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Freefile taxes Publication 947 - Introductory Material Table of Contents What's New Practitioners' Hotline IntroductionOrdering forms and publications. Freefile taxes Tax questions. Freefile taxes Useful Items - You may want to see: What's New Registered tax return preparers. Freefile taxes  Registered tax return preparers may prepare and sign as the preparer tax returns and claims for refund and other documents for submission to the IRS. Freefile taxes They may also represent taxpayers before revenue agents, customer service representatives, and similar IRS employees during an examination if they signed the return or claim for refund for the tax year or period under examination. Freefile taxes Future developments. Freefile taxes  The IRS has created a page on IRS. Freefile taxes gov for information about Publication 947 at www. Freefile taxes irs. Freefile taxes gov/pub947. Freefile taxes Information about any future developments (such as legislation enacted after we release it) will be posted on that page. Freefile taxes Practitioners' Hotline The Practitioner Priority Service® is a nationwide, toll-free hotline that provides professional support to practitioners with account-related questions. Freefile taxes The toll-free number for this service is 1-866-860-4259. Freefile taxes Introduction This publication discusses who can represent a taxpayer before the IRS and what forms or documents are used to authorize a person to represent a taxpayer. Freefile taxes Usually, attorneys, certified public accountants (CPAs), enrolled agents, enrolled retirement plan agents, and enrolled actuaries can represent taxpayers before the IRS. Freefile taxes Under special circumstances, other individuals, including registered tax return preparers, unenrolled return preparers, and students can represent taxpayers before the IRS. Freefile taxes For details regarding taxpayer representation, see Who Can Practice Before the IRS, later. Freefile taxes Definitions. Freefile taxes   Many of the terms used in this publication, such as “enrolled agent” and “practitioner” are defined in the Glossary at the back of this publication. Freefile taxes Comments and suggestions. Freefile taxes   We welcome your comments about this publication and your suggestions for future editions. Freefile taxes   You can write to us at the following address: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. Freefile taxes NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Freefile taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Freefile taxes   You can email us at taxforms@irs. Freefile taxes gov . Freefile taxes Please put “Publications Comment” on the subject line. Freefile taxes You can also send us comments from www. Freefile taxes irs. Freefile taxes gov/formspubs/, select “Comment on Tax Forms and Publications” under “Information About. Freefile taxes ” Ordering forms and publications. Freefile taxes   Visit www. Freefile taxes irs. Freefile taxes gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Freefile taxes Internal Revenue Service 1201 N. Freefile taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Freefile taxes   If you have a tax question, check the information available on IRS. Freefile taxes gov or call 1-800-829-1040. Freefile taxes We cannot answer tax questions sent to either of the above addresses. Freefile taxes Useful Items - You may want to see: Publications 1 Your Rights as a Taxpayer 470 Limited Practice Without Enrollment Circular No. Freefile taxes 230 Regulations Governing Practice before the Internal Revenue Service Forms and Instructions 2848 Power of Attorney and Declaration of Representative 8821 Tax Information Authorization Prev  Up  Next   Home   More Online Publications
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How to Forward the Header of a Phishing Email

It is important that the original communication you received is included, as well as Internet headers. The following instructions will assist you in forwarding a phishing communication to us at phishing@irs.gov.

If you receive an email or find a website you think is claiming to be the IRS

  1. Do not reply.
  2. Do not open any attachments. Attachments may contain malicious code that will infect your computer.
  3. Do not click on any links. If you clicked on links in a suspicious email or phishing website and entered confidential information, visit our identity protection page.

    Report email claiming to be from the IRS or bogus IRS websites to us by using the following steps
  4. Forward the email or the URL of the website to the IRS at phishing@irs.gov.
  5. You can forward the email message as received or provide the Internet header of the e-mail. The Internet header has additional information to help us locate the sender.
  6. After you forward the email or header information to us, delete the message you received.

If the methods above do not work, at a minimum, please send the underlying link of the phishing website.

If the suspicious e-mail includes a file attachment, it is safer to simply highlight the message and forward it. Some configurations, especially in Windows environments, may allow the execution of arbitrary code upon opening and viewing a malicious email message.

The IRS can use the information, URLs and links in the suspicious e-mails you forward to trace the hosting website and alert authorities to help shut down the fraudulent sites.

