Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Freefile

Preparing Form 1040xHow To Amend Federal Tax ReturnTax Planning Us 2006 Taxes1040 Form For 2010File Tax Extension OnlineTurbotax Amended Return 20132011 Federal Income Tax FormsHow To File 1040nr EzFree State Tax ServiceWhere Can I File My 2011 Taxes Online1040 Ez Filing2007 Income Tax OnlineFree Tax Filing OnlineDo I Have To File A State Tax ReturnFile An Extension On My Taxes1040 Ez DownloadFree TaxesI Forgot To File My 2012 TaxesFederal Tax FilingHow To File Self Employment TaxesFile My Taxes For FreeFree 1040 Ez FilingFile 2010 Taxes FreeCan I Still File Taxes For 2012How To Do Back TaxesFree Tax Filing 2013Irs Tax Forms 2007Claim Social Security Income TaxesFree 2009 Tax Software1040ezForm 1040 Schedule AHow To File Taxes StudentMilitary DiscountForm1040ezState Income Tax FilingFree Tax Filing OnlineTax Filing Extension Deadline 2012Turbo Tax 2005File 1040ez By Phone2012 1040 Irs Tax Forms

Freefile

Freefile Publication 536 - Main Content Table of Contents NOL Steps How To Figure an NOLNonbusiness deductions (line 6). Freefile Nonbusiness income (line 7). Freefile Nonbusiness capital losses. Freefile Business capital losses. Freefile Illustrated Form 1045, Schedule A When To Use an NOLExceptions to 2-Year Carryback Rule Waiving the Carryback Period How To Carry an NOL Back or Forward How To Claim an NOL DeductionDeducting a Carryback Deducting a Carryforward Change in Marital Status Change in Filing Status Illustrated Form 1045 How To Figure an NOL CarryoverIllustrated Form 1045, Schedule B NOL Carryover From 2013 to 2014Worksheet Instructions How To Get Tax HelpLow Income Taxpayer Clinics NOL Steps Follow Steps 1 through 5 to figure and use your NOL. Freefile Step 1. Freefile   Complete your tax return for the year. Freefile You may have an NOL if a negative figure appears on the line below: Individuals — Form 1040, line 41, or Form 1040NR, line 39. Freefile Estates and trusts — Form 1041, line 22. Freefile   If the amount on that line is not negative, stop here — you do not have an NOL. Freefile Step 2. Freefile   Determine whether you have an NOL and its amount. Freefile See How To Figure an NOL , later. Freefile If you do not have an NOL, stop here. Freefile Step 3. Freefile   Decide whether to carry the NOL back to a past year or to waive the carryback period and instead carry the NOL forward to a future year. Freefile See When To Use an NOL , later. Freefile Step 4. Freefile   Deduct the NOL in the carryback or carryforward year. Freefile See How To Claim an NOL Deduction , later. Freefile If your NOL deduction is equal to or less than your taxable income without the deduction, stop here — you have used up your NOL. Freefile Step 5. Freefile   Determine the amount of your unused NOL. Freefile See How To Figure an NOL Carryover , later. Freefile Carry over the unused NOL to the next carryback or carryforward year and begin again at Step 4. Freefile Note. Freefile   If your NOL deduction includes more than one NOL amount, apply Step 5 separately to each NOL amount, starting with the amount from the earliest year. Freefile How To Figure an NOL If your deductions for the year are more than your income for the year, you may have an NOL. Freefile There are rules that limit what you can deduct when figuring an NOL. Freefile In general, the following items are not allowed when figuring an NOL. Freefile Any deduction for personal exemptions. Freefile Capital losses in excess of capital gains. Freefile The section 1202 exclusion of the gain from the sale or exchange of qualified small business stock. Freefile Nonbusiness deductions in excess of nonbusiness income. Freefile The net operating loss deduction. Freefile The domestic production activities deduction. Freefile Form 1045, Schedule A. Freefile   Use Form 1045, Schedule A, to figure an NOL. Freefile The following discussion explains Schedule A and includes an illustrated example. Freefile   First, complete Form 1045, Schedule A, line 1, using amounts from your return. Freefile If line 1 is a negative amount, you may have an NOL. Freefile   Next, complete the rest of Form 1045, Schedule A, to figure your NOL. Freefile Nonbusiness deductions (line 6). Freefile   Enter on line 6 deductions that are not connected to your trade or business or your employment. Freefile Examples of deductions not related to your trade or business are: Alimony paid, Deductions for contributions to an IRA or a self-employed retirement plan, Health savings account deduction, Archer medical savings account deduction, Most itemized deductions (except for casualty and theft losses, state income tax on trade and business income, and any employee business expenses), and The standard deduction. Freefile   Do not include on line 6 the deduction for personal exemptions for you, your spouse, or your dependents. Freefile   Do not enter business deductions on line 6. Freefile These are deductions that are connected to your trade or business. Freefile They include the following. Freefile State income tax on income attributable to trade or business (including wages, salary, and unemployment compensation). Freefile Moving expenses. Freefile Educator expenses. Freefile The deduction for the deductible part of self-employed health insurance. Freefile Domestic production activities deduction. Freefile Rental losses. Freefile Loss on the sale or exchange of business real estate or depreciable property. Freefile Your share of a business loss from a partnership or an S corporation. Freefile Ordinary loss on the sale or exchange of stock in a small business corporation or a small business investment company. Freefile If you itemize your deductions, casualty and theft losses (even if they involve nonbusiness property) and employee business expenses (such as union dues, uniforms, tools, education expenses, and travel and transportation expenses). Freefile Loss on the sale of accounts receivable (if you use an accrual method of accounting). Freefile Interest and litigation expenses on state and federal income taxes related to your business. Freefile Unrecovered investment in a pension or annuity claimed on a decedent's final return. Freefile Payment by a federal employee to buy back sick leave used in an earlier year. Freefile Nonbusiness income (line 7). Freefile   Enter on line 7 only income that is not related to your trade or business or your employment. Freefile For example, enter your annuity income, dividends, and interest on investments. Freefile Also, include your share of nonbusiness income from partnerships and S corporations. Freefile   Do not include on line 7 the income you receive from your trade or business or your employment. Freefile This includes salaries and wages, self-employment income, unemployment compensation included in your gross income, and your share of business income from partnerships and S corporations. Freefile Also, do not include rental income or ordinary gain from the sale or other disposition of business real estate or depreciable business property. Freefile Adjustment for section 1202 exclusion (line 17). Freefile   Enter on line 17 any gain you excluded under section 1202 on the sale or exchange of qualified small business stock. Freefile Adjustments for capital losses (lines 19–22). Freefile   The amount deductible for capital losses is limited based on whether the losses are business capital losses or nonbusiness capital losses. Freefile Nonbusiness capital losses. Freefile   You can deduct your nonbusiness capital losses (line 2) only up to the amount of your nonbusiness capital gains without regard to any section 1202 exclusion (line 3). Freefile If your nonbusiness capital losses are more than your nonbusiness capital gains without regard to any section 1202 exclusion, you cannot deduct the excess. Freefile Business capital losses. Freefile   You can deduct your business capital losses (line 11) only up to the total of: Your nonbusiness capital gains that are more than the total of your nonbusiness capital losses and excess nonbusiness deductions (line 10), and Your total business capital gains without regard to any section 1202 exclusion (line 12). Freefile Domestic production activities deduction (line 23). Freefile   You cannot take the domestic production activities deduction when figuring your NOL. Freefile Enter on line 23 any domestic production activities deduction claimed on your return. Freefile NOLs from other years (line 24). Freefile   You cannot deduct any NOL carryovers or carrybacks from other years. Freefile Enter the total amount of your NOL deduction for losses from other years. Freefile Illustrated Form 1045, Schedule A The following example illustrates how to figure an NOL. Freefile It includes filled-in pages 1 and 2 of Form 1040 and Form 1045, Schedule A. Freefile Example. Freefile Glenn Johnson is in the retail record