Specific Instructions

Address

P.O. box.   Enter your box number only if your post office does not deliver mail to your street address.

Foreign address.   Enter the information in the following order: City, province or state, and country. Follow the country's practice for entering the postal code. Do not abbreviate the country name.

Line 1b—Unused General Business Credit

If you claim a tentative refund based on the carryback of an unused general business credit, attach a detailed computation showing how you figured the credit carryback and a recomputation of the credit after you apply the carryback. An unused eligible small business credit (ESBC) can be carried back 5 years. An unused general business credit, that is not an ESBC, must be carried back 1 year.

For details about ESBCs and the carryback of ESBCs, see the Instructions for Form 3800.

Note.

If you are carrying back an ESBC, write “SBJA 2012” at the top of page 1 of Form 1045 for the earliest preceding tax year.

If you filed a joint return (or separate return) for some but not all of the tax years involved in figuring the unused credit carryback, special rules apply to figuring the carryback. See the Instructions for Form 3800.

Line 1c—Net Section 1256 Contracts Loss

An individual can elect to carry back a net section 1256 contracts loss to each of the 3 tax years preceding the loss year. An estate or trust is not eligible to make this election. To make the election, check box D at the top of Form 6781. The amount which can be used in any prior tax year cannot exceed the net section 1256 contract gain in that year and cannot increase or create an NOL for that year. Reflect the carryback as a reduction to your adjusted gross income in the “After carryback” column on line 11. Attach to Form 1045 a copy of Form 6781 and Schedule D (Form 1040) for the year of the net section 1256 contracts loss and an amended Form 6781 and an amended Schedule D (Form 1040) for each carryback year. For more details, see section 1212(c).

Line 9

If an NOL or net section 1256 contracts loss carryback eliminates or reduces a prior year foreign tax credit, you cannot use Form 1045 to carry the released foreign tax credits to earlier years. Also, if the released foreign tax credits result in the release of general business credits, you cannot use Form 1045 to carry the released general business credits to earlier years. Instead, you must file Form 1040X or other amended return to claim refunds for those years. For details, see Rev. Rul. 82-154, 1982-2 C.B. 394.

Lines 10 Through 27—Computation of Decrease in Tax

Figure the amount of decrease, attributable to the carryback, in tax previously determined for each tax year before the tax year of the net operating loss, net capital loss, or unused credit. The tax previously determined will be the tax shown on the return as filed, increased by any amounts assessed (or collected without assessment) as deficiencies before the date of the filing of the application for a tentative carryback adjustment, and decreased by any amounts abated, credited, refunded, or otherwise repaid prior to that date. Any items as to which you and the IRS are in disagreement at the time of the filing of the application shall, for purposes of computing the tentative carryback adjustment, be taken into account in ascertaining the tax previously determined only if, and to the extent that, they were reported on the return, or were reflected in any amounts assessed (or collected without assessment) as deficiencies, or in any amounts abated, credited, refunded, or otherwise repaid, before the date of filing the application.

After figuring the tax previously determined, figure the decrease in tax previously determined attributable to the carryback and any related adjustments on the basis of the items of tax taken into account in computing the tax previously determined. In determining any decrease attributable to the carryback or any related adjustment, items shall be taken into account only to the extent that they were reported on the return, or were reflected in amounts assessed (or collected without assessment) as deficiencies, or in amounts abated, credited, refunded, or otherwise repaid, before the date of filing the application for a tentative carryback adjustment. If you and the IRS are in disagreement as to the proper treatment of any item, it shall be assumed, for purposes of determining the decrease in the tax previously determined, that you reported the item correctly unless, and to the extent that, the disagreement has resulted in the assessment of a deficiency (or the collection of an amount without an assessment), or the allowing or making of an abatement, credit, refund, or other repayment, before the date of filing the application.

Use one pair of columns to enter amounts before and after carryback for each year to which the loss or credit is being carried. Start with the earliest carryback year. A net section 1256 contracts loss can be carried back 3 years. See the instructions for line 10, later, to figure the tax years to which you can carry an NOL. Use the remaining pairs of columns for each consecutive preceding tax year until the loss is fully absorbed. Enter the ordinal number of years the loss is being carried back and the date the carryback year ends in the spaces provided in the headings above line 10 for each pair of columns.

Example.

Your tax year is the 2013 calendar year and you are carrying an NOL back 2 years. You enter “2nd” and “12/31/11” in the left column heading in the spaces provided. The column heading now reads “2nd preceding tax year ended 12/31/11.

For each carryback year, enter in the column labeled “Before carryback” the amounts for the carryback year as shown on your original or amended return. If the amounts were previously adjusted by you or the IRS, enter the amounts after adjustment.

