gov) contains video and audio pre-
sentations for individuals, small businesses,
888-227-7669 for information on free tax Need someone to prepare your tax return? and tax professionals.
return preparation. There are various types of tax return preparers,
• MilTax. Members of the U.S. Armed including enrolled agents, certified public ac- Online tax information in other languages.
Forces and qualified veterans may use Mil- countants (CPAs), accountants, and many oth- You can find information on IRS.gov/
Tax, a free tax service offered by the ers who don’t have professional credentials. If

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MyLanguage if English isn’t your native lan- • View digital copies of select notices from Note. The IRS can’t issue refunds before
guage. the IRS. mid-February for returns that claimed the EIC or
• Approve or reject authorization requests the additional child tax credit (ACTC). This ap-
Free Over-the-Phone Interpreter (OPI) Serv- from tax professionals. plies to the entire refund, not just the portion as-
ice. The IRS is committed to serving our multi- • View your address on file or manage your sociated with these credits.
lingual customers by offering OPI services. The communication preferences.
OPI Service is a federally funded program and Making a tax payment. Go to IRS.gov/
is available at Taxpayer Assistance Centers Tax Pro Account. This tool lets your tax pro- Payments for information on how to make a
(TACs), other IRS offices, and every VITA/TCE fessional submit an authorization request to ac- payment using any of the following options.
return site. The OPI Service is accessible in cess your individual taxpayer IRS online • IRS Direct Pay: Pay your individual tax bill
more than 350 languages. account. For more information, go to IRS.gov/ or estimated tax payment directly from
TaxProAccount. your checking or savings account at no
Accessibility Helpline available for taxpay- cost to you.
ers with disabilities. Taxpayers who need in- Using direct deposit. The fastest way to re- • Debit or Credit Card: Choose an approved
formation about accessibility services can call ceive a tax refund is to file electronically and payment processor to pay online or by
833-690-0598. The Accessibility Helpline can choose direct deposit, which securely and elec- phone.
answer questions related to current and future tronically transfers your refund directly into your • Electronic Funds Withdrawal: Schedule a
accessibility products and services available in financial account. Direct deposit also avoids the payment when filing your federal taxes us-
alternative media formats (for example, braille, possibility that your check could be lost, stolen, ing tax return preparation software or
large print, audio, etc.). The Accessibility Help- destroyed, or returned undeliverable to the IRS. through a tax professional.
line does not have access to your IRS account. Eight in 10 taxpayers use direct deposit to re- • Electronic Federal Tax Payment System:
For help with tax law, refunds, or account-rela- ceive their refunds. If you don’t have a bank ac- Best option for businesses. Enrollment is
ted issues, go to IRS.gov/LetUsHelp. count, go to IRS.gov/DirectDeposit for more in- required.
formation on where to find a bank or credit • Check or Money Order: Mail your payment
Note. Form 9000, Alternative Media Pref- union that can open an account online. to the address listed on the notice or in-
erence, or Form 9000(SP) allows you to elect to structions.
receive certain types of written correspondence Getting a transcript of your return. The • Cash: You may be able to pay your taxes
in the following formats. quickest way to get a copy of your tax transcript with cash at a participating retail store.
• Standard Print. is to go to IRS.gov/Transcripts. Click on either • Same-Day Wire: You may be able to do
• Large Print. “Get Transcript Online” or “Get Transcript by same-day wire from your financial institu-
Mail” to order a free copy of your transcript. If tion. Contact your financial institution for
• Braille. you prefer, you can order your transcript by call- availability, cost, and time frames.
• Audio (MP3). ing 800-908-9946.
Note. The IRS uses the latest encryption
• Plain Text File (TXT). Reporting and resolving your tax-related technology to ensure that the electronic pay-
• Braille Ready File (BRF). identity theft issues. ments you make online, by phone, or from a
• Tax-related identity theft happens when mobile device using the IRS2Go app are safe
Disasters. Go to Disaster Assistance and someone steals your personal information and secure. Paying electronically is quick, easy,
Emergency Relief for Individuals and to commit tax fraud. Your taxes can be af- and faster than mailing in a check or money or-
Businesses to review the available disaster tax fected if your SSN is used to file a fraudu- der.
relief. lent return or to claim a refund or credit.
• The IRS doesn’t initiate contact with tax- What if I can’t pay now? Go to IRS.gov/
Getting tax forms and publications. Go to payers by email, text messages (including Payments for more information about your op-
IRS.gov/Forms to view, download, or print all shortened links), telephone calls, or social tions.
the forms, instructions, and publications you media channels to request or verify per- • Apply for an online payment agreement
may need. Or, you can go to IRS.gov/ sonal or financial information. This in- (IRS.gov/OPA) to meet your tax obligation
OrderForms to place an order. cludes requests for personal identification in monthly installments if you can’t pay
numbers (PINs), passwords, or similar in- your taxes in full today. Once you complete
Getting tax publications and instructions in formation for credit cards, banks, or other the online process, you will receive imme-
eBook format. You can also download and financial accounts. diate notification of whether your agree-
view popular tax publications and instructions • Go to IRS.gov/IdentityTheft, the IRS Iden- ment has been approved.
(including the Instructions for Form 1040) on tity Theft Central webpage, for information • Use the Offer in Compromise Pre-Qualifier
mobile devices as eBooks at IRS.gov/eBooks. on identity theft and data security protec- to see if you can settle your tax debt for
tion for taxpayers, tax professionals, and less than the full amount you owe. For
Note. IRS eBooks have been tested using businesses. If your SSN has been lost or more information on the Offer in Compro-
Apple's iBooks for iPad. Our eBooks haven’t stolen or you suspect you’re a victim of mise program, go to IRS.gov/OIC.
been tested on other dedicated eBook readers, tax-related identity theft, you can learn
and eBook functionality may not operate as in- what steps you should take. Filing an amended return. Go to IRS.gov/
tended. Get an Identity Protection PIN (IP PIN). IP Form1040X for information and updates.
•
Access your online account (individual tax- PINs are six-digit numbers assigned to tax-
payers only). Go to IRS.gov/Account to se- payers to help prevent the misuse of their Checking the status of your amended re-
curely access information about your federal tax SSNs on fraudulent federal income tax re- turn. Go to IRS.gov/WMAR to track the status
account. turns. When you have an IP PIN, it pre- of Form 1040-X amended returns.
• View the amount you owe and a break- vents someone else from filing a tax return Note. It can take up to 3 weeks from the
down by tax year. with your SSN. To learn more, go to date you filed your amended return for it to
• See payment plan details or apply for a IRS.gov/IPPIN. show up in our system, and processing it can
new payment plan. Ways to check on the status of your refund. take up to 16 weeks.
ment history and any pending or sched- •
• Make a payment or view 5 years of pay- Go to IRS.gov/Refunds. Understanding an IRS notice or letter
uled payments. • Download the official IRS2Go app to your you’ve received. Go to IRS.gov/Notices to
mobile device to check your refund status. find additional information about responding to
data from your most recent tax return, and •
• Access your tax records, including key Call the automated refund hotline at an IRS notice or letter.
800-829-1954.
transcripts.