Main phishing resource page:
How to Report and Identify Phishing, E-mail Scams and Bogus IRS Web sites

Page Last Reviewed or Updated: 06-Dec-2013

The Freefile Taxes

Freefile taxes Publication 536 - Main Content Table of Contents NOL Steps How To Figure an NOLNonbusiness deductions (line 6). Freefile taxes Nonbusiness income (line 7). Freefile taxes Nonbusiness capital losses. Freefile taxes Business capital losses. Freefile taxes 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 taxes Step 1. Freefile taxes   Complete your tax return for the year. Freefile taxes 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 taxes Estates and trusts — Form 1041, line 22. Freefile taxes   If the amount on that line is not negative, stop here — you do not have an NOL. Freefile taxes Step 2. Freefile taxes   Determine whether you have an NOL and its amount. Freefile taxes See How To Figure an NOL , later. Freefile taxes If you do not have an NOL, stop here. Freefile taxes Step 3. Freefile taxes   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 taxes See When To Use an NOL , later. Freefile taxes Step 4. Freefile taxes   Deduct the NOL in the carryback or carryforward year. Freefile taxes See How To Claim an NOL Deduction , later. Freefile taxes 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 taxes Step 5. Freefile taxes   Determine the amount of your unused NOL. Freefile taxes See How To Figure an NOL Carryover , later. Freefile taxes Carry over the unused NOL to the next carryback or carryforward year and begin again at Step 4. Freefile taxes Note. Freefile taxes   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 taxes 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 taxes There are rules that limit what you can deduct when figuring an NOL. Freefile taxes In general, the following items are not allowed when figuring an NOL. Freefile taxes Any deduction for personal exemptions. Freefile taxes Capital losses in excess of capital gains. Freefile taxes The section 1202 exclusion of the gain from the sale or exchange of qualified small business stock. Freefile taxes Nonbusiness deductions in excess of nonbusiness income. Freefile taxes The net operating loss deduction. Freefile taxes The domestic production activities deduction. Freefile taxes Form 1045, Schedule A. Freefile taxes   Use Form 1045, Schedule A, to figure an NOL. Freefile taxes The following discussion explains Schedule A and includes an illustrated example. Freefile taxes   First, complete Form 1045, Schedule A, line 1, using amounts from your return. Freefile taxes If line 1 is a negative amount, you may have an NOL. Freefile taxes   Next, complete the rest of Form 1045, Schedule A, to figure your NOL. Freefile taxes Nonbusiness deductions (line 6). Freefile taxes   Enter on line 6 deductions that are not connected to your trade or business or your employment. Freefile taxes 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 taxes   Do not include on line 6 the deduction for personal exemptions for you, your spouse, or your dependents. Freefile taxes   Do not enter business deductions on line 6. Freefile taxes These are deductions that are connected to your trade or business. Freefile taxes They include the following. Freefile taxes State income tax on income attributable to trade or business (including wages, salary, and unemployment compensation). Freefile taxes Moving expenses. Freefile taxes Educator expenses. Freefile taxes The deduction for the deductible part of self-employed health insurance. Freefile taxes Domestic production activities deduction. Freefile taxes Rental losses. Freefile taxes Loss on the sale or exchange of business real estate or depreciable property. Freefile taxes Your share of a business loss from a partnership or an S corporation. Freefile taxes Ordinary loss on the sale or exchange of stock in a small business corporation or a small business investment company. Freefile taxes 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 taxes Loss on the sale of accounts receivable (if you use an accrual method of accounting). Freefile taxes Interest and litigation expenses on state and federal income taxes related to your business. Freefile taxes Unrecovered investment in a pension or annuity claimed on a decedent's final return. Freefile taxes Payment by a federal employee to buy back sick leave used in an earlier year. Freefile taxes Nonbusiness income (line 7). Freefile taxes   Enter on line 7 only income that is not related to your trade or business or your employment. Freefile taxes For example, enter your annuity income, dividends, and interest on investments. Freefile taxes Also, include your share of nonbusiness income from partnerships and S corporations. Freefile taxes   Do not include on line 7 the income you receive from your trade or business or your employment. Freefile taxes 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 taxes Also, do not include rental income or ordinary gain from the sale or other disposition of business real estate or depreciable business property. Freefile taxes Adjustment for section 1202 exclusion (line 17). Freefile taxes   Enter on line 17 any gain you excluded under section 1202 on the sale or exchange of qualified small business stock. Freefile taxes Adjustments for capital losses (lines 19–22). Freefile taxes   The amount deductible for capital losses is limited based on whether the losses are business capital losses or nonbusiness capital losses. Freefile taxes Nonbusiness capital losses. Freefile taxes   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 taxes 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 taxes Business capital losses. Freefile taxes   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 taxes Domestic production activities deduction (line 23). Freefile taxes   You cannot take the domestic production activities deduction when figuring your NOL. Freefile taxes Enter on line 23 any domestic production activities deduction claimed on your return. Freefile taxes NOLs from other years (line 24). Freefile taxes   You cannot deduct any NOL carryovers or carrybacks from other years. Freefile taxes Enter the total amount of your NOL deduction for losses from other years. Freefile taxes Illustrated Form 1045, Schedule A The following example illustrates how to figure an NOL. Freefile taxes It includes filled-in pages 1 and 2 of Form 1040 and Form 1045, Schedule A. Freefile taxes Example. Freefile taxes Glenn Johnson is in the retail record business. Freefile taxes He is single and has the following income and deductions on his Form 1040 for 2013. Freefile taxes See the illustrated Form 1040 , later. Freefile taxes 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 taxes However, to figure whether he has an NOL, certain deductions are not allowed. Freefile taxes He uses Form 1045, Schedule A, to figure his NOL. Freefile taxes See the Illustrated Form 1045, Schedule A , later. Freefile taxes The following items are not allowed on Form 1045, Schedule A. Freefile taxes 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 taxes Please click the link to view the image. Freefile taxes Form 1040, page 1 This image is too large to be displayed in the current screen. Freefile taxes Please click the link to view the image. Freefile taxes Form 1040, page 2 This image is too large to be displayed in the current