business. Freefile He is single and has the following income and deductions on his Form 1040 for 2013. Freefile See the illustrated Form 1040 , later. Freefile INCOME   Wages from part-time job $1,225 Interest on savings 425 Net long-term capital gain on sale of real estate used in business 2,000 Glenn's total income $3,650 DEDUCTIONS   Net loss from business (gross income of $67,000 minus expenses of $72,000) $5,000 Net short-term capital loss on sale of stock 1,000 Standard deduction 6,100 Personal exemption 3,900 Glenn's total deductions $16,000 Glenn's deductions exceed his income by $12,350 ($16,000 − $3,650). Freefile However, to figure whether he has an NOL, certain deductions are not allowed. Freefile He uses Form 1045, Schedule A, to figure his NOL. Freefile See the Illustrated Form 1045, Schedule A , later. Freefile The following items are not allowed on Form 1045, Schedule A. Freefile Nonbusiness net short-term capital loss $1,000 Nonbusiness deductions (standard deduction, $6,100) minus nonbusiness income (interest, $425) 5,675 Deduction for personal exemption 3,900 Total adjustments to net loss $10,575     Therefore, Glenn's NOL for 2013 is figured as follows: Glenn's total 2013 income $3,650 Less:     Glenn's original 2013 total deductions $16,000   Reduced by the disallowed items − 10,575 − 5,425 Glenn's NOL for 2013 $1,775 This image is too large to be displayed in the current screen. Freefile Please click the link to view the image. Freefile Form 1040, page 1 This image is too large to be displayed in the current screen. Freefile Please click the link to view the image. Freefile Form 1040, page 2 This image is too large to be displayed in the current screen. Freefile Please click the link to view the image. Freefile Form 1045, page 2 When To Use an NOL Generally, if you have an NOL for a tax year ending in 2013, you must carry back the entire amount of the NOL to the 2 tax years before the NOL year (the carryback period), and then carry forward any remaining NOL for up to 20 years after the NOL year (the carryforward period). Freefile You can, however, choose not to carry back an NOL and only carry it forward. Freefile See Waiving the Carryback Period , later. Freefile You cannot deduct any part of the NOL remaining after the 20-year carryforward period. Freefile NOL year. Freefile   This is the year in which the NOL occurred. Freefile Exceptions to 2-Year Carryback Rule Eligible losses, farming losses, qualified disaster losses, and specified liability losses, all defined next, qualify for longer carryback periods. Freefile Eligible loss. Freefile   The carryback period for eligible losses is 3 years. Freefile Only the eligible loss portion of the NOL can be carried back 3 years. Freefile An eligible loss is any part of an NOL that: Is from a casualty or theft, or Is attributable to a federally declared disaster for a qualified small business or certain qualified farming businesses. Freefile Qualified small business. Freefile   A qualified small business is a sole proprietorship or a partnership that has average annual gross receipts (reduced by returns and allowances) of $5 million or less during the 3-year period ending with the tax year of the NOL. Freefile If the business did not exist for this entire 3-year period, use the period the business was in existence. Freefile   An eligible loss does not include a farming loss or a qualified disaster loss. Freefile Farming loss. Freefile   The carryback period for a farming loss is 5 years. Freefile Only the farming loss portion of the NOL can be carried back 5 years. Freefile A farming loss is the smaller of: The amount that would be the NOL for the tax year if only income and deductions attributable to farming businesses were taken into account, or The NOL for the tax year. Freefile Farming business. Freefile   A farming business is a trade or business involving cultivation of land or the raising or harvesting of any agricultural or horticultural commodity. Freefile A farming business can include operating a nursery or sod farm or raising or harvesting most ornamental trees or trees bearing fruit, nuts, or other crops. Freefile The raising, shearing, feeding, caring for, training, and management of animals is also considered a farming business. Freefile   A farming business does not include contract harvesting of an agricultural or horticultural commodity grown or raised by someone else. Freefile It also does not include a business in which you merely buy or sell plants or animals grown or raised entirely by someone else. Freefile Waiving the 5-year carryback. Freefile   You can choose to figure the carryback period for a farming loss without regard to the special 5-year carryback rule. Freefile To make this choice for 2013, attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are choosing to treat any 2013 farming losses without regard to the special 5-year carryback rule. Freefile If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months after the due date of the return (excluding extensions). Freefile Attach an election statement to your amended return, and write “Filed pursuant to section 301. Freefile 9100-2” at the top of the statement. Freefile Once made, this choice is irrevocable. Freefile Qualified disaster loss. Freefile   The carryback period for a qualified disaster loss is 5 years. Freefile Only the qualified disaster loss portion of the NOL can be carried back 5 years. Freefile A qualified disaster loss is the smaller of: The sum of: Any losses attributable to a federally declared disaster and occurring before January 1, 2010, in the disaster area, plus Any allowable qualified disaster expenses (even if you did not choose to treat those expenses as deductions in the current year), or The NOL for the tax year. Freefile Qualified disaster expenses. Freefile   A qualified disaster expense is any capital expense paid or incurred in connection with a trade or business or with business-related property which is: For the abatement or control of hazardous substances that were released as a result of a federally declared disaster occurring before January 1, 2010, For the removal of debris from, or the demolition of structures on, real property which is business-related property damaged or destroyed as a result of a federally declared disaster occurring before January 1, 2010, or For the repair of business-related property damaged as a result of a federally declared disaster occurring before January 1, 2010. Freefile Business-related property is property held for use in a trade or business, property held for the production of income, or inventory property. Freefile Note. Freefile Section 198A allows taxpayers to treat certain capital expenses (qualified disaster expenses) as deductions in the year the expenses were paid or incurred. Freefile Excluded losses. Freefile   A qualified disaster loss does not include any losses from property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store for which the principal business is the sale of alcoholic beverages for consumption off premises. Freefile   A qualified disaster loss also does not include any losses from any gambling or animal racing property. Freefile Gambling or animal racing property is any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and the portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. Freefile Specified liability loss. Freefile   The carryback period for a specified liability loss is 10 years. Freefile Only the specified liability loss portion of the NOL can be carried back 10 years. Freefile Generally, a specified liability loss is a loss arising from: Product liability and expenses incurred in the investigation or settlement of, or opposition to, product liability claims, or An act (or failure to act) that occurred at least 3 years before the beginning of the loss year and resulted in a liability under a federal or state law requiring: Reclamation of land, Dismantling of a drilling platform, Remediation of environmental contamination, or Payment under any workers compensation act. Freefile   Any loss from a liability arising from (1) through (4) above can be taken into account as a specified liability loss only if you used an accrual method of accounting throughout the period in which the act (or failure to act) occurred. Freefile For details, see section 172(f). Freefile Waiving the 10-year carryback. Freefile   You can choose to figure the carryback period for a specified liability loss without regard to the special 10-year carryback rule. Freefile To make this choice for 2013 attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are choosing to treat any 2013 specified liability losses without regard to the special 10-year carryback rule. Freefile If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months after the due date of the return (excluding extensions). Freefile Attach a statement