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Note. You can use Schedule LEP (Form rights. Their job is to ensure that every taxpayer TaxpayerAdvocate.IRS.gov/Contact-Us. You
1040), Request for Change in Language Prefer- is treated fairly and that you know and under- can also call them at 877-777-4778.
ence, to state a preference to receive notices, stand your rights under the Taxpayer Bill of
letters, or other written communications from Rights. How Else Does TAS Help
the IRS in an alternative language. You may not Taxpayers?
immediately receive written communications in How Can You Learn About Your
the requested language. The IRS’s commitment Taxpayer Rights? TAS works to resolve large-scale problems that
to LEP taxpayers is part of a multi-year timeline affect many taxpayers. If you know of one of
that is scheduled to begin providing translations The Taxpayer Bill of Rights describes 10 basic these broad issues, report it to them at IRS.gov/
in 2023. You will continue to receive communi- rights that all taxpayers have when dealing with SAMS.
cations, including notices and letters in English the IRS. Go to TaxpayerAdvocate.IRS.gov to
until they are translated to your preferred lan- help you understand what these rights mean to TAS for Tax Professionals
guage. you and how they apply. These are your rights.
Contacting your local IRS office. Keep in Know them. Use them. TAS can provide a variety of information for tax
mind, many questions can be answered on professionals, including tax law updates and
IRS.gov without visiting an IRS TAC. Go to What Can TAS Do for You? guidance, TAS programs, and ways to let TAS
IRS.gov/LetUsHelp for the topics people ask know about systemic problems you’ve seen in
about most. If you still need help, IRS TACs TAS can help you resolve problems that you your practice.
provide tax help when a tax issue can’t be han- can’t resolve with the IRS. And their service is
dled online or by phone. All TACs now provide free. If you qualify for their assistance, you will Low Income Taxpayer
service by appointment, so you’ll know in ad- be assigned to one advocate who will work with Clinics (LITCs)
vance that you can get the service you need you throughout the process and will do every-
without long wait times. Before you visit, go to thing possible to resolve your issue. TAS can LITCs are independent from the IRS. LITCs
IRS.gov/TACLocator to find the nearest TAC help you if: represent individuals whose income is below a
and to check hours, available services, and ap- • Your problem is causing financial difficulty certain level and need to resolve tax problems
pointment options. Or, on the IRS2Go app, un- for you, your family, or your business; with the IRS, such as audits, appeals, and tax
der the Stay Connected tab, choose the Con- • You face (or your business is facing) an collection disputes. In addition, LITCs can pro-
tact Us option and click on “Local Offices.” immediate threat of adverse action; or vide information about taxpayer rights and re-
• You’ve tried repeatedly to contact the IRS sponsibilities in different languages for individu-
but no one has responded, or the IRS als who speak English as a second language.
The Taxpayer Advocate hasn’t responded by the date promised. Services are offered for free or a small fee for
Service (TAS) Is Here To eligible taxpayers. To find an LITC near you, go
Help You How Can You Reach TAS? to TaxpayerAdvocate.IRS.gov/about-us/Low-
What Is TAS? Income-Taxpayer-Clinics-LITC or see IRS Pub.
TAS has offices in every state, the District of 4134, Low Income Taxpayer Clinic List.
TAS is an independent organization within the Columbia, and Puerto Rico. Your local advo-
IRS that helps taxpayers and protects taxpayer cate’s number is in your local directory and at