screen. Freefile taxes Please click the link to view the image. Freefile taxes 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 taxes You can, however, choose not to carry back an NOL and only carry it forward. Freefile taxes See Waiving the Carryback Period , later. Freefile taxes You cannot deduct any part of the NOL remaining after the 20-year carryforward period. Freefile taxes NOL year. Freefile taxes   This is the year in which the NOL occurred. Freefile taxes 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 taxes Eligible loss. Freefile taxes   The carryback period for eligible losses is 3 years. Freefile taxes Only the eligible loss portion of the NOL can be carried back 3 years. Freefile taxes 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 taxes Qualified small business. Freefile taxes   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 taxes If the business did not exist for this entire 3-year period, use the period the business was in existence. Freefile taxes   An eligible loss does not include a farming loss or a qualified disaster loss. Freefile taxes Farming loss. Freefile taxes   The carryback period for a farming loss is 5 years. Freefile taxes Only the farming loss portion of the NOL can be carried back 5 years. Freefile taxes 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 taxes Farming business. Freefile taxes   A farming business is a trade or business involving cultivation of land or the raising or harvesting of any agricultural or horticultural commodity. Freefile taxes 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 taxes The raising, shearing, feeding, caring for, training, and management of animals is also considered a farming business. Freefile taxes   A farming business does not include contract harvesting of an agricultural or horticultural commodity grown or raised by someone else. Freefile taxes 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 taxes Waiving the 5-year carryback. Freefile taxes   You can choose to figure the carryback period for a farming loss without regard to the special 5-year carryback rule. Freefile taxes 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 taxes 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 taxes Attach an election statement to your amended return, and write “Filed pursuant to section 301. Freefile taxes 9100-2” at the top of the statement. Freefile taxes Once made, this choice is irrevocable. Freefile taxes Qualified disaster loss. Freefile taxes   The carryback period for a qualified disaster loss is 5 years. Freefile taxes Only the qualified disaster loss portion of the NOL can be carried back 5 years. Freefile taxes 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 taxes Qualified disaster expenses. Freefile taxes   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 taxes Business-related property is property held for use in a trade or business, property held for the production of income, or inventory property. Freefile taxes Note. Freefile taxes Section 198A allows taxpayers to treat certain capital expenses (qualified disaster expenses) as deductions in the year the expenses were paid or incurred. Freefile taxes Excluded losses. Freefile taxes   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 taxes   A qualified disaster loss also does not include any losses from any gambling or animal racing property. Freefile taxes 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 taxes Specified liability loss. Freefile taxes   The carryback period for a specified liability loss is 10 years. Freefile taxes Only the specified liability loss portion of the NOL can be carried back 10 years. Freefile taxes 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 taxes   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 taxes For details, see section 172(f). Freefile taxes Waiving the 10-year carryback. Freefile taxes   You can choose to figure the carryback period for a specified liability loss without regard to the special 10-year carryback rule. Freefile taxes 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 taxes 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 taxes Attach a statement to your amended return and write “Filed pursuant to section 301. Freefile taxes 9100-2” at the top of the statement. Freefile taxes Once made, this choice is irrevocable. Freefile taxes Waiving the Carryback Period You can choose not to carry back your NOL. Freefile taxes If you make this choice, then you can use your NOL only in the 20-year carryforward period. Freefile taxes (This choice means you also choose not to carry back any alternative tax NOL. Freefile taxes ) To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. Freefile taxes This statement must show that you are choosing to waive the carryback period under section 172(b)(3). Freefile taxes 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 taxes Attach a statement to your amended return, and write “Filed pursuant to section 301. Freefile taxes 9100-2” at the top of the statement. Freefile taxes Once you choose to waive the carryback period, it generally is irrevocable. Freefile taxes 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 taxes If you do not file this statement on time, you cannot waive the carryback period. Freefile taxes 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 taxes If your NOL is not used up, you can carry the rest to the next earliest carryback year, and so on. Freefile taxes 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 taxes Start by carrying it to the first tax year after the NOL year. Freefile taxes If you do not use it up, carry the unused part to the next year. Freefile taxes 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 taxes Example 1. Freefile taxes You started your business as a sole proprietor in 2013 and had a $42,000 NOL for the year. Freefile taxes No part of the NOL qualifies for the 3-year, 5-year, or 10-year carryback. Freefile taxes You begin using your NOL in 2011, the second year before the NOL year, as shown in the following chart. Freefile taxes 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 taxes If you still had an unused 2013 carryforward after the year 2033, you would not be allowed to deduct it. Freefile taxes Example 2. Freefile taxes 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 taxes You begin using the $4,000 in 2010. Freefile taxes As shown in the following chart, $3,000 of this NOL is used in 2010. Freefile taxes The remaining $1,000 is carried to 2011 with the $38,000 NOL that you must begin using in 2011. Freefile taxes 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 taxes 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 taxes If you carry more than one NOL to the same year, your NOL deduction is the total of these carrybacks and carryovers. Freefile taxes NOL resulting in no taxable income. Freefile taxes   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 taxes 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 taxes Deducting a Carryback If you carry back your NOL, you can use either Form 1045 or Form 1040X. Freefile taxes You can get your refund faster by using Form 1045, but you have a shorter time to file it. Freefile taxes You can use Form 1045 to apply an NOL to all carryback years. Freefile taxes If you use Form 1040X, you must use a separate Form 1040X for each carryback year