to your amended return and write “Filed pursuant to section 301. Freefile 9100-2” at the top of the statement. Freefile Once made, this choice is irrevocable. Freefile Waiving the Carryback Period You can choose not to carry back your NOL. Freefile If you make this choice, then you can use your NOL only in the 20-year carryforward period. Freefile (This choice means you also choose not to carry back any alternative tax NOL. Freefile ) To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. Freefile This statement must show that you are choosing to waive the carryback period under section 172(b)(3). Freefile If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months of the due date of the return (excluding extensions). Freefile Attach a statement to your amended return, and write “Filed pursuant to section 301. Freefile 9100-2” at the top of the statement. Freefile Once you choose to waive the carryback period, it generally is irrevocable. Freefile If you choose to waive the carryback period for more than one NOL, you must make a separate choice and attach a separate statement for each NOL year. Freefile If you do not file this statement on time, you cannot waive the carryback period. Freefile How To Carry an NOL Back or Forward If you choose to carry back the NOL, you must first carry the entire NOL to the earliest carryback year. Freefile If your NOL is not used up, you can carry the rest to the next earliest carryback year, and so on. Freefile If you waive the carryback period or do not use up the NOL in the carryback period, carry forward what remains of the NOL to the 20 tax years following the NOL year. Freefile Start by carrying it to the first tax year after the NOL year. Freefile If you do not use it up, carry the unused part to the next year. Freefile Continue to carry any unused part of the NOL forward until the NOL is used up or you complete the 20-year carryforward period. Freefile Example 1. Freefile You started your business as a sole proprietor in 2013 and had a $42,000 NOL for the year. Freefile No part of the NOL qualifies for the 3-year, 5-year, or 10-year carryback. Freefile You begin using your NOL in 2011, the second year before the NOL year, as shown in the following chart. Freefile Year   Carryback/  Carryover Unused  Loss 2011 $42,000 $40,000 2012 40,000 37,000 2013 (NOL year)     2014 37,000 31,500 2015 31,500 22,500 2016 22,500 12,700 2017 12,700 4,000 2018 4,000 -0- If your loss were larger, you could carry it forward until the year 2033. Freefile If you still had an unused 2013 carryforward after the year 2033, you would not be allowed to deduct it. Freefile Example 2. Freefile Assume the same facts as in Example 1 , except that $4,000 of the NOL is attributable to a casualty loss and this loss qualifies for a 3-year carryback period. Freefile You begin using the $4,000 in 2010. Freefile As shown in the following chart, $3,000 of this NOL is used in 2010. Freefile The remaining $1,000 is carried to 2011 with the $38,000 NOL that you must begin using in 2011. Freefile Year   Carryback/  Carryover Unused  Loss 2010 $4,000 $1,000 2011 39,000 37,000 2012 37,000 34,000 2013 (NOL year)     2014 34,000 28,500 2015 28,500 19,500 2016 19,500 9,700 2017 9,700 1,000 2018 1,000 -0- How To Claim an NOL Deduction If you have not already carried the NOL to an earlier year, your NOL deduction is the total NOL. Freefile If you carried the NOL to an earlier year, your NOL deduction is the carried over NOL minus the NOL amount you used in the earlier year or years. Freefile If you carry more than one NOL to the same year, your NOL deduction is the total of these carrybacks and carryovers. Freefile NOL resulting in no taxable income. Freefile   If your NOL is more than the taxable income of the year you carry it to (figured before deducting the NOL), you generally will have an NOL carryover to the next year. Freefile See How To Figure an NOL Carryover , later, to determine how much NOL you have used and how much you carry to the next year. Freefile Deducting a Carryback If you carry back your NOL, you can use either Form 1045 or Form 1040X. Freefile You can get your refund faster by using Form 1045, but you have a shorter time to file it. Freefile You can use Form 1045 to apply an NOL to all carryback years. Freefile If you use Form 1040X, you must use a separate Form 1040X for each carryback year to which you apply the NOL. Freefile Estates and trusts that do not file Form 1045 must file an amended Form 1041 (instead of Form 1040X) for each carryback year to which NOLs are applied. Freefile Use a copy of the appropriate year's Form 1041, check the “Amended return” box, and follow the Form 1041 instructions for amended returns. Freefile Include the NOL deduction with other deductions not subject to the 2% limit (line 15a). Freefile Also, see the special procedures for filing an amended return due to an NOL carryback, explained under Form 1040X , later. Freefile Form 1045. Freefile   You can apply for a quick refund by filing Form 1045. Freefile This form results in a tentative adjustment of tax in the carryback year. Freefile See the Illustrated Form 1045 . Freefile at the end of this discussion. Freefile   If the IRS refunds or credits an amount to you from Form 1045 and later determines that the refund or credit is too much, the IRS may assess and collect the excess immediately. Freefile   Generally, you must file Form 1045 on or after the date you file your tax return for the NOL year, but not later than one year after the end of the NOL year. Freefile If the last day of the NOL year falls on a Saturday, Sunday, or holiday, the form will be considered timely if postmarked on the next business day. Freefile For example, if you are a calendar year taxpayer with a carryback from 2013 to 2011, you must file Form 1045 on or after the date you file your tax return for 2013, but no later than December 31, 2014. Freefile Form 1040X. Freefile   If you do not file Form 1045, you can file Form 1040X to get a refund of tax because of an NOL carryback. Freefile File Form 1040X within 3 years after the due date, including extensions, for filing the return for the NOL year. Freefile For example, if you are a calendar year taxpayer and filed your 2011 return by the April 15, 2012, due date, you must file a claim for refund of 2008 tax because of an NOL carryback from 2011 by April 15, 2015. Freefile   Attach a computation of your NOL using Form 1045, Schedule A, and, if it applies, your NOL carryover using Form 1045, Schedule B, discussed later . Freefile Refiguring your tax. Freefile   To refigure your total tax liability for a carryback year, first refigure your adjusted gross income for that year. Freefile (On Form 1045, use lines 10 and 11 and the “After carryback” column for the applicable carryback year. Freefile ) Use your adjusted gross income after applying the NOL deduction to refigure income or deduction items that are based on, or limited to, a percentage of your adjusted gross income. Freefile Refigure the following items. Freefile The special allowance for passive activity losses from rental real estate activities. Freefile Taxable social security and tier 1 railroad retirement benefits. Freefile IRA deductions. Freefile Excludable savings bond interest. Freefile Excludable employer-provided adoption benefits. Freefile The student loan interest deduction. Freefile The tuition and fees deduction. Freefile   If more than one of these items apply, refigure them in the order listed above, using your adjusted gross income after applying the NOL deduction and any previous item. Freefile (Enter your NOL deduction on Form 1045, line 10. Freefile On line 11, using the “After carryback” column, enter your adjusted gross income refigured after applying the NOL deduction and after refiguring any above items. Freefile )   Next, refigure your taxable income. Freefile (On Form 1045, use lines 12 through 15 and the “After carryback” column. Freefile ) Use your refigured adjusted gross income (Form 1045, line 11, using the “After carryback” column) to refigure certain deductions and other items that are based on or limited to a percentage of your adjusted gross income. Freefile Refigure the following items. Freefile The itemized deduction for medical expenses. Freefile The itemized deduction for qualified mortgage insurance premiums. Freefile The itemized deduction for casualty losses. Freefile Miscellaneous itemized deductions subject to the 2% limit. Freefile The overall limit on itemized deductions (do not apply to carryback years beginning after December 31, 2009). Freefile The phaseout of the deduction for exemptions (do not apply to carryback years beginning after December 31, 2009). Freefile Qualified motor vehicle tax (do not apply to carryback years beginning after December 31, 2009). Freefile    Do not refigure the itemized deduction for charitable