N-109: Application for Tentative Refund from Carryback of Net Operating Loss (Other Than Corporation) (Revision 2024)

Who files this form

Form N-109 is an optional application for a quick, tentative refund from carrying back a farming net operating loss (NOL). It may be used by individuals, estates, trusts, or fiduciaries choosing to carry a farming loss back.

Nonresidents and part-year residents who file Form N-15 cannot file Form N-109. They must use an amended Form N-15 to carry back a farming NOL.

When it's due

For the tax year in which the NOL arose, file Form N-109:

• On or after the date you file that year's income tax return.
• Within 12 months after the end of that tax year.

The text gives this filing window, not specific calendar due dates for the 2024, 2025, or 2026 loss years.

What you'll need

Prepare the following:

• A copy of your original federal income tax return for the loss year. Attach it to Form N-109.
• A computation of the NOL deduction entered on line 7.
• A detailed computation of the new tax liability on line 13, columns (b) and (d).
• Supporting documentation for nonbusiness deductions on Schedule A, line 8a.
• A computation showing how you figured the carryback if your filing status changed between joint and separate returns during the years involved.

Use the original or amended returns for the affected carryback years, including any examination adjustments, to enter the before-carryback amounts.

How to file

1. Use Schedule A to figure your NOL. For page 1, line 2, enter the smaller of the farming-only NOL or the NOL on Schedule A, line 10.
2. Complete the before-and-after tax calculations for the affected carryback years and attach the required computations and federal return copy.
3. Sign and date the application. If it is a joint return, both spouses must sign.
4. File Form N-109 separately from your income tax return.

Send it to:

Hawaii Department of Taxation

P.O. Box 3559

Honolulu, Hawaii 96811-3559

Common mistakes

• Attaching Form N-109 to your income tax return. The form says to file it separately to expedite processing.
• Using Form N-109 as a Form N-15 filer. Nonresidents and part-year residents cannot file this application.
• Carrying back a nonfarming loss. For losses arising in tax years ending after December 31, 2017, only farming NOLs may be carried back two years.
• Leaving out the federal return copy. The instructions warn that this may delay processing and your refund.
• Treating a zero or positive Schedule A result as a loss. If line 3 is zero or more, stop. If line 10 is zero or more, you do not have an NOL.

Questions people ask

Can I carry my farming loss forward instead of back?

Yes. You may elect to waive the carryback period by attaching the required statement to your original loss-year return filed by its due date, including extensions. Once made, the election cannot be changed.

Can a Form N-15 filer use Schedule A?

Yes, even though they cannot file Form N-109. Form N-15 filers must figure both their Total NOL using Column A amounts and their Hawaii NOL using Column B amounts. They must file an amended Form N-15 to carry back a farming NOL.

Is the carryback deduction limited?

Yes. The instructions for line 7 limit the NOL deduction to 80% of taxable income.

Can I request a refund through an amended return instead?

Yes. An individual, estate, trust, or fiduciary may request a refund by filing an amended return. A separate amended return is required for each year for which a refund is requested.

Official sources

• https://files.hawaii.gov/tax/forms/current/n109_i.pdf