to which you apply the NOL. Freefile taxes 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 taxes 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 taxes Include the NOL deduction with other deductions not subject to the 2% limit (line 15a). Freefile taxes Also, see the special procedures for filing an amended return due to an NOL carryback, explained under Form 1040X , later. Freefile taxes Form 1045. Freefile taxes   You can apply for a quick refund by filing Form 1045. Freefile taxes This form results in a tentative adjustment of tax in the carryback year. Freefile taxes See the Illustrated Form 1045 . Freefile taxes at the end of this discussion. Freefile taxes   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 taxes   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 taxes 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 taxes 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 taxes Form 1040X. Freefile taxes   If you do not file Form 1045, you can file Form 1040X to get a refund of tax because of an NOL carryback. Freefile taxes File Form 1040X within 3 years after the due date, including extensions, for filing the return for the NOL year. Freefile taxes 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 taxes   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 taxes Refiguring your tax. Freefile taxes   To refigure your total tax liability for a carryback year, first refigure your adjusted gross income for that year. Freefile taxes (On Form 1045, use lines 10 and 11 and the “After carryback” column for the applicable carryback year. Freefile taxes ) 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 taxes Refigure the following items. Freefile taxes The special allowance for passive activity losses from rental real estate activities. Freefile taxes Taxable social security and tier 1 railroad retirement benefits. Freefile taxes IRA deductions. Freefile taxes Excludable savings bond interest. Freefile taxes Excludable employer-provided adoption benefits. Freefile taxes The student loan interest deduction. Freefile taxes The tuition and fees deduction. Freefile taxes   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 taxes (Enter your NOL deduction on Form 1045, line 10. Freefile taxes 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 taxes )   Next, refigure your taxable income. Freefile taxes (On Form 1045, use lines 12 through 15 and the “After carryback” column. Freefile taxes ) 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 taxes Refigure the following items. Freefile taxes The itemized deduction for medical expenses. Freefile taxes The itemized deduction for qualified mortgage insurance premiums. Freefile taxes The itemized deduction for casualty losses. Freefile taxes Miscellaneous itemized deductions subject to the 2% limit. Freefile taxes The overall limit on itemized deductions (do not apply to carryback years beginning after December 31, 2009). Freefile taxes The phaseout of the deduction for exemptions (do not apply to carryback years beginning after December 31, 2009). Freefile taxes Qualified motor vehicle tax (do not apply to carryback years beginning after December 31, 2009). Freefile taxes    Do not refigure the itemized deduction for charitable contributions. Freefile taxes   Finally, use your refigured taxable income (Form 1045, line 15, using the “After carryback” column) to refigure your total tax liability. Freefile taxes 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 taxes (On Form 1045, use lines 16 through 25, and the “After carryback” column. Freefile taxes ) 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 taxes 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 taxes   While it is necessary to refigure your income tax, alternative minimum tax, and credits, do not refigure your self-employment tax. Freefile taxes 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 taxes Estates and trusts include an NOL deduction on Form 1041 with other deductions not subject to the 2% limit (line 15a for 2013). Freefile taxes You must attach a statement that shows all the important facts about the NOL. Freefile taxes Your statement should include a computation showing how you figured the NOL deduction. Freefile taxes If you deduct more than one NOL in the same year, your statement must cover each of them. Freefile taxes 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 taxes If you file a joint return, the NOL deduction is limited to the income of that spouse. Freefile taxes 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 taxes After you deduct the NOL in the carryback year, the joint rates apply to the resulting taxable income. Freefile taxes Refund limit. Freefile taxes   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 taxes 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 taxes The refund cannot be more than the joint overpayment. Freefile taxes Attach a statement showing how you figured your refund. Freefile taxes Figuring your share of a joint tax liability. Freefile taxes   There are five steps for figuring your share of the refigured joint tax liability. Freefile taxes Figure your total tax as though you had filed as married filing separately. Freefile taxes Figure your spouse's total tax as though your spouse had also filed as married filing separately. Freefile taxes Add the amounts in (1) and (2). Freefile taxes Divide the amount in (1) by the amount in (3). Freefile taxes Multiply the refigured tax on your joint return by the amount figured in (4). Freefile taxes This is your share of the joint tax liability. Freefile taxes Figuring your contribution toward tax paid. Freefile taxes   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 taxes If the original return for the carryback year resulted in an overpayment, reduce your contribution by your share of the tax refund. Freefile taxes Figure your share of a joint payment or refund by the same method used in figuring your share of the joint tax liability. Freefile taxes 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 taxes 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 taxes However, treat the NOL deduction as a joint NOL. Freefile taxes 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 taxes 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 taxes Separate to joint return. Freefile taxes   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 taxes Joint to separate returns. Freefile taxes   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 taxes Joint return in NOL year. Freefile taxes   Figure each spouse's share of the joint NOL through the following steps. Freefile taxes Figure each spouse's NOL as if he or she filed a separate return. Freefile taxes See How To Figure an NOL , earlier. Freefile taxes If only one spouse has an NOL, stop here. Freefile taxes All of the joint NOL is that spouse's NOL. Freefile taxes 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 taxes The result is spouse A's share of the joint NOL. Freefile taxes The rest of the joint NOL is spouse B's share. Freefile taxes Example 1. Freefile taxes Mark and Nancy are married and file a joint return for 2013. Freefile taxes They have an NOL of $5,000. Freefile taxes They carry the NOL back to 2011, a year in which Mark and Nancy filed separate returns. Freefile taxes Figured separately, Nancy's 2013 deductions were