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                     To help us develop a more useful index, please let us know if you have ideas for index entries.
Index                See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.
 
                               Carryover 7                 Modified taxable income 7
A                              NOLs from other years  3                                    W
Assistance (See Tax help)      Nonbusiness deductions   2  N                               Waiving the carryback period   5
                               Nonbusiness income 3        NOL Before 2018, Carryover to   What’s New 1
                               Worksheet 1. Figuring Your    2023:                         When to use an NOL 3
C                                 NOL  2                     Worksheet 2 instructions 7    Worksheet 2:
Carryback period 3           Filing status, change in 6    NOL in 2022, Carryover to 2023:  Carryover from 2022 to 2023 for 
Carryback, waiving   5       Form 1045, Schedule B    7      Worksheet 3 Instructions 8     NOL Year Before 2018         8
Carryforward period  3       Forms and schedules:          NOL year 2 3, 
Carryover from 2022 to 2023:   Form 1040X  5
  Estates and trusts 7         Form 1045 5
Claiming an NOL deduction  5   Form 1045, Schedule B   7   P
                             Future developments  1        Publications (See Tax help)
D
Deducting a carryback  5     H                             R
Deducting a carryforward  6  How to carry an NOL back or   Refiguring tax 6
                               forward 5                   Reminders     1
E                            How to figure an NOL 2
                                                           S
Excess business loss   8     M                             Steps in figuring NOL 2
F                            Marital status, change in 6
                             Missing children, photographs T
Figuring an NOL:               of 2
  Capital losses 3                                         Tax help 9

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