Line 10—NOL Deduction After Carryback

Use the following rules to figure the tax years to which you must carry an NOL shown on Schedule A, line 25. If an NOL is not fully absorbed in a year to which it is carried, complete Schedule B to figure the amount to carry to the next carryback year.

Note.   You may need to use additional Forms 1045 to carry back an NOL. Complete lines 1 through 9 and Schedule A on only one Form 1045. Use this Form 1045 for the earliest preceding tax years. You must sign this Form 1045 but do not need to sign the other Forms 1045.

General rule.   You generally must carry back the entire NOL to the 2nd tax year before the loss year. Any loss not used in the 2nd preceding year is then carried to the 1st preceding year. Any loss not applied in the 2 preceding years can be carried forward up to 20 years. The 2-year carryback period does not apply to the portion of an NOL attributable to an eligible loss; a farming loss; a qualified disaster; or a specified liability loss.

Eligible losses.   To the extent the NOL is an eligible loss (defined earlier), it is carried back to the 3rd tax year before the loss. Any such loss not used in that year is carried to the 2nd and then the 1st preceding year. Any such loss that is not applied in the 3 preceding years can be carried forward up to 20 years.

  Only the eligible loss portion of the NOL can be carried back 3 years.

Example.

You have a $20,000 NOL of which only $5,000 is an eligible loss. The $5,000 eligible loss is carried back 3 years, but the remaining $15,000 loss is carried back only 2 years, even if you had modified taxable income of more than $5,000 in the 3rd preceding year.

Farming losses.   To the extent the NOL is a farming loss (defined earlier), that part of the loss is carried back to the 5th tax year before the loss. Any such loss not used in that year is carried to the 4th preceding year and then applied consecutively forward through the 1st preceding year. Any such loss not applied in the 5 preceding years can be carried forward up to 20 years.

  Only the farming loss portion of the NOL can be carried back 5 years.

Example.

You operate a farming business and incur an NOL of $50,000 for 2013. $25,000 of the NOL is attributable to income and deductions of your farming business; $10,000 is attributable to a fire in your personal residence (an eligible loss); and the remaining $15,000 is attributable to your spouse's work as an employee. The $25,000 farming loss is carried back 5 years; the $10,000 eligible loss is carried back 3 years; and the remaining $15,000 loss is carried back 2 years. Any unused portion of this NOL can be carried forward up to 20 years.

  You can make an election to figure the carryback period for a farming loss without regard to the special 5-year carryback rule. To make this election for 2013, attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are electing to treat any 2013 farming losses without regard to the special 5-year carryback rule. If you filed your original return on time, you can make the election on an amended return filed within 6 months after the due date of the return (excluding extensions). Attach the election to the amended return and write “Filed pursuant to section 301.9100-2” on the election statement. Once made, the election is irrevocable.

Qualified disaster losses.   To the extent the NOL is a qualified disaster loss, that part of the loss is carried back to the 5th tax year before the loss. Any such loss not used in that year is carried to the 4th preceding year and then applied consecutively forward through the 1st preceding year. Any such loss not applied in the 5 preceding years can be carried forward up to 20 years.

  Only the qualified disaster loss portion of the NOL can be carried back 5 years.

  You can make an election to figure the carryback period for a qualified disaster loss without regard to the special 5-year carryback rule. To make this election for 2013, attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are electing to treat any 2013 qualified disaster losses without regard to the special 5-year carryback rule. If you filed your original return on time, you can make the election on an amended return filed within 6 months after the due date of the return (excluding extensions). Attach the election to the amended return and write “Filed pursuant to section 301.9100–2” on the election statement. Once made, the election is irrevocable.

Specified liability losses.   To the extent an NOL is a specified liability loss (defined earlier), that part of the loss is carried back to the 10th tax year before the loss. Any such loss not used in that year is carried to the 9th preceding year and then applied consecutively forward through the 1st preceding year. Any such loss that is not applied in the 10 preceding years can be carried forward up to 20 years.

  Only the specified liability loss portion of the NOL can be carried back 10 years.

  You can make an election to figure the carryback period for a specified liability loss without regard to the special 10-year carryback rule. To make this election for 2013, attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are electing to treat any 2013 specified liability losses without regard to the special 10-year carryback rule. If you filed your original return on time, you can make the election on an amended return filed within 6 months after the due date of the return (excluding extensions). Attach the election to the amended return and write “Filed pursuant to section 301.9100-2” on the election statement. Once made, the election is irrevocable.

Special rules.   Special rules apply if you filed a joint return (or a separate return) for some but not all of the tax years involved in figuring an NOL carryback. For details, see Pub. 536. Attach a computation showing how you figured the carryback.

