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mimimiller33
New Member

May I use a NOL Carryback from 2016 to reduce the tax liability owed in 2015?

 
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MargaretL
Employee Tax Expert

May I use a NOL Carryback from 2016 to reduce the tax liability owed in 2015?

Yes, you may, although you have to also include it on your 2014 tax return. Per IRS, you can carryback your NOL to the 2 tax years before NOL year. You can't just pick which year, you must first apply NOL to 2014, then - if there's anything else left- you would apply it to your 2015 tax return.  You would have to amend your 2014 and 2015 tax return to do so; when amending enter your respective NOL amounts as negative amount on line 21 Form 1040 for each year.

Otherwise, you can carryforward the NOL to future tax years.


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1 Reply
MargaretL
Employee Tax Expert

May I use a NOL Carryback from 2016 to reduce the tax liability owed in 2015?

Yes, you may, although you have to also include it on your 2014 tax return. Per IRS, you can carryback your NOL to the 2 tax years before NOL year. You can't just pick which year, you must first apply NOL to 2014, then - if there's anything else left- you would apply it to your 2015 tax return.  You would have to amend your 2014 and 2015 tax return to do so; when amending enter your respective NOL amounts as negative amount on line 21 Form 1040 for each year.

Otherwise, you can carryforward the NOL to future tax years.


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