contributions. Freefile   Finally, use your refigured taxable income (Form 1045, line 15, using the “After carryback” column) to refigure your total tax liability. Freefile Refigure your income tax, your alternative minimum tax, and any credits that are based on or limited by your adjusted gross income (AGI), modified adjusted gross income (MAGI), or tax liability. Freefile (On Form 1045, use lines 16 through 25, and the “After carryback” column. Freefile ) The earned income credit, for example, may be affected by changes to adjusted gross income or the amount of tax (or both) and, therefore, must be recomputed. Freefile If you become eligible for a credit because of the carryback, complete the form for that specific credit (such as the EIC Worksheet) for that year. Freefile   While it is necessary to refigure your income tax, alternative minimum tax, and credits, do not refigure your self-employment tax. Freefile Deducting a Carryforward If you carry forward your NOL to a tax year after the NOL year, list your NOL deduction as a negative figure on the “Other income” line of Form 1040 or Form 1040NR (line 21 for 2013). Freefile Estates and trusts include an NOL deduction on Form 1041 with other deductions not subject to the 2% limit (line 15a for 2013). Freefile You must attach a statement that shows all the important facts about the NOL. Freefile Your statement should include a computation showing how you figured the NOL deduction. Freefile If you deduct more than one NOL in the same year, your statement must cover each of them. Freefile Change in Marital Status If you and your spouse were not married to each other in all years involved in figuring NOL carrybacks and carryovers, only the spouse who had the loss can take the NOL deduction. Freefile If you file a joint return, the NOL deduction is limited to the income of that spouse. Freefile For example, if your marital status changes because of death or divorce, and in a later year you have an NOL, you can carry back that loss only to the part of the income reported on the joint return (filed with your former spouse) that was related to your taxable income. Freefile After you deduct the NOL in the carryback year, the joint rates apply to the resulting taxable income. Freefile Refund limit. Freefile   If you are not married in the NOL year (or are married to a different spouse), and in the carryback year you were married and filed a joint return, your refund for the overpaid joint tax may be limited. Freefile You can claim a refund for the difference between your share of the refigured tax and your contribution toward the tax paid on the joint return. Freefile The refund cannot be more than the joint overpayment. Freefile Attach a statement showing how you figured your refund. Freefile Figuring your share of a joint tax liability. Freefile   There are five steps for figuring your share of the refigured joint tax liability. Freefile Figure your total tax as though you had filed as married filing separately. Freefile Figure your spouse's total tax as though your spouse had also filed as married filing separately. Freefile Add the amounts in (1) and (2). Freefile Divide the amount in (1) by the amount in (3). Freefile Multiply the refigured tax on your joint return by the amount figured in (4). Freefile This is your share of the joint tax liability. Freefile Figuring your contribution toward tax paid. Freefile   Unless you have an agreement or clear evidence of each spouse's contributions toward the payment of the joint tax liability, figure your contribution by adding the tax withheld on your wages and your share of joint estimated tax payments or tax paid with the return. Freefile If the original return for the carryback year resulted in an overpayment, reduce your contribution by your share of the tax refund. Freefile Figure your share of a joint payment or refund by the same method used in figuring your share of the joint tax liability. Freefile Use your taxable income as originally reported on the joint return in steps (1) and (2) above, and substitute the joint payment or refund for the refigured joint tax in step (5). Freefile Change in Filing Status If you and your spouse were married and filed a joint return for each year involved in figuring NOL carrybacks and carryovers, figure the NOL deduction on a joint return as you would for an individual. Freefile However, treat the NOL deduction as a joint NOL. Freefile If you and your spouse were married and filed separate returns for each year involved in figuring NOL carrybacks and carryovers, the spouse who sustained the loss may take the NOL deduction on a separate return. Freefile Special rules apply for figuring the NOL carrybacks and carryovers of married people whose filing status changes for any tax year involved in figuring an NOL carryback or carryover. Freefile Separate to joint return. Freefile   If you and your spouse file a joint return for a carryback or carryforward year, and were married but filed separate returns for any of the tax years involved in figuring the NOL carryback or carryover, treat the separate carryback or carryover as a joint carryback or carryover. Freefile Joint to separate returns. Freefile   If you and your spouse file separate returns for a carryback or carryforward year, but filed a joint return for any or all of the tax years involved in figuring the NOL carryover, figure each of your carryovers separately. Freefile Joint return in NOL year. Freefile   Figure each spouse's share of the joint NOL through the following steps. Freefile Figure each spouse's NOL as if he or she filed a separate return. Freefile See How To Figure an NOL , earlier. Freefile If only one spouse has an NOL, stop here. Freefile All of the joint NOL is that spouse's NOL. Freefile If both spouses have an NOL, multiply the joint NOL by a fraction, the numerator of which is spouse A's NOL figured in (1) and the denominator of which is the total of the spouses' NOLs figured in (1). Freefile The result is spouse A's share of the joint NOL. Freefile The rest of the joint NOL is spouse B's share. Freefile Example 1. Freefile Mark and Nancy are married and file a joint return for 2013. Freefile They have an NOL of $5,000. Freefile They carry the NOL back to 2011, a year in which Mark and Nancy filed separate returns. Freefile Figured separately, Nancy's 2013 deductions were more than her income, and Mark's income was more than his deductions. Freefile Mark does not have any NOL to carry back. Freefile Nancy can carry back the entire $5,000 NOL to her 2011 separate return. Freefile Example 2. Freefile Assume the same facts as in Example 1 , except that both Mark and Nancy had deductions in 2013 that were more than their income. Freefile Figured separately, his NOL is $1,800 and her NOL is $3,000. Freefile The sum of their separate NOLs ($4,800) is less than their $5,000 joint NOL because his deductions included a $200 net capital loss that is not allowed in figuring his separate NOL. Freefile The loss is allowed in figuring their joint NOL because it was offset by Nancy's capital gains. Freefile Mark's share of their $5,000 joint NOL is $1,875 ($5,000 × $1,800/$4,800) and Nancy's is $3,125 ($5,000 − $1,875). Freefile Joint return in previous carryback or carryforward year. Freefile   If only one spouse had an NOL deduction on the previous year's joint return, all of the joint carryover is that spouse's carryover. Freefile If both spouses had an NOL deduction (including separate carryovers of a joint NOL, figured as explained in the previous discussion ), figure each spouse's share of the joint carryover through the following steps. Freefile Figure each spouse's modified taxable income as if he or she filed a separate return. Freefile See Modified taxable income under How To Figure an NOL Carryover , later. Freefile Multiply the joint modified taxable income you used to figure the joint carryover by a fraction, the numerator of which is spouse A's modified taxable income figured in (1) and the denominator of which is the total of the spouses' modified taxable incomes figured in (1). Freefile This is spouse A's share of the joint modified taxable income. Freefile Subtract the amount figured in (2) from the joint modified taxable income. Freefile This is spouse B's share of the joint modified taxable income. Freefile Reduce the amount figured in (3), but not below zero, by spouse B's NOL deduction. Freefile Add the amounts figured in (2) and (4). Freefile Subtract the amount figured in (5) from spouse A's NOL deduction. Freefile This is spouse A's share of the joint carryover. Freefile The rest of the joint carryover is spouse B's share. Freefile Example. Freefile Sam and Wanda filed a joint return for 2011 and separate returns for 2012 and 2013. Freefile In 2013, Sam had an NOL of $18,000 and Wanda had an NOL of $2,000. Freefile They choose to carry