Line 11—Adjusted Gross Income

Enter in the column labeled “Before carryback” your adjusted gross income (AGI) for the carryback year as shown on your original or amended return.

Enter in the column labeled “After carryback” your AGI refigured after you apply the NOL or net section 1256 contracts loss carryback and after you refigure any items of income and deductions that are based on or limited to a percentage of your AGI. Amounts to refigure include:

  • The special allowance for passive activity losses from rental real estate activities,

  • Taxable social security benefits,

  • IRA deductions,

  • The student loan interest deduction,

  • The tuition and fees deduction,

  • Excludable savings bond interest, and

  • The exclusion of amounts received under an employer's adoption assistance program.

Line 12—Deductions

Individuals.   Enter in the column labeled “Before carryback” for each applicable carryback year the amount shown (or as previously adjusted) on Form 1040:
  • Line 40 for 2010 – 2012,

  • Line 40a for 2009,

  • Line 40 for 2005 – 2008,

  • Line 39 for 2004, or

  • Line 37 for 2003.

  If you filed Form 1040NR, enter the amount shown (or as previously adjusted) on:
  • Line 38 for 2010 – 2012,

  • Line 37 for 2005 – 2009,

  • Line 36 for 2004, or

  • Line 35 for 2003.

  If you filed Form 1040A, enter the amount shown (or as previously adjusted) on:
  • Line 24 for 2010 – 2012,

  • Line 24a for 2009, or

  • Line 24 for 2003 – 2008.

  If you filed Form 1040EZ and checked any box on Form 1040EZ, line 5 (the “Yes” box on line 5 for 2003 – 2004), enter the amount shown (or as previously adjusted) on line E (line D for 2005) of the worksheet on the back of Form 1040EZ (for 2010 – 2012, Worksheet for Line 5–Dependents Who Checked One or Both Boxes). If you did not check any box (or you checked the “No” box for 2003 – 2004), enter:
  • $5,950 for 2012 ($11,900 if married),

  • $5,800 for 2011 ($11,600 if married),

  • $5,700 for 2010 ($11,400 if married),

  • $5,700 for 2009 ($11,400 if married),

  • $5,450 for 2008 ($10,900 if married),

  • $5,350 for 2007 ($10,700 if married),

  • $5,150 for 2006 ($10,300 if married),

  • $5,000 for 2005 ($10,000 if married),

  • $4,850 for 2004 ($9,700 if married), or

  • $4,750 for 2003 ($9,500 if married).

  If you used TeleFile for your original return and someone else could claim you as a dependent on their return, see Form 1040EZ for the year in question and complete the worksheet on the back of that form. Next, enter the amount from line E of that worksheet on Form 1045, line 12, in the column labeled “Before carryback” for the applicable year. If no one could claim you as a dependent, enter the amount listed above for that year.

After carryback.

If you itemized deductions in the carryback year, enter in the column labeled “After carryback” the total of your deductions after refiguring any that are based on, or limited to a percentage of, your adjusted gross income. To refigure your deductions, use your refigured adjusted gross income (Form 1045, line 11, using the “After carryback” column). Amounts you may have to refigure include:

  • Medical expenses,

  • Mortgage insurance premiums,

  • Personal casualty and theft losses, and

  • Miscellaneous deductions subject to the 2% limit.

Do not refigure your charitable contributions deduction.

If you have an NOL, see Pub. 536 for more information and examples.

If you did not itemize deductions in the carryback year, enter your standard deduction for that year.

Line 14—Exemptions

Individuals.   Enter in the column labeled “Before carryback” for each applicable carryback year, the amount shown (or as previously adjusted) on Form 1040:
  • Line 42 for 2005 – 2012,

  • Line 41 for 2004, or

  • Line 39 for 2003.

  If you filed Form 1040NR, enter the amount shown (or as previously adjusted) on:
  • Line 40 for 2010 – 2012,

  • Line 39 for 2005 – 2009,

  • Line 38 for 2004, or

  • Line 37 for 2003.

  If you filed Form 1040A, enter the amount shown (or as previously adjusted) on:
  • Line 26 for 2003 – 2012.

  If you filed Form 1040EZ and checked the “You” or “Spouse” box on Form 1040EZ, line 5 (the “Yes” box on line 5 for 2003 – 2004), enter zero (or the amount from line F (line E for 2005) of the 1040EZ worksheet if married). If you did not check any box (or you checked the “No” box for 2003 – 2004), enter:
  • $3,800 for 2012 ($7,600 if married),

  • $3,700 for 2011 ($7,400 if married),

  • $3,650 for 2010 ($7,300 if married),

  • $3,650 for 2009 ($7,300 if married),

  • $3,500 for 2008 ($7,000 if married),

  • $3,400 for 2007 ($6,800 if married),

  • $3,300 for 2006 ($6,600 if married),

  • $3,200 for 2005 ($6,400 if married),

  • $3,100 for 2004 ($6,200 if married), or

  • $3,050 for 2003 ($6,100 if married).

