NOL-F85A: Application of Net Operating Loss Carryback or Carryforward – Fiduciary Return (Form 41) (2025)
Alabama · Alabama DOR · Used for tax years 2025
Alabama Form NOL-F85A applies an estate's or trust's net operating loss to a carryback or carryforward year for fiduciary Form 41. It calculates the unused loss, the loss applied to that year, and the resulting Alabama taxable income and tax due.
Who files this form
Form NOL-F85A is for an estate or trust that files Alabama Form 41 and is applying a net operating loss to the next taxable year to which the loss is being carried.
Before completing this form, you must complete Form NOL-F85 to determine whether you have an allowable net operating loss and how much may be carried back or forward. Form NOL-F85A does not apply if the Alabama taxable income entered on line 3 is zero or negative.
What you'll need
- Completed Form NOL-F85: This determines the allowable loss and the amount available to carry back or forward. Line 2 of Form NOL-F85A uses the loss from Form NOL-F85, Part II, line 17, or the unused loss from line 4 of a previous Form NOL-F85A.
- Alabama Form 41: You will need the estate or trust name as shown on the return and the taxable income from page 1, line 5 or 6.
- Schedule ESBT, if applicable: Use line 20 for the taxable income entries.
- Identifying and loss-year information: Have the federal employer identification number, the year ending date, the beginning and ending dates of the loss year, and the carryback election information from Form NOL-F85.
Common mistakes
- Completing NOL-F85A before NOL-F85: The form says you must first complete NOL-F85 to establish the allowable loss.
- Using NOL-F85A when line 3 is zero or negative: The form says it does not apply in that situation.
- Overlooking the ESBT directions: For Schedule ESBT NOL, use Schedule ESBT, line 20, for lines 3 and 5. In the tax computation section, complete only lines 10 and 11.
- Not transferring the tax result: Line 11 must be carried to Alabama Form 41, page 1, line 5a or 6a. For Schedule ESBT NOL, use Schedule ESBT, line 21.
Questions people ask
Where do I get the loss amount for line 2?
Use Form NOL-F85, Part II, line 17, or the unused net operating loss shown on line 4 of a previous Form NOL-F85A.
What happens if some of the loss is unused?
If line 2 exceeds line 3, subtract line 3 from line 2 and enter the difference on line 4. If line 4 is greater than zero, you may carry that amount forward to the next applicable year using Form NOL-F85A.
How do I calculate the loss applied to this year?
On line 6, subtract line 4 from line 2. If line 4 is zero, enter the amount from line 2. Then subtract line 6 from line 5 to calculate the Alabama taxable income after the loss on line 7.
Where do I report the tax calculated on this form?
Transfer the total tax from line 11 to Alabama Form 41, page 1, line 5a or 6a. For Schedule ESBT NOL, transfer it to Schedule ESBT, line 21.