more than her income, and Mark's income was more than his deductions. Freefile taxes Mark does not have any NOL to carry back. Freefile taxes Nancy can carry back the entire $5,000 NOL to her 2011 separate return. Freefile taxes Example 2. Freefile taxes 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 taxes Figured separately, his NOL is $1,800 and her NOL is $3,000. Freefile taxes 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 taxes The loss is allowed in figuring their joint NOL because it was offset by Nancy's capital gains. Freefile taxes 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 taxes Joint return in previous carryback or carryforward year. Freefile taxes   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 taxes 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 taxes Figure each spouse's modified taxable income as if he or she filed a separate return. Freefile taxes See Modified taxable income under How To Figure an NOL Carryover , later. Freefile taxes 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 taxes This is spouse A's share of the joint modified taxable income. Freefile taxes Subtract the amount figured in (2) from the joint modified taxable income. Freefile taxes This is spouse B's share of the joint modified taxable income. Freefile taxes Reduce the amount figured in (3), but not below zero, by spouse B's NOL deduction. Freefile taxes Add the amounts figured in (2) and (4). Freefile taxes Subtract the amount figured in (5) from spouse A's NOL deduction. Freefile taxes This is spouse A's share of the joint carryover. Freefile taxes The rest of the joint carryover is spouse B's share. Freefile taxes Example. Freefile taxes Sam and Wanda filed a joint return for 2011 and separate returns for 2012 and 2013. Freefile taxes In 2013, Sam had an NOL of $18,000 and Wanda had an NOL of $2,000. Freefile taxes They choose to carry back both NOLs 2 years to their 2011 joint return and claim a $20,000 NOL deduction. Freefile taxes 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 taxes Sam and Wanda each figure their separate MTI for 2011 as if they had filed separate returns. Freefile taxes Then they figure their shares of the $5,000 carryover as follows. Freefile taxes Step 1. Freefile taxes   Sam's separate MTI $9,000 Wanda's separate MTI + 3,000 Total MTI $12,000 Step 2. Freefile taxes   Joint MTI $15,000 Sam's MTI ÷ total MTI ($9,000 ÷ $12,000) × . Freefile taxes 75 Sam's share of joint MTI $11,250 Step 3. Freefile taxes   Joint MTI $15,000 Sam's share of joint MTI − 11,250 Wanda's share of joint MTI $3,750 Step 4. Freefile taxes   Wanda's share of joint MTI $3,750 Wanda's NOL deduction − 2,000 Wanda's remaining share $1,750 Step 5. Freefile taxes   Sam's share of joint MTI $11,250 Wanda's remaining share + 1,750 Joint MTI to be offset $13,000 Step 6. Freefile taxes   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 taxes She has no carryover to 2012. Freefile taxes 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 taxes His carryover to 2012 is $5,000. Freefile taxes Illustrated Form 1045 The following example illustrates how to use Form 1045 to claim an NOL deduction in a carryback year. Freefile taxes It includes a filled-in page 1 of Form 1045. Freefile taxes Example. Freefile taxes Martha Sanders is a self-employed contractor. Freefile taxes Martha's 2013 deductions are more than her 2013 income because of a business loss. Freefile taxes She uses Form 1045 to carry back her NOL 2 years and claim an NOL deduction in 2011. Freefile taxes Her filing status in both years was single. Freefile taxes See the filled-in Form 1045 later. Freefile taxes Martha figures her 2013 NOL on Form 1045, Schedule A (not shown). Freefile taxes (For an example using Form 1045, Schedule A, see Illustrated Form 1045, Schedule A under How To Figure an NOL , earlier. Freefile taxes ) She enters the $10,000 NOL from Form 1045, Schedule A, line 25, on Form 1045, line 1a. Freefile taxes 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 taxes 2011 Adjusted gross income $50,000 Itemized deductions:     Medical expenses [$6,000 − ($50,000 × 7. Freefile taxes 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 taxes 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 taxes On line 10, Martha enters her $10,000 NOL deduction. Freefile taxes Her new adjusted gross income on line 11 is $40,000 ($50,000 − $10,000). Freefile taxes To complete line 12, she must refigure her medical expense deduction using her new adjusted gross income. Freefile taxes Her refigured medical expense deduction is $3,000 [$6,000 − ($40,000 × 7. Freefile taxes 5%)]. Freefile taxes This increases her total itemized deductions to $14,000 [$13,250 + ($3,000 − $2,250)]. Freefile taxes 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 taxes She enters the new amount, $2,924, on line 16, and her new total tax liability, $9,044, on line 25. Freefile taxes 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 taxes The decrease in tax because of her NOL deduction (line 27) is $1,612. Freefile taxes Martha files Form 1045 after filing her 2013 return, but no later than December 31, 2014. Freefile taxes 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 taxes This image is too large to be displayed in the current screen. Freefile taxes Please click the link to view the image. Freefile taxes 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 taxes 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 taxes Your carryover is the excess of your NOL deduction over your modified taxable income for the carryback or carryforward year. Freefile taxes 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 taxes Modified taxable income. Freefile taxes   Your modified taxable income is your taxable income figured with the following changes. Freefile taxes You cannot claim an NOL deduction for the NOL carryover you are figuring or for any later NOL. Freefile taxes You cannot claim a deduction for capital losses in excess of your capital gains. Freefile taxes Also, you must increase your taxable income by the amount of any section 1202 exclusion. Freefile taxes You cannot claim the domestic production activities deduction. Freefile taxes You cannot claim a deduction for your exemptions for yourself, your spouse, or dependents. Freefile taxes 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 taxes This includes income and deduction items used to figure adjusted gross income (for example, IRA deductions), as well as certain itemized deductions. Freefile taxes 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 taxes   Your taxable income as modified cannot be less than zero. Freefile taxes Form 1045, Schedule B. Freefile taxes   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 taxes Do not use Form 1045, Schedule B, for a carryforward year. Freefile taxes 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 taxes Illustrated Form 1045, Schedule B The following example illustrates how to figure an NOL carryover from a carryback year. Freefile taxes It includes a filled-in Form 1045, Schedule B. Freefile taxes Example. Freefile taxes Ida Brown runs a small clothing shop. Freefile taxes In 2013, she has an NOL of $36,000 that she carries back to 2011. Freefile taxes She has no other carrybacks or carryforwards to 2011. Freefile taxes 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 