  If you used TeleFile for your original return and someone else could claim you as a dependent on their return, enter zero if you were single. If you were married, see Form 1040EZ for the year in question and complete the worksheet on the back of that form. Next, enter the amount from line F of that worksheet on Form 1045, line 14, in the column labeled “Before carryback” for the applicable year. If no one could claim you as a dependent, enter the amount listed above for that year.

After carryback.

If your deduction for personal exemptions in the carryback year was limited based on your adjusted gross income, enter in the column labeled “After carryback” the deduction for personal exemptions refigured using your refigured adjusted gross income (Form 1045, line 11, using the “After carryback” column).

Estates and trusts.    Enter in the columns labeled “Before carryback” and “After carryback” for each applicable carryback year the amount shown (or as previously adjusted) on Form 1041, line 20.

Line 16—Income Tax

Use your refigured taxable income (Form 1045, line 15, using the “After carryback” column) to refigure your tax for each carryback year. Include any tax from Form 4970, Tax on Accumulation Distribution of Trusts, and Form 4972, Tax on Lump-Sum Distributions. Attach any schedule used to figure your tax or an explanation of the method used to figure the tax and, if necessary, a detailed computation.

For example, write “Tax Computation Worksheet–2011” if this is the method used for that year. You do not need to attach a detailed computation of the tax in this case.

Line 17—Alternative Minimum Tax

The carryback of an NOL or net section 1256 contracts loss may affect or cause you to owe alternative minimum tax. Individuals use Form 6251 to figure this tax. Estates and trusts use Schedule I (Form 1041).

The 90% limit on the alternative tax net operating loss deduction (ATNOLD) does not apply to the portion of an ATNOLD attributable to qualified disaster losses or qualified GO Zone losses. Instead, the ATNOLD for the tax year is limited to the sum of:

  1. The smaller of:

    1. The sum of the ATNOL carrybacks and carryforwards to the tax year attributable to NOLs other than qualified disaster losses or qualified GO Zone losses, or

    2. 90% of AMTI for the tax year (figured without regard to the ATNOLD and any domestic production activities deduction), plus

  2. The smaller of:

    1. The sum of the ATNOL carrybacks to the tax year attributable to qualified disaster losses or qualified GO Zone losses, or

    2. AMTI for the tax year (figured without regard to the ATNOLD and any domestic production activities deduction) reduced by the amount determined under (1), above.

Line 19—General Business Credit

Enter in the column labeled “After carryback” for each affected carryback year the total of the recomputed general business credits, using Form 3800 (or using Forms 3800, 5884, 6478, 8586, 8835 (Part II), 8844, or 8846, if applicable, to recompute the general business credits for years before 2008).

If an NOL or net section 1256 contracts loss carryback eliminates or reduces a general business credit in an earlier year, you may be able to carry back the released credit 1 year. See section 39 and the instructions for Form 3800 for more details on general business credit carrybacks.

Line 20—Other Credits

See your tax return for the carryback year for any additional credits such as the earned income credit, credit for child and dependent care expenses, child tax credit, education credits, foreign tax credit, retirement savings contributions credit, etc., that will apply in that year. If you make an entry on this line, identify the credit(s) claimed.

After carryback.   Refigure any credits included on this line that are based on or limited by your adjusted gross income (AGI), modified adjusted gross income (MAGI), or tax liability. Use your refigured AGI, MAGI, or tax liability to refigure your credits for each carryback year.

Line 23—Self-Employment Tax

Do not adjust self-employment tax because of any carryback.

Line 24—Other Taxes

See your tax return for the carryback year for any other taxes not mentioned above, such as recapture taxes, tax on an IRA, etc., that will apply in that year. If you make an entry on this line, identify the taxes that apply.

Line 28—Overpayment of Tax Under Section 1341(b)(1)

If you apply for a tentative refund based on an overpayment of tax under section 1341(b)(1), enter it on this line. Also, attach a computation showing the information required by Regulations section 5.6411-1(d).

Signature

Individuals.    Sign and date Form 1045. If Form 1045 is filed jointly, both spouses must sign.

Estates.    All executors or administrators must sign and date Form 1045.

Trusts.    The fiduciary or an authorized representative must sign and date Form 1045.


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