back both NOLs 2 years to their 2011 joint return and claim a $20,000 NOL deduction. Freefile Their joint modified taxable income (MTI) for 2011 is $15,000, and their joint NOL carryover to 2012 is $5,000 ($20,000 – $15,000). Freefile Sam and Wanda each figure their separate MTI for 2011 as if they had filed separate returns. Freefile Then they figure their shares of the $5,000 carryover as follows. Freefile Step 1. Freefile   Sam's separate MTI $9,000 Wanda's separate MTI + 3,000 Total MTI $12,000 Step 2. Freefile   Joint MTI $15,000 Sam's MTI ÷ total MTI ($9,000 ÷ $12,000) × . Freefile 75 Sam's share of joint MTI $11,250 Step 3. Freefile   Joint MTI $15,000 Sam's share of joint MTI − 11,250 Wanda's share of joint MTI $3,750 Step 4. Freefile   Wanda's share of joint MTI $3,750 Wanda's NOL deduction − 2,000 Wanda's remaining share $1,750 Step 5. Freefile   Sam's share of joint MTI $11,250 Wanda's remaining share + 1,750 Joint MTI to be offset $13,000 Step 6. Freefile   Sam's NOL deduction $18,000 Joint MTI to be offset − 13,000 Sam's carryover to 2012 $5,000 Joint carryover to 2012 $5,000 Sam's carryover − 5,000 Wanda's carryover to 2012 $-0- Wanda's $2,000 NOL deduction offsets $2,000 of her $3,750 share of the joint modified taxable income and is completely used up. Freefile She has no carryover to 2012. Freefile Sam's $18,000 NOL deduction offsets all of his $11,250 share of joint modified taxable income and the remaining $1,750 of Wanda's share. Freefile His carryover to 2012 is $5,000. Freefile Illustrated Form 1045 The following example illustrates how to use Form 1045 to claim an NOL deduction in a carryback year. Freefile It includes a filled-in page 1 of Form 1045. Freefile Example. Freefile Martha Sanders is a self-employed contractor. Freefile Martha's 2013 deductions are more than her 2013 income because of a business loss. Freefile She uses Form 1045 to carry back her NOL 2 years and claim an NOL deduction in 2011. Freefile Her filing status in both years was single. Freefile See the filled-in Form 1045 later. Freefile Martha figures her 2013 NOL on Form 1045, Schedule A (not shown). Freefile (For an example using Form 1045, Schedule A, see Illustrated Form 1045, Schedule A under How To Figure an NOL , earlier. Freefile ) She enters the $10,000 NOL from Form 1045, Schedule A, line 25, on Form 1045, line 1a. Freefile Martha completes lines 10 through 25, using the “Before carryback” column under the column for the second preceding tax year ended 12/31/11 on page 1 of Form 1045 using the following amounts from her 2011 return. Freefile 2011 Adjusted gross income $50,000 Itemized deductions:     Medical expenses [$6,000 − ($50,000 × 7. Freefile 5%)] $2,250   State income tax + 2,000   Real estate tax + 4,000   Home mortgage interest + 5,000   Total itemized deductions $13,250 Exemption $3,700 Income tax $4,550 Self-employment tax $6,120   Martha refigures her taxable income for 2011 after carrying back her 2013 NOL as follows: 2011 Adjusted gross income $50,000 Less:     NOL from 2013 −10,000 2011 Adjusted gross income after carryback $40,000 Less:     Itemized deductions:     Medical expenses [$6,000 − ($40,000 × 7. Freefile 5%)] $3,000   State income tax + 2,000   Real estate tax + 4,000   Home mortgage interest + 5,000   Total itemized deductions −14,000 Less:     Exemption − 3,700 2011 Taxable income after carryback $22,300 Martha then completes lines 10 through 25, using the “After carryback” column under the column for the second preceding tax year ended 12/31/11. Freefile On line 10, Martha enters her $10,000 NOL deduction. Freefile Her new adjusted gross income on line 11 is $40,000 ($50,000 − $10,000). Freefile To complete line 12, she must refigure her medical expense deduction using her new adjusted gross income. Freefile Her refigured medical expense deduction is $3,000 [$6,000 − ($40,000 × 7. Freefile 5%)]. Freefile This increases her total itemized deductions to $14,000 [$13,250 + ($3,000 − $2,250)]. Freefile Martha uses her refigured taxable income ($22,300) from line 15, and the tax tables in her 2011 Form 1040 instructions to find her income tax. Freefile She enters the new amount, $2,924, on line 16, and her new total tax liability, $9,044, on line 25. Freefile Martha used up her $10,000 NOL in 2011 so she does not complete a column for the first preceding tax year ended 12/31/2012. Freefile The decrease in tax because of her NOL deduction (line 27) is $1,612. Freefile Martha files Form 1045 after filing her 2013 return, but no later than December 31, 2014. Freefile She mails it to the Internal Revenue Service Center for the place where she lives as shown in the 2013 instructions for Form 1040 and attaches a copy of her 2013 return (including the applicable forms and schedules). Freefile This image is too large to be displayed in the current screen. Freefile Please click the link to view the image. Freefile Form 1045, page 1 How To Figure an NOL Carryover If your NOL is more than your taxable income for the year to which you carry it (figured before deducting the NOL), you may have an NOL carryover. Freefile You must make certain modifications to your taxable income to determine how much NOL you will use up in that year and how much you can carry over to the next tax year. Freefile Your carryover is the excess of your NOL deduction over your modified taxable income for the carryback or carryforward year. Freefile If your NOL deduction includes more than one NOL, apply the NOLs against your modified taxable income in the same order in which you incurred them, starting with the earliest. Freefile Modified taxable income. Freefile   Your modified taxable income is your taxable income figured with the following changes. Freefile You cannot claim an NOL deduction for the NOL carryover you are figuring or for any later NOL. Freefile You cannot claim a deduction for capital losses in excess of your capital gains. Freefile Also, you must increase your taxable income by the amount of any section 1202 exclusion. Freefile You cannot claim the domestic production activities deduction. Freefile You cannot claim a deduction for your exemptions for yourself, your spouse, or dependents. Freefile You must figure any item affected by the amount of your adjusted gross income after making the changes in (1), (2), and (3), above, and certain other changes to your adjusted gross income that result from (1), (2), and (3). Freefile This includes income and deduction items used to figure adjusted gross income (for example, IRA deductions), as well as certain itemized deductions. Freefile To figure a charitable contribution deduction, do not include deductions for NOL carrybacks in the change in (1) but do include deductions for NOL carryforwards from tax years before the NOL year. Freefile   Your taxable income as modified cannot be less than zero. Freefile Form 1045, Schedule B. Freefile   You can use Form 1045, Schedule B, to figure your modified taxable income for carryback years and your carryover from each of those years. Freefile Do not use Form 1045, Schedule B, for a carryforward year. Freefile If your 2013 return includes an NOL deduction from an NOL year before 2013 that reduced your taxable income to zero (to less than zero, if an estate or trust), see NOL Carryover From 2013 to 2014 , later. Freefile Illustrated Form 1045, Schedule B The following example illustrates how to figure an NOL carryover from a carryback year. Freefile It includes a filled-in Form 1045, Schedule B. Freefile Example. Freefile Ida Brown runs a small clothing shop. Freefile In 2013, she has an NOL of $36,000 that she carries back to 2011. Freefile She has no other carrybacks or carryforwards to 2011. Freefile Ida's adjusted gross income in 2011 was $35,000, consisting of her salary of $36,000 minus a $1,000 capital loss deduction. Freefile She is single and claimed only one personal exemption of $3,700. Freefile During that year, she gave $1,450 in charitable contributions. Freefile Her medical expenses were $3,000. Freefile She also deducted $1,650 in taxes and $3,125 in home mortgage interest. Freefile Her deduction for charitable contributions was not limited because her contributions, $1,450, were less than 50% of her adjusted gross income. Freefile The deduction for medical expenses was limited to expenses over 7. Freefile 5% of adjusted gross income (. Freefile 075 × $35,000 = $2,625; $3,000 − $2,625 = $375). Freefile The deductions for taxes and home mortgage interest were not subject to any limits. Freefile She was able to claim $6,600 ($1,450 + $375 + $1,650 + $3,125) in itemized deductions and a personal exemption deduction of $3,700 for 2011. Freefile She had no other deductions in 2011 (except the NOL deduction). Freefile Her taxable income (figured without the NOL deduction) for the year was $24,700. Freefile Ida's adjusted gross income in 2012 was $9,325, consisting of net business income from the clothing shop of $12,325 and a net capital loss of $3,000. Freefile She did not itemize her deductions in 2012. Freefile She deducted the standard deduction of $5,950 and the personal exemption deduction of $3,800. Freefile She had no other deductions in 2012 (other than the NOL deduction). Freefile Her taxable income, therefore, was ($425). Freefile Ida's $36,000 carryback will result in her having 2011 taxable income of zero. Freefile She then completes the column for the second preceding tax year ended 12/31/11 on Form 1045, Schedule B, to figure how much of her NOL she uses up in 2011 and how much she can carry over to 2012. Freefile She completes the column for the first preceding tax year ended 12/31/12. Freefile See the illustrated Form 1045, Schedule B , shown later. Freefile Column 1, line 1. Freefile Ida enters $36,000, her 2013 net operating loss, on line 1. Freefile Column 1, line 2. Freefile She enters $24,700, her 2011 taxable income (figured without the NOL deduction), on line 2. Freefile Column 1, line 3. Freefile Ida enters her net capital loss deduction of $1,000 on line 3. Freefile Column 1, lines 4 and 5. Freefile Ida had no section 1202 exclusion or domestic production activities deduction in 2011. Freefile She enters zero on lines 4 and 5. Freefile Column 1, line 6. Freefile Although Ida's entry on line 3 modifies her adjusted gross income, that does not affect any other items included in her adjusted gross income. Freefile Ida enters zero on line 6. Freefile Column 1, line 7. Freefile Ida had itemized deductions and entered $1,000 on line 3, so she completes lines 11 through 38 to figure her adjustment to itemized deductions. Freefile On line 7, she enters the total adjustment from line 38. Freefile Column 1, line 8. Freefile Ida enters the deduction for her personal exemption of $3,700 for 2011. Freefile Column 1, line 9. Freefile After combining lines 2 through 8, Ida's modified taxable income is $29,475. Freefile Column 1, line 10. Freefile Ida figures her carryover to 2012 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). Freefile She enters the $6,525 carryover on line 10. Freefile She also enters the $6,525 as her NOL deduction for 2012 on Form 1045, page 1, line 10, in the “After carryback” column under the column for the first preceding tax year ended 12/31/12. Freefile (For an illustrated example of page 1 of Form 1045, see Illustrated Form 1045 under How To Claim an NOL Deduction , earlier. Freefile ) Next, Ida completes column 2 for the first preceding tax year ended 12/31/12. Freefile Column 1, line 11. Freefile Ida's adjusted gross income for 2011 was $35,000. Freefile Column 1, line 12. Freefile She adds lines 3 through 6 and enters $1,000 on line 12. Freefile (This is her net capital loss deduction added back, which modifies her adjusted gross income. Freefile ) Column 1, line 13. Freefile Her modified adjusted gross income for 2011 is now $36,000. Freefile Column 1, line 14. Freefile On her 2011 tax return, she deducted $375 as medical expenses. Freefile Column 1, line 15. Freefile Her actual medical expenses were $3,000. Freefile Column 1, line 16. Freefile She multiplies her modified adjusted gross income, $36,000, by . Freefile 075. Freefile She enters $2,700 on line 16. Freefile Column 1, line 17. Freefile She substracts $2,700 from her actual medical expenses, $3,000. Freefile She enters $300 on line 17. Freefile This is her modified medical deduction. Freefile Column 1, line 18. Freefile The difference between her medical deduction and her modified medical deduction is $75. Freefile She enters this on line 18. Freefile Column 1, lines 19 through 21. Freefile Ida had no deduction for qualified mortgage insurance premiums in 2011. Freefile She skips lines 19 and 20 and enters zero on line 21. Freefile Column 1, line 22. Freefile She enters her modified adjusted gross income of $36,000 on line 22. Freefile Column 1, line 23. Freefile She had no other carrybacks to 2011 and enters zero on line 23. Freefile Column 1, line 24. Freefile Her modified adjusted gross income remains $36,000. Freefile Column 1, line 25. Freefile Her actual contributions for 2011 were $1,450, which she enters on line 25. Freefile Column 1, line 26. Freefile She now refigures her charitable contributions based on her modified adjusted gross income. Freefile Her contributions are well below the 50% limit, so she enters $1,450 on line 26. Freefile Column 1, line 27. Freefile The difference is zero. Freefile Column 1, lines 28 through 37. Freefile Ida had no casualty losses or deductions for miscellaneous items in 2011. Freefile She skips lines 28 through 31 and lines 33 through 36. Freefile Ida enters zero on lines 32 and 37. Freefile Column 1, line 38. Freefile She combines lines 18, 21, 27, 32, and 37 and enters $75 on line 38. Freefile She carries this figure to line 7. Freefile Column 2, line 1. Freefile Ida enters $6,525, the carryback of her 2013 NOL to 2012, from column 1, line 10, on line 1. Freefile Column 2, line 2. Freefile She enters ($425), her 2012 taxable income, on line 2. Freefile Column 2, line 3. Freefile Ida enters her net capital loss deduction of $3,000 on line 3. Freefile Column 2, lines 4 and 5. Freefile Ida had no section 1202 exclusion or domestic production activities deduction in 2012. Freefile She enters zero on lines 4 and 5. Freefile Column 2, line 6. Freefile Although Ida's entry on line 3 modifies her adjusted gross income, that does not affect any other items included in her adjusted gross income. Freefile Ida enters zero on line 6. Freefile Column 2, line 7. Freefile Because Ida did not itemize deductions on her 2012 tax return, she enters zero on line 7. Freefile Column 2, line 8. Freefile Ida enters the deduction for her personal exemption of $3,800 for 2012. Freefile Column 2, line 9. Freefile After combining lines 2 through 8, Ida's modified taxable income is $6,375. Freefile Column 2, line 10. Freefile Ida figures her carryforward to 2014 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). Freefile She enters the $150 carryover on line 10. Freefile This image is too large to be displayed in the current screen. Freefile Please click the link to view the image. Freefile Form 1045, page 3 This image is too large to be displayed in the current screen. Freefile Please click the link to view the image. Freefile Form 1045, page 4 NOL Carryover From 2013 to 2014 If you had an NOL deduction carried forward from a year prior to 2013 that resulted in your having taxable income on your 2013 return of zero (of less than zero, if an estate or trust), complete Table 1 , Worksheet for NOL Carryover From 2013 to 2014, on the following pages. Freefile It will help you figure your NOL to carry to 2014. Freefile Keep the worksheet for your records. Freefile Worksheet Instructions At the top of the worksheet, enter the NOL year for which you are figuring the carryover. Freefile More than one NOL. Freefile   If your 2013 NOL deduction includes amounts for more than one loss year, complete this worksheet only for one loss year. Freefile To determine which year, start with your earliest NOL and subtract each NOL separately from your taxable income figured without the NOL deduction. Freefile Complete this worksheet for the earliest NOL that results in your having taxable income below zero. Freefile Your NOL carryover to 2014 is the total of the amount on line 10 of the worksheet and all later NOL amounts. Freefile Example. Freefile Your taxable income for 2013 is $5,000 without your $9,000 NOL deduction. Freefile Your NOL deduction includes a $2,000 carryover from 2011 and a $7,000 carryover from 2012. Freefile Subtract your 2011 NOL of $2,000 from $5,000. Freefile This gives you taxable income of $3,000. Freefile Your 2011 NOL is now completely used up. Freefile Subtract your $7,000 2012 NOL from $3,000. Freefile This gives you taxable income of ($4,000). Freefile You now complete the worksheet for your 2012 NOL. Freefile Your NOL carryover to 2014 is the unused part of your 2012 NOL from line 10 of the worksheet. Freefile Line 2. Freefile   Treat your NOL deduction for the NOL year entered at the top of the worksheet and later years as a positive amount. Freefile Add it to your negative taxable income (figured without the NOL deduction). Freefile Enter the result on line 2. Freefile Line 6. Freefile   You must refigure the following income and deductions based on adjusted gross income. Freefile The special allowance for passive activity losses from rental real estate activities. Freefile Taxable social security and tier 1 railroad retirement benefits. Freefile IRA deductions. Freefile Excludable savings bond interest. Freefile Excludable employer-provided adoption benefits. Freefile The student loan interest deduction. Freefile The tuition and fees deduction. Freefile   If none