taxes She is single and claimed only one personal exemption of $3,700. Freefile taxes During that year, she gave $1,450 in charitable contributions. Freefile taxes Her medical expenses were $3,000. Freefile taxes She also deducted $1,650 in taxes and $3,125 in home mortgage interest. Freefile taxes Her deduction for charitable contributions was not limited because her contributions, $1,450, were less than 50% of her adjusted gross income. Freefile taxes The deduction for medical expenses was limited to expenses over 7. Freefile taxes 5% of adjusted gross income (. Freefile taxes 075 × $35,000 = $2,625; $3,000 − $2,625 = $375). Freefile taxes The deductions for taxes and home mortgage interest were not subject to any limits. Freefile taxes 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 taxes She had no other deductions in 2011 (except the NOL deduction). Freefile taxes Her taxable income (figured without the NOL deduction) for the year was $24,700. Freefile taxes 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 taxes She did not itemize her deductions in 2012. Freefile taxes She deducted the standard deduction of $5,950 and the personal exemption deduction of $3,800. Freefile taxes She had no other deductions in 2012 (other than the NOL deduction). Freefile taxes Her taxable income, therefore, was ($425). Freefile taxes Ida's $36,000 carryback will result in her having 2011 taxable income of zero. Freefile taxes 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 taxes She completes the column for the first preceding tax year ended 12/31/12. Freefile taxes See the illustrated Form 1045, Schedule B , shown later. Freefile taxes Column 1, line 1. Freefile taxes Ida enters $36,000, her 2013 net operating loss, on line 1. Freefile taxes Column 1, line 2. Freefile taxes She enters $24,700, her 2011 taxable income (figured without the NOL deduction), on line 2. Freefile taxes Column 1, line 3. Freefile taxes Ida enters her net capital loss deduction of $1,000 on line 3. Freefile taxes Column 1, lines 4 and 5. Freefile taxes Ida had no section 1202 exclusion or domestic production activities deduction in 2011. Freefile taxes She enters zero on lines 4 and 5. Freefile taxes Column 1, line 6. Freefile taxes 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 taxes Ida enters zero on line 6. Freefile taxes Column 1, line 7. Freefile taxes 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 taxes On line 7, she enters the total adjustment from line 38. Freefile taxes Column 1, line 8. Freefile taxes Ida enters the deduction for her personal exemption of $3,700 for 2011. Freefile taxes Column 1, line 9. Freefile taxes After combining lines 2 through 8, Ida's modified taxable income is $29,475. Freefile taxes Column 1, line 10. Freefile taxes Ida figures her carryover to 2012 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). Freefile taxes She enters the $6,525 carryover on line 10. Freefile taxes 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 taxes (For an illustrated example of page 1 of Form 1045, see Illustrated Form 1045 under How To Claim an NOL Deduction , earlier. Freefile taxes ) Next, Ida completes column 2 for the first preceding tax year ended 12/31/12. Freefile taxes Column 1, line 11. Freefile taxes Ida's adjusted gross income for 2011 was $35,000. Freefile taxes Column 1, line 12. Freefile taxes She adds lines 3 through 6 and enters $1,000 on line 12. Freefile taxes (This is her net capital loss deduction added back, which modifies her adjusted gross income. Freefile taxes ) Column 1, line 13. Freefile taxes Her modified adjusted gross income for 2011 is now $36,000. Freefile taxes Column 1, line 14. Freefile taxes On her 2011 tax return, she deducted $375 as medical expenses. Freefile taxes Column 1, line 15. Freefile taxes Her actual medical expenses were $3,000. Freefile taxes Column 1, line 16. Freefile taxes She multiplies her modified adjusted gross income, $36,000, by . Freefile taxes 075. Freefile taxes She enters $2,700 on line 16. Freefile taxes Column 1, line 17. Freefile taxes She substracts $2,700 from her actual medical expenses, $3,000. Freefile taxes She enters $300 on line 17. Freefile taxes This is her modified medical deduction. Freefile taxes Column 1, line 18. Freefile taxes The difference between her medical deduction and her modified medical deduction is $75. Freefile taxes She enters this on line 18. Freefile taxes Column 1, lines 19 through 21. Freefile taxes Ida had no deduction for qualified mortgage insurance premiums in 2011. Freefile taxes She skips lines 19 and 20 and enters zero on line 21. Freefile taxes Column 1, line 22. Freefile taxes She enters her modified adjusted gross income of $36,000 on line 22. Freefile taxes Column 1, line 23. Freefile taxes She had no other carrybacks to 2011 and enters zero on line 23. Freefile taxes Column 1, line 24. Freefile taxes Her modified adjusted gross income remains $36,000. Freefile taxes Column 1, line 25. Freefile taxes Her actual contributions for 2011 were $1,450, which she enters on line 25. Freefile taxes Column 1, line 26. Freefile taxes She now refigures her charitable contributions based on her modified adjusted gross income. Freefile taxes Her contributions are well below the 50% limit, so she enters $1,450 on line 26. Freefile taxes Column 1, line 27. Freefile taxes The difference is zero. Freefile taxes Column 1, lines 28 through 37. Freefile taxes Ida had no casualty losses or deductions for miscellaneous items in 2011. Freefile taxes She skips lines 28 through 31 and lines 33 through 36. Freefile taxes Ida enters zero on lines 32 and 37. Freefile taxes Column 1, line 38. Freefile taxes She combines lines 18, 21, 27, 32, and 37 and enters $75 on line 38. Freefile taxes She carries this figure to line 7. Freefile taxes Column 2, line 1. Freefile taxes Ida enters $6,525, the carryback of her 2013 NOL to 2012, from column 1, line 10, on line 1. Freefile taxes Column 2, line 2. Freefile taxes She enters ($425), her 2012 taxable income, on line 2. Freefile taxes Column 2, line 3. Freefile taxes Ida enters her net capital loss deduction of $3,000 on line 3. Freefile taxes Column 2, lines 4 and 5. Freefile taxes Ida had no section 1202 exclusion or domestic production activities deduction in 2012. Freefile taxes She enters zero on lines 4 and 5. Freefile taxes Column 2, line 6. Freefile taxes 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 taxes Ida enters zero on line 6. Freefile taxes Column 2, line 7. Freefile taxes Because Ida did not itemize deductions on her 2012 tax return, she enters zero on line 7. Freefile taxes Column 2, line 8. Freefile taxes Ida enters the deduction for her personal exemption of $3,800 for 2012. Freefile taxes Column 2, line 9. Freefile taxes After combining lines 2 through 8, Ida's modified taxable income is $6,375. Freefile taxes Column 2, line 10. Freefile taxes Ida figures her carryforward to 2014 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). Freefile taxes She enters the $150 carryover on line 10. Freefile taxes This image is too large to be displayed in the current screen. Freefile taxes Please click the link to view the image. Freefile taxes Form 1045, page 3 This image is too large to be displayed in the current screen. Freefile taxes Please click the link to view the image. Freefile taxes 