5603: Net Operating Loss Carryback Refund Request (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Michigan Form 5603, Farming Loss Carryback Refund Request, is used to claim a refund by carrying back the farming portion of a Group 2 TCJA net operating loss. It calculates the farming loss available for carryback, redetermines Michigan income tax for the carryback years, and co
Who files this form
Use Form 5603 to claim a refund by carrying back the farming-loss portion of a Group 2 TCJA net operating loss (NOL). The form identifies its use as loss year 2022 and future years.
- A non-farming Group 2 TCJA NOL cannot be carried back.
- A Michigan excess business loss computed on Form MI-461 cannot be carried back, even if it contains a farming loss.
- Do not file Form 5603 if you elected on Schedule MI-1045 to give up the entire carryback period. That election cannot be changed.
You cannot use an amended MI-1040 instead of Form 5603 to claim this carryback refund.
When it's due
For a farming NOL created in tax year 2024, the instructions give these dates:
- April 15, 2025: Due date for the 2024 return.
- April 15, 2029: Deadline to file Form 5603 to carry back the 2024 Michigan farming NOL to a year otherwise outside the general four-year refund limitation period.
If Form 5603 is filed after the four-year statutory period expires, no refund is allowed for the carryback year.
What you'll need
Include these supporting documents, as applicable:
- Schedule MI-1045 and all supporting documentation for the loss year, if not already provided to the Michigan Department of Treasury.
- Recalculation details if you check line 1 because of a filing or marital status change. Provide the calculation showing how you redetermined your Michigan NOL and/or Michigan taxable income. If recomputing taxable income, include a statement identifying your income or loss items in AGI, with the type and location of each item.
- Form MI-1040CR-5 if requesting a Farmland Preservation Tax Credit. Its instruction book lists additional required documentation.
You will also need figures from the carryback year's MI-1040 and Schedule 1, along with information about credits, tax payments, withholding, and previous refunds, to complete the form.
How to file
- Type or print in blue or black ink. Enter the loss year and taxpayer information.
- Complete Part 1 to determine the farming loss available for carryback.
- Complete Part 2 to recalculate Michigan income tax. Work through one carryback-year column at a time. If there is only one carryback year, use column A.
- Complete Part 3 to calculate the NOL carryover.
- Complete the taxpayer certification, sign and date the form, and include the required supporting documents.
Mail the completed form to:
Michigan Department of Treasury
P.O. Box 30058
Lansing, MI 48909
Mail Form 5603 separately from the loss year's MI-1040. They go to different addresses, and sending them together may delay processing.
Common mistakes
- Sending Form 5603 with the loss year's MI-1040. The form warns that they must be mailed to different addresses.
- Continuing when line 10 is zero or less. Enter zero and stop. You cannot apply an NOL carryback to a year with no income to offset.
- Including penalties or interest on line 24. Enter tax paid, not penalties or interest.
- Leaving out supporting documents. Review the required-document list to help avoid processing delays.
- Discarding NOL records too soon. Keep records that substantiate the NOL for six years after it expires or is absorbed.
Questions people ask
How far back can I carry a farming NOL?
Generally, a farming NOL can be carried back to the two taxable years before the loss year, starting with the earliest allowed year.
Is the carryback deduction limited?
Yes. The carryback is limited to the lesser of the Michigan NOL deduction or 80% of Michigan taxable income before exemptions and previously claimed NOL deductions.
What happens to an unused NOL?
An unused NOL may be carried forward indefinitely until absorbed. The carryover must be adjusted for Michigan-sourced excess capital loss and other required modifications from the carryback years.
What if my filing or marital status changed?
Check line 1. The change may affect the allowed deduction. The instructions direct you to IRS Publication 536 to determine your share of the Michigan NOL or recompute Michigan taxable income, and require supporting calculations.