of these items apply to you, enter zero on line 6. Freefile Otherwise, increase your adjusted gross income by the total of lines 3 through 5 and your NOL deduction for the NOL year entered at the top of the worksheet and later years. Freefile Using this increased adjusted gross income, refigure the items that apply, in the order listed above. Freefile Your adjustment for each item is the difference between the refigured amount and the amount included on your return. Freefile Combine the adjustments for previous items with your adjusted gross income before refiguring the next item. Freefile Keep a record of your computations. Freefile   Enter your total adjustments for the above items on line 6. Freefile Line 7. Freefile   Enter zero if you claimed the standard deduction or the amounts on lines 3 through 5 are zero. Freefile Otherwise, use lines 11 through 33 of the worksheet to figure the amount to enter on this line. Freefile Complete only those sections that apply to you. Freefile Estates and trusts. Freefile   Enter zero on line 7 if you did not claim any miscellaneous deductions on Form 1041, line 15c, or a casualty or theft loss. Freefile Otherwise, refigure these deductions by substituting modified adjusted gross income (see below ) for adjusted gross income. Freefile Subtract the recomputed deductions from those claimed on the return. Freefile Enter the result on line 7. Freefile Modified adjusted gross income. Freefile   To refigure miscellaneous itemized deductions of an estate or trust (Form 1041, line 15c), modified adjusted gross income is the total of the following amounts. Freefile The adjusted gross income on the return. Freefile The amounts from lines 3 through 5 of the worksheet. Freefile The exemption amount from Form 1041, line 20. Freefile The NOL deduction for the NOL year entered at the top of the worksheet and for later years. Freefile   To refigure the casualty and theft loss deduction of an estate or trust, modified adjusted gross income is the total of the following amounts. Freefile The adjusted gross income amount you used to figure the deduction claimed on the return. Freefile The amounts from lines 3 through 5 of the worksheet. Freefile The NOL deduction for the NOL year entered at the top of the worksheet and for later years. Freefile Line 11. Freefile   Treat your NOL deduction for the NOL year entered at the top of the worksheet and for later years as a positive amount. Freefile Add it to your adjusted gross income. Freefile Enter the result on line 11. Freefile Line 20. Freefile   Is your modified adjusted gross income from line 13 of this worksheet more than $100,000 ($50,000 if married filing separately)?   □ Yes. Freefile Your deduction is limited. Freefile Refigure your deduction using the Mortgage Insurance Premiums Deduction Worksheet in the 2013 Instructions for Form 1045. Freefile On line 2 of the Mortgage Insurance Premiums Deduction Worksheet, enter the amount from line 13 of this worksheet. Freefile   □ No. Freefile Your deduction is not limited. Freefile Enter the amount from line 19 on line 20 and enter -0- on line 21. Freefile Line 23. Freefile   If you had a contributions carryover from 2012 to 2013 and your NOL deduction includes an amount from an NOL year before 2012, you may have to reduce your contributions carryover. Freefile Reduce the contributions carryover by the amount of any adjustment you made to your 2012 charitable contributions deduction when figuring your NOL carryover to 2013. Freefile Use the reduced contributions carryover to figure the amount to enter on line 23. Freefile Please click here for the text description of the image. Freefile Worksheet for NOL Carryover Worksheet for NOL Carryover (Continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Freefile Free help with your tax return. Freefile   You can get free help preparing your return nationwide from IRS-certified volunteers. Freefile The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Freefile The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Freefile Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Freefile In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Freefile To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Freefile gov, download the IRS2Go app, or call 1-800-906-9887. Freefile   As part of the TCE program, AARP offers the Tax-Aide counseling program. Freefile To find the nearest AARP Tax-Aide site, visit AARP's website at www. Freefile aarp. Freefile org/money/taxaide or call 1-888-227-7669. Freefile For more information on these programs, go to IRS. Freefile gov and enter “VITA” in the search box. Freefile Internet. Freefile    IRS. Freefile gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Freefile Download the free IRS2Go app from the iTunes app store or from Google Play. Freefile Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Freefile Check the status of your 2013 refund with the Where's My Refund? application on IRS. Freefile gov or download the IRS2Go app and select the Refund Status option. Freefile The IRS issues more than 9 out of 10 refunds in less than 21 days. Freefile Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Freefile You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Freefile The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Freefile Use the Interactive Tax Assistant (ITA) to research your tax questions. Freefile No need to wait on the phone or stand in line. Freefile The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Freefile When you reach the response screen, you can print the entire interview and the final response for your records. Freefile New subject areas are added on a regular basis. Freefile  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Freefile gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Freefile You can use the IRS Tax Map to search publications and instructions by topic or keyword. Freefile The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Freefile When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Freefile Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Freefile You can also ask the IRS to mail a return or an account transcript to you. Freefile Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Freefile gov or by calling 1-800-908-9946. Freefile Tax return and tax account transcripts are generally available for the current year and the past three years. Freefile Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Freefile Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Freefile If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Freefile Check the status of your amended return using Where's My Amended Return? Go to IRS. Freefile gov and enter Where's My Amended Return? in the search box. Freefile You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Freefile It can take up to 3 weeks from the date you mailed it to show up in our system. Freefile Make a payment using one of several safe and convenient electronic payment options available on IRS. Freefile gov. Freefile Select the Payment tab on the front page of IRS. Freefile gov for more information. Freefile Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Freefile Figure your income tax withholding with the IRS Withholding Calculator on IRS. Freefile gov. Freefile Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Freefile Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Freefile gov. Freefile Request an Electronic Filing PIN by going to IRS. Freefile gov and entering Electronic Filing PIN in the search box. Freefile Download forms, instructions and publications, including accessible versions for people with disabilities. Freefile Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Freefile gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Freefile An employee can answer questions about your tax account or help you set up a payment plan. Freefile Before you visit, check the Office Locator on IRS. Freefile gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Freefile If you have a special need, such as a disability, you can request an appointment. Freefile Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Freefile Apply for an Employer Identification Number (EIN). Freefile Go to IRS. Freefile gov and enter Apply for an EIN in the search box. Freefile Read the Internal Revenue Code, regulations, or other official guidance. Freefile Read Internal Revenue Bulletins. Freefile Sign up to receive local and national tax news and more by email. Freefile Just click on “subscriptions” above the search box on IRS. Freefile gov and choose from a variety of options. Freefile Phone. Freefile    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Freefile Download the free IRS2Go app from the iTunes app store or from Google Play. Freefile Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Freefile gov, or download the IRS2Go