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 taxes It will help you figure your NOL to carry to 2014. Freefile taxes Keep the worksheet for your records. Freefile taxes Worksheet Instructions At the top of the worksheet, enter the NOL year for which you are figuring the carryover. Freefile taxes More than one NOL. Freefile taxes   If your 2013 NOL deduction includes amounts for more than one loss year, complete this worksheet only for one loss year. Freefile taxes To determine which year, start with your earliest NOL and subtract each NOL separately from your taxable income figured without the NOL deduction. Freefile taxes Complete this worksheet for the earliest NOL that results in your having taxable income below zero. Freefile taxes Your NOL carryover to 2014 is the total of the amount on line 10 of the worksheet and all later NOL amounts. Freefile taxes Example. Freefile taxes Your taxable income for 2013 is $5,000 without your $9,000 NOL deduction. Freefile taxes Your NOL deduction includes a $2,000 carryover from 2011 and a $7,000 carryover from 2012. Freefile taxes Subtract your 2011 NOL of $2,000 from $5,000. Freefile taxes This gives you taxable income of $3,000. Freefile taxes Your 2011 NOL is now completely used up. Freefile taxes Subtract your $7,000 2012 NOL from $3,000. Freefile taxes This gives you taxable income of ($4,000). Freefile taxes You now complete the worksheet for your 2012 NOL. Freefile taxes Your NOL carryover to 2014 is the unused part of your 2012 NOL from line 10 of the worksheet. Freefile taxes Line 2. Freefile taxes   Treat your NOL deduction for the NOL year entered at the top of the worksheet and later years as a positive amount. Freefile taxes Add it to your negative taxable income (figured without the NOL deduction). Freefile taxes Enter the result on line 2. Freefile taxes Line 6. Freefile taxes   You must refigure the following income and deductions based on adjusted gross income. Freefile taxes The special allowance for passive activity losses from rental real estate activities. Freefile taxes Taxable social security and tier 1 railroad retirement benefits. Freefile taxes IRA deductions. Freefile taxes Excludable savings bond interest. Freefile taxes Excludable employer-provided adoption benefits. Freefile taxes The student loan interest deduction. Freefile taxes The tuition and fees deduction. Freefile taxes   If none of these items apply to you, enter zero on line 6. Freefile taxes 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 taxes Using this increased adjusted gross income, refigure the items that apply, in the order listed above. Freefile taxes Your adjustment for each item is the difference between the refigured amount and the amount included on your return. Freefile taxes Combine the adjustments for previous items with your adjusted gross income before refiguring the next item. Freefile taxes Keep a record of your computations. Freefile taxes   Enter your total adjustments for the above items on line 6. Freefile taxes Line 7. Freefile taxes   Enter zero if you claimed the standard deduction or the amounts on lines 3 through 5 are zero. Freefile taxes Otherwise, use lines 11 through 33 of the worksheet to figure the amount to enter on this line. Freefile taxes Complete only those sections that apply to you. Freefile taxes Estates and trusts. Freefile taxes   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 taxes Otherwise, refigure these deductions by substituting modified adjusted gross income (see below ) for adjusted gross income. Freefile taxes Subtract the recomputed deductions from those claimed on the return. Freefile taxes Enter the result on line 7. Freefile taxes Modified adjusted gross income. Freefile taxes   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 taxes The adjusted gross income on the return. Freefile taxes The amounts from lines 3 through 5 of the worksheet. Freefile taxes The exemption amount from Form 1041, line 20. Freefile taxes The NOL deduction for the NOL year entered at the top of the worksheet and for later years. Freefile taxes   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 taxes The adjusted gross income amount you used to figure the deduction claimed on the return. Freefile taxes The amounts from lines 3 through 5 of the worksheet. Freefile taxes The NOL deduction for the NOL year entered at the top of the worksheet and for later years. Freefile taxes Line 11. Freefile taxes   Treat your NOL deduction for the NOL year entered at the top of the worksheet and for later years as a positive amount. Freefile taxes Add it to your adjusted gross income. Freefile taxes Enter the result on line 11. Freefile taxes Line 20. Freefile taxes   Is your modified adjusted gross income from line 13 of this worksheet more than $100,000 ($50,000 if married filing separately)?   □ Yes. Freefile taxes Your deduction is limited. Freefile taxes Refigure your deduction using the Mortgage Insurance Premiums Deduction Worksheet in the 2013 Instructions for Form 1045. Freefile taxes On line 2 of the Mortgage Insurance Premiums Deduction Worksheet, enter the amount from line 13 of this worksheet. Freefile taxes   □ No. Freefile taxes Your deduction is not limited. Freefile taxes Enter the amount from line 19 on line 20 and enter -0- on line 21. Freefile taxes Line 23. Freefile taxes   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 taxes 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 taxes Use the reduced contributions carryover to figure the amount to enter on line 23. Freefile taxes Please click here for the text description of the image. Freefile taxes 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 taxes Free help with your tax return. Freefile taxes   You can get free help preparing your return nationwide from IRS-certified volunteers. Freefile taxes The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Freefile taxes The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Freefile taxes 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 taxes In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Freefile taxes To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Freefile taxes gov, download the IRS2Go app, or call 1-800-906-9887. Freefile taxes   As part of the TCE program, AARP offers the Tax-Aide counseling program. Freefile taxes To find the nearest AARP Tax-Aide site, visit AARP's website at www. Freefile taxes aarp. Freefile taxes org/money/taxaide or call 1-888-227-7669. Freefile taxes For more information on these programs, go to IRS. Freefile taxes gov and enter “VITA” in the search box. Freefile taxes Internet. Freefile taxes    IRS. Freefile taxes gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Freefile taxes Download the free IRS2Go app from the iTunes app store or from Google Play. Freefile taxes 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 taxes Check the status of your 2013 refund with the Where's My Refund? application on IRS. Freefile taxes gov or download the IRS2Go app and select the Refund Status option. Freefile taxes The IRS issues more than 9 out of 10 refunds in less than 21 days. Freefile taxes 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 taxes You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Freefile taxes The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Freefile taxes Use the Interactive Tax Assistant (ITA) to research