Schedule NLD: Illinois Net Loss Deduction (2024)
Illinois · Illinois DOR · Used for tax years 2024
Illinois Schedule NLD calculates your Illinois net loss deduction and the loss remaining for subsequent years. It reports losses by year, amounts previously carried back or forward, and the deduction for the carry year.
Who files this form
Use the 2024 Schedule NLD to figure an Illinois net loss deduction for losses arising in tax years ending on or after December 31, 1986.
The schedule is attached to Form IL-1120, IL-1120-ST, IL-1041, IL-1065, or the corresponding amended return.
What you'll need
Have the following information available to complete the schedule:
- Your name as shown on your return and your federal employer identification number (FEIN).
- The ending month and year for the carry year and each loss year.
- Your reported Illinois net losses, amounts previously carried back or forward, and the related carry years.
- Illinois base income for the carry year.
If a loss came from another company, you also need that company’s FEIN, the reason you may use its losses, and the date you acquired the loss.
The Discharge of Indebtedness Worksheet refers to federal Form 982 for the reduction to federal net operating losses carried over to the discharge year. It also asks for your income allocation ratio and available Illinois net loss carryovers.
How to file
Attach Schedule NLD to your Form IL-1120, IL-1120-ST, IL-1041, IL-1065, or the corresponding amended return.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Entering negative amounts: The form says to enter all amounts as positive figures.
- Skipping the instructions: The form tells you to read the instructions before completing the schedule. Instructions were not included in the supplied text.
- Completing Step 2 for your own company’s losses: Complete this step only if the loss on Step 1, Line 1, originated from a company other than the one filing the return.
- Leaving out required information: The form warns that failure to provide required information could result in a penalty.
Questions people ask
What is a “carry year”?
It is the year to which the loss is being carried.
Which loss goes in Column A?
Column A is labeled for the loss year that expires first.
How is the deduction on Line 7 calculated?
Enter the lesser of Line 3, your remaining Illinois net loss, or Line 6, your maximum NLD allowed.
Where do I enter the total deduction?
Add Line 7 from Columns A, B, and C, and enter the total in the designated box on the front of the schedule.
Where does the schedule show the loss remaining for later years?
Line 10 shows your remaining NLD for subsequent years. Calculate it by subtracting Line 7 from Line 3.