Schedule NLD: Illinois Net Loss Deduction (2025)
Illinois · Illinois DOR · Used for tax years 2025
Illinois Schedule NLD figures your Illinois net loss deduction and tracks losses previously carried, the deduction for the carry year, and losses remaining for subsequent years. It attaches to Form IL-1120, IL-1120-ST, IL-1041, IL-1065, or a corresponding amended return.
Who files this form
Schedule NLD is used to figure an Illinois net loss deduction for losses arising in tax years ending on or after December 31, 1986.
Attach it to Form IL-1120, IL-1120-ST, IL-1041, IL-1065, or the corresponding amended return.
What you'll need
Have the following information ready:
- Your name as shown on your return and your federal employer identification number (FEIN).
- The month and year each loss year ended, and the carry year ending month and year.
- Your reported Illinois net losses and amounts previously carried back or forward, including the carry years.
- Your Illinois base income for the carry year.
- If a loss originated with another company, that company's FEIN, the reason you may use its loss, and the date you acquired the loss.
The Discharge of Indebtedness Worksheet asks for the federal net operating loss reduction amount, referring to federal Form 982, your income allocation ratio, and your 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.
In Step 1, enter the loss year that expires first in Column A. Follow the line calculations and enter the total of Line 7, Columns A, B, and C in the total box.
Complete Step 2 only if a loss on Step 1, Line 1 originated with another company. If you complete Step 2, also check the “merged losses” checkbox on the Illinois net loss deduction line of your return.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Do not enter losses as negative numbers. The form says to enter all amounts as positive figures.
- Do not skip the instructions. The form directs you to read them before completing the schedule, although they were not included in the supplied text.
- Do not complete Step 2 unless the loss originated with a company other than the one filing the return.
- If you complete Step 2, remember to check the “merged losses” checkbox on your return.
- Do not omit required information. The form warns that failure to provide it could result in a penalty.
Questions people ask
What does “carry year” mean?
It is the year to which the loss is being carried.
Which loss goes in Column A?
Enter the loss year that expires first in Column A.
How is the deduction calculated on Line 7?
For each column, enter the lesser of Line 3, your remaining Illinois net loss, or Line 6, your maximum net loss deduction allowed. Add Line 7 from Columns A, B, and C and enter that total in the designated box.
Where do I show losses that remain for later years?
Line 10 shows the remaining net loss deduction for subsequent years. Calculate it by subtracting Line 7 from Line 3.