your tax questions. Freefile taxes No need to wait on the phone or stand in line. Freefile taxes 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 taxes When you reach the response screen, you can print the entire interview and the final response for your records. Freefile taxes New subject areas are added on a regular basis. Freefile taxes  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Freefile taxes gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Freefile taxes You can use the IRS Tax Map to search publications and instructions by topic or keyword. Freefile taxes The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Freefile taxes 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 taxes 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 taxes You can also ask the IRS to mail a return or an account transcript to you. Freefile taxes Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Freefile taxes gov or by calling 1-800-908-9946. Freefile taxes Tax return and tax account transcripts are generally available for the current year and the past three years. Freefile taxes Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Freefile taxes Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Freefile taxes 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 taxes Check the status of your amended return using Where's My Amended Return? Go to IRS. Freefile taxes gov and enter Where's My Amended Return? in the search box. Freefile taxes You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Freefile taxes It can take up to 3 weeks from the date you mailed it to show up in our system. Freefile taxes Make a payment using one of several safe and convenient electronic payment options available on IRS. Freefile taxes gov. Freefile taxes Select the Payment tab on the front page of IRS. Freefile taxes gov for more information. Freefile taxes Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Freefile taxes Figure your income tax withholding with the IRS Withholding Calculator on IRS. Freefile taxes gov. Freefile taxes 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 taxes Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Freefile taxes gov. Freefile taxes Request an Electronic Filing PIN by going to IRS. Freefile taxes gov and entering Electronic Filing PIN in the search box. Freefile taxes Download forms, instructions and publications, including accessible versions for people with disabilities. Freefile taxes Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Freefile taxes gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Freefile taxes An employee can answer questions about your tax account or help you set up a payment plan. Freefile taxes Before you visit, check the Office Locator on IRS. Freefile taxes 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 taxes If you have a special need, such as a disability, you can request an appointment. Freefile taxes Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Freefile taxes Apply for an Employer Identification Number (EIN). Freefile taxes Go to IRS. Freefile taxes gov and enter Apply for an EIN in the search box. Freefile taxes Read the Internal Revenue Code, regulations, or other official guidance. Freefile taxes Read Internal Revenue Bulletins. Freefile taxes Sign up to receive local and national tax news and more by email. Freefile taxes Just click on “subscriptions” above the search box on IRS. Freefile taxes gov and choose from a variety of options. Freefile taxes Phone. Freefile taxes    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Freefile taxes Download the free IRS2Go app from the iTunes app store or from Google Play. Freefile taxes Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Freefile taxes gov, or download the IRS2Go app. Freefile taxes 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 taxes The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Freefile taxes Most VITA and TCE sites offer free electronic filing. Freefile taxes Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Freefile taxes Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Freefile taxes 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 taxes 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 taxes The IRS issues more than 9 out of 10 refunds in less than 21 days. Freefile taxes 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 taxes 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 taxes The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Freefile taxes Note, the above information is for our automated hotline. Freefile taxes 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 taxes Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Freefile taxes You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Freefile taxes It can take up to 3 weeks from the date you mailed it to show up in our system. Freefile taxes 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 taxes You should receive your order within 10 business days. Freefile taxes Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Freefile taxes 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 taxes Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Freefile taxes The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Freefile taxes These individuals can also contact the IRS through relay services such as the Federal Relay Service. Freefile taxes Walk-in. Freefile taxes   You can find a selection of forms, publications and services — in person. Freefile taxes Products. Freefile taxes You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Freefile taxes Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Freefile taxes Services. Freefile taxes You can walk in to your local TAC for face-to-face tax help. Freefile taxes An employee can answer questions about your tax account or help you set up a payment plan. Freefile taxes Before visiting, use the Office Locator tool on IRS. Freefile taxes 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 taxes Mail. Freefile taxes   You can send your order for forms, instructions, and publications to the address below. Freefile taxes You should receive a response within 10 business days after your request is received. Freefile taxes Internal Revenue Service 1201 N. Freefile taxes Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. Freefile taxes The Taxpayer Advocate Service (TAS) is your voice at the IRS. Freefile taxes Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Freefile taxes   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Freefile taxes 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 taxes You face (or your business is facing) an immediate threat of adverse action. Freefile taxes You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Freefile taxes   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 taxes Here's why we can help: TAS is an independent organization within the IRS. Freefile taxes Our advocates know how to work with the IRS. Freefile taxes Our services are free and tailored to meet your needs. Freefile taxes We have offices in every state, the District of Columbia, and Puerto Rico. Freefile taxes   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 taxes   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Freefile taxes If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. Freefile taxes Low Income Taxpayer Clinics Low Income