Triva isn't available right now.
Check out the support page for our phone number and hours
Screen INNOL-2 - Indiana Net Operating Loss Carryover from Prior Years (1040)
Show all hidden content
2022 and prior
NOL/AGI statement
When claiming a deduction on current year Schedule 2 for an Indiana NOL incurred in a prior year, the current year return must include a copy of Schedule IT-40NOL reconstructed for the loss year. The Indiana NOL Carryover Worksheets reconstruct Indiana AGI from year to year and track the amount of NOL Carryforward that has been applied to each year and the amount that can be applied to the current year.
Various components of income, add-backs, deductions, and exemptions proforma to this statement from the prior year system.
Schedule IT-40NOL uses certain components from this statement to reconstruct any Indiana net operating loss from a prior year. Likewise, the Indiana NOL Carryover worksheets user certain components from this statement to reconstruct Indiana AGI for Intervening Years. (An intervening year is a prior year to which an NOL carryforward has been applied.)
For new clients, enter components as needed to reconstruct prior year net operating losses via Schedule IT-40NOL and to reconstruct Indiana AGI from Intervening Years.
2023 and beyond
NOL statement
When claiming a deduction on current year Schedule 2 for an Indiana NOL incurred in a prior year, the current year return must include a copy of Schedule IT-40NOL reconstructed for the loss year.
Amounts for codes 91, 92, 93, 95, and 96 proforma to this statement from the prior year system. For Loss Year 2023 and onward, Schedule IT-40NOL uses the code 91, 92, 93, 95, and 96 amounts to reconstruct any Net Operating Loss from the tax year.
For new clients, enter amounts from Schedule IT-40NOL of the Loss Year as follows:
- Code 91 - Federal AGI
- Code 92 - Certain addbacks/deductions shown on Schedule IT-40NOL
- Typically, the NOL computation includes the followingadd-backsto federal AGI for the following if reported on Indiana Schedule 1 in the loss year:
- Deferral of Business Indebtedness
- Excess Business Losses modifications
- Excess Federal Interest Deduction modification
- Excess Inclusion Income modifications
- Federal Repatriated Dividend
- Meals Expense
- Municipal Obligations – Out of State
- NOL carryforward deduction on federal return
- Preferred stock
- Qualified Environmental Remediation costs
- Qualified Film/TV production
- Specified Research expenses
- Startup expenditures
- State Taxes deducted on federal return
- Student loan debt discharged IRC 108(f)(5)
- Student loan payment by employer
- Depreciation adjustments, including adjustments for
- Qualified Restaurant Property
- Qualified Retail Improvement Property
- Qualified Disaster Assistance Property
- Qualified Refinery Property
- Qualified Leasehold Improvement Property
- Qualified Advance Mine Safety Equipment
- Motorsports Entertainment Complex
- Dispositions (including like-kind exchanges)
- Section 179 expenses
- Typically, the NOL computation includes the followingdeductionsif reported on Schedule 2 in the loss year:
- COVID-related ERC expenses
- Government/Civic Group Capital Contributions
- Homestead Property tax
- Human Services deduction
- Indiana Career Scholarship Account
- Indiana Education Scholarship Grant deduction
- Indiana Enrichment Scholarship Account
- Itemized Deduction Recovery
- Long-Term Care (LTC) premiums
- National Guard / Reserve Component deduction
- Qualified Patents Income Exemption
- Small Employer Health Insurance Premium
- Social Security and Railroad benefits
- Specified Research Expenses
- State Tax Refund
- Student Loan Interest for interest paid from SL payments
- U.S. Obligations interest
- Code 93 - Modifications to federal NOL as shown on Schedule IT-40NOL
- Code 95 - Certain federal NOLs shown on Schedule IT-40NOL
- Code 96 - Certain modifications shown on Schedule IT-40NOL
note
Amounts from the immediate prior year proforma based on calculated values in last year's return. Amounts from other years from 2023 and onward proforma from last year' screen INNOL-2.
AGI statement
The Indiana NOL Carryover Worksheets reconstruct Indiana AGI from year to year and track the amount of NOL Carryforward that has been applied to each year and the amount that can be applied to the current year.
Amounts for codes 81, 82, 83, and 84 proforma to this statement from the prior year system. For tax years 2023 and onward, the worksheets use the code 81, 82, 83, and 84 amounts to reconstruct Indiana AGI from the Intervening Year (a prior year to which an NOL carryforward has been applied).
For new clients, enter amounts the Indiana tax return of the Intervening Year as follows:
- Code 81 - Amount from Form IT-40, line 1 (federal AGI)
- Code 82 - Certain Add-backs
- Typically, the Indiana AGI computation includes the followingadd-backsto federal AGI for the following if reported on Indiana Schedule 1 in the Intervening Year:
- Deferral of Business Indebtedness
- Excess Business Losses modifications
- Excess Federal Interest Deduction modification
- Excess Inclusion Income modifications
- Federal Repatriated Dividend
- Meals Expense
- Municipal Obligations – Out of State
- NOL carryforward deduction on federal return
- Preferred stock
- Qualified Environmental Remediation costs
- Qualified Film/TV production
- Specified Research expenses
- Startup expenditures
- State Taxes deducted on federal return
- Student loan debt discharged IRC 108(f)(5)
- Student loan payment by employer
- Depreciation adjustments, including adjustments for
- Qualified Restaurant Property
- Qualified Retail Improvement Property
- Qualified Disaster Assistance Property
- Qualified Refinery Property
- Qualified Leasehold Improvement Property
- Qualified Advance Mine Safety Equipment
- Motorsports Entertainment Complex
- Dispositions (including like-kind exchanges)
- Section 179 expenses
- Code 83 - Certain Deductions
- Typically, the Indiana AGI computation includes the followingdeductionsto federal AGI for the following if reported on Indiana Schedule 2 in the Intervening Year:
- COVID-related ERC expenses
- Government/Civic Group Capital Contributions
- Homestead Property tax
- Human Services deduction
- Indiana Career Scholarship Account
- Indiana Education Scholarship Grant deduction
- Indiana Enrichment Scholarship Account
- Itemized Deduction Recovery
- Long-Term Care (LTC) premiums
- National Guard / Reserve Component deduction
- Qualified Patents Income Exemption
- Small Employer Health Insurance Premium
- Social Security and Railroad benefits
- Specified Research Expenses
- State Tax Refund
- Student Loan Interest for interest paid from SL payments
- U.S. Obligations interest
- Code 84 - ExemptionsnoteAmounts from the immediate prior year proforma based on calculated values in last year's return. Amounts from other years from 2023 and onward proforma from last year' screen INNOL-2.
Related Content
-
Apply a prior-year NOL to current-year income
Format:
Article,
5 min read
-
Net operating losses (NOL) for Indiana part-year/nonresident
Format:
Article,
1 min read