State tax filing

After 2020, an Indiana net operating loss equals the sum of:

• the federal NOL under IRC Sec. 172, as adjusted under Indiana law, and for individuals, reduced by any deductions allowed in determining the federal NOL for the tax year, but not allowed in determining federal adjusted gross income;

• the excess business loss deduction; and

• for tax years after beginning after December 31, 2020, a loss for a tax year disallowed under IRC Sec. 461(l).

Before 2021, an Indiana net operating loss is allowed for resident taxpayers equal to the taxpayer's federal NOL deduction:

• under IRC Sec. 172; plus

• for tax years beginning in 2018, a loss for a tax year disallowed under IRC Sec. 461(l).

The loss is adjusted for the addition modifications and subtraction modifications required under Indiana law ( IC 6-3-2-2.5(c) ) The modifications to be applied are those modifications required under IC 6-3-1-3.5 , for the same taxable year in which each NOL was incurred, and an Indiana NOL includes a loss incurred when the modifications required under IC 6-3-1-3.5 , exceed the taxpayer's federal adjusted gross income for the taxable year in which the Indiana NOL is determined. Except that the modifications do not include the modifications required under IC 6-3-1-3.5(a)(3), IC 6-3-1-3.5(a)(4), IC 6-3-1-3.5(a)(5), IC 6-3-1-3.5(a)(24), and IC 6-3-1-3.5(e)(10). ( IC 6-3-2-2.5(d) ) The amount of a deduction in a taxable year may not exceed the taxpayer's unused Indiana NOLs carried forward (or, prior to 2012, carried back) to that year.