56A: Net Operating Loss Application and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Idaho Form 56A tracks the application of net operating losses across tax years. It records Idaho losses and absorption income from Form 56, losses used as carrybacks and carryforwards, and the total carryover loss remaining.
Who files this form
Each member of a unitary group must complete a separate Form 56A to carry back and carry forward an Idaho net operating loss (NOL).
For a corporation with multiple entities operating in Idaho, each entity with Idaho activity can carry back $100,000 of NOL, limited to that entity’s Idaho taxable income in the year receiving the carryback.
What you'll need
Have the following information ready:
- Names as shown on the tax return and the Social Security number or EIN.
- Form 56, line 7, for the Idaho loss amount.
- Form 56, line 8, for Idaho absorption income.
- Amounts of the loss used in carryback and carryforward years, and the remaining loss.
Form 56A has columns for loss or absorption years from 2003 through 2025.
How to file
To carry back an Idaho NOL for a loss year beginning on or after January 1, 2013, file an amended return within one year after the end of the loss year. The carryback applies to the prior two years. After that filing period, you must carry the loss forward.
On Form 56A, enter the Idaho loss from Form 56, line 7, and Idaho absorption income from Form 56, line 8. Use the carryback and carryforward lines to show losses used, then report the remaining loss and total carryover loss remaining.
The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Not completing separate forms for unitary-group members. Each member must complete its own Form 56A to carry back and carry forward Idaho NOL.
- Carrying back an affected business entity’s loss. An affected business entity (ABE) must carry its Idaho NOL forward to succeeding taxable years.
- Missing the carryback filing window. For loss years beginning on or after January 1, 2013, an amended carryback return must be filed within one year after the end of the loss year. After that, the loss must be carried forward.
Questions people ask
Where do the loss and absorption income amounts come from?
Enter the Idaho loss from Form 56, line 7, on Form 56A, line 1. Enter Idaho absorption income from Form 56, line 8, on Form 56A, line 2.
How long can a remaining Idaho NOL be carried forward?
The instructions say the remaining amount can be applied to the next 20 years until the NOL is fully absorbed.
How does the 2025 loss example work?
The example starts with a $249,000 loss for 2025. It applies $73,500 to 2023 and $26,500 to 2024 because the carryback is limited to $100,000. The remaining $149,000 can be used in the next 20 years.
What happens if an affected business entity stops electing ABE status?
If the entity does not make the ABE election in a succeeding taxable year, its unused Idaho NOL flows through to its members.