app. Freefile Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Freefile The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Freefile Most VITA and TCE sites offer free electronic filing. Freefile Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Freefile Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Freefile Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Freefile If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Freefile The IRS issues more than 9 out of 10 refunds in less than 21 days. Freefile Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Freefile Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Freefile The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Freefile Note, the above information is for our automated hotline. Freefile Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Freefile Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Freefile You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Freefile It can take up to 3 weeks from the date you mailed it to show up in our system. Freefile Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Freefile You should receive your order within 10 business days. Freefile Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Freefile If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Freefile Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Freefile The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Freefile These individuals can also contact the IRS through relay services such as the Federal Relay Service. Freefile Walk-in. Freefile   You can find a selection of forms, publications and services — in person. Freefile Products. Freefile You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Freefile Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Freefile Services. Freefile You can walk in to your local TAC for face-to-face tax help. Freefile An employee can answer questions about your tax account or help you set up a payment plan. Freefile Before visiting, use the Office Locator tool on IRS. Freefile gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Freefile Mail. Freefile   You can send your order for forms, instructions, and publications to the address below. Freefile You should receive a response within 10 business days after your request is received. Freefile Internal Revenue Service 1201 N. Freefile Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Freefile The Taxpayer Advocate Service (TAS) is your voice at the IRS. Freefile Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Freefile   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Freefile We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Freefile You face (or your business is facing) an immediate threat of adverse action. Freefile You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Freefile   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Freefile Here's why we can help: TAS is an independent organization within the IRS. Freefile Our advocates know how to work with the IRS. Freefile Our services are free and tailored to meet your needs. Freefile We have offices in every state, the District of Columbia, and Puerto Rico. Freefile   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. Freefile   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Freefile If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Freefile Low Income Taxpayer Clinics Low Income
Print - Click this link to Print this page

Contact My Local Office in Rhode Island

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Providence  380 Westminster St.
Providence, RI 02903 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

Services Provided

(401) 525-4282 
Warwick  60 Quaker Ln.
Warwick, RI 02886 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

Services Provided

(401) 826-4797 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses). 

For information on where to file your tax return please see Where to File Addresses

The Taxpayer Advocate Service: Call (401) 528-1921 in Providence or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these program for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
380 Westminster Street
Providence, RI  02903

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Freefile

Freefile Publication 3920 - Introductory Material Table of Contents Introduction Useful Items - You may want to see: Introduction This publication explains some of the provisions of the Victims of Terrorism Tax Relief Act of 2001. Freefile Under this Act, the federal income tax liability of those killed in the following attacks is forgiven for certain tax years. Freefile The April 19, 1995, attack on the Alfred P. Freefile Murrah Federal Building (Oklahoma City attack). Freefile The September 11, 2001, attacks on the World Trade Center, the Pentagon, and United Airlines Flight 93 in Somerset County, Pennsylvania (September 11 attacks). Freefile Terrorist attacks involving anthrax occurring after September 10, 2001, and before January 1, 2002 (anthrax attacks). Freefile The Act also provides other types of relief. Freefile For example, it provides that the following amounts are not included in income. Freefile Payments from the September 11th Victim Compensation Fund of 2001. Freefile Qualified disaster relief payments made after September 10, 2001, to cover personal, family, living, or funeral expenses incurred because of a terrorist attack. Freefile Certain disability payments received in tax years ending after September 10, 2001, for injuries sustained in a terrorist attack. Freefile Death benefits paid by an employer to the survivor of an employee if the benefits are paid because the employee died as a result of a terrorist attack. Freefile Debt cancellations made after September 10, 2001, and before January 1, 2002, because an individual died as a result of the September 11 attacks or anthrax attacks. Freefile Worksheet A. Freefile Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Freefile 1       2 Enter the total tax from the decedent's income tax return. Freefile See Table 1 on page 5 for the line number for years before 2002. Freefile 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Freefile (These taxes are not eligible for forgiveness. Freefile )           a Self-employment tax. Freefile 3a         b Social security and Medicare tax on tip income not reported to employer. Freefile 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Freefile 3c         d Tax on excess accumulation in qualified retirement plans. Freefile 3d         e Household employment taxes. Freefile 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Freefile 3f         g Tax on golden parachute payments. Freefile 3g       4 Add lines 3a through 3g. Freefile 4       5 Tax to be forgiven. Freefile Subtract line 4 from line 2. Freefile 5       Note. Freefile If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Freefile Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Freefile If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Freefile The IRS will determine the amount to be refunded. Freefile Worksheet A. Freefile Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Freefile 1       2 Enter the total tax from the decedent's income tax return. Freefile See Table 1 on page 5 for the line number for years before 2002. Freefile 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Freefile (These taxes are not eligible for forgiveness. Freefile )           a Self-employment tax. Freefile 3a         b Social security and Medicare tax on tip income not reported to employer. Freefile 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Freefile 3c         d Tax on excess accumulation in qualified retirement plans. Freefile 3d         e Household employment taxes. Freefile 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Freefile 3f         g Tax on golden parachute payments. Freefile 3g       4 Add lines 3a through 3g. Freefile 4       5 Tax to be forgiven. Freefile Subtract line 4 from line 2. Freefile 5       Note. Freefile If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Freefile Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Freefile If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Freefile The IRS will determine the amount to be refunded. Freefile Useful Items - You may want to see: Publication 547 Casualties, Disasters, and Thefts 559 Survivors, Executors, and Administrators Form (and Instructions) 706 United States Estate (and Generation- Skipping Transfer) Tax Return 1040 U. Freefile S. Freefile Individual Income Tax Return 1040NR U. Freefile S. Freefile Nonresident Alien Income Tax Return 1040X Amended U. Freefile S. Freefile Individual Income Tax Return 1041 U. Freefile S. Freefile Income Tax Return for Estates and Trusts 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer 4506 Request for Copy or Transcript of Tax Form Prev  Up  Next   Home   More Online Publications