5603: Net Operating Loss Carryback Refund Request (2025)
Michigan · Michigan Treasury · Used for tax years 2025
Michigan Form 5603, Farming Loss Carryback Refund Request, is used to claim a refund by carrying back a Group 2 TCJA net operating loss attributable to a farming business. It calculates the farming loss available for carryback, recalculates Michigan income tax for the carryback y
Who files this form
Use Form 5603 to request a refund by carrying back a Group 2 TCJA net operating loss (NOL) attributable to a farming business. The form identifies its use as Group 2 NOLs from loss year 2022 and future years.
- Only the farming portion of the loss may be carried back. A non-farming Group 2 TCJA NOL cannot be carried back.
- Do not file this form if you elected on Schedule MI-1045 to forgo the entire carryback period. That election cannot be reversed.
- You cannot use an amended MI-1040 instead of Form 5603 to claim a carryback refund.
- A Michigan excess business loss computed on Form MI-461 cannot be carried back, even if it contains a farming loss.
When it's due
For a 2025 farming loss, the instructions print these dates:
- April 15, 2026: The due date for the 2025 return.
- April 15, 2030: The deadline to file Form 5603 to carry back the 2025 Michigan farming NOL to a year otherwise outside the general four-year period for claiming a refund.
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.
- A calculation showing your redetermined Michigan NOL and/or Michigan taxable income if you check the filing or marital status change box on line 1. If you must recompute taxable income, include a separate statement identifying your income or loss items in AGI, with the type and location of each item.
- MI-1040CR-5 and Schedule CR-5 if requesting a Farmland Preservation Tax Credit. The MI-1040CR-5 instruction book lists additional required documentation.
To complete the form, have the carryback years' MI-1040 and Schedule 1 figures, along with information about credits, withholding, tax payments, and prior refunds or amounts carried to the next year.
Keep all records supporting an NOL for 6 years after the NOL expired or was absorbed.
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 Parts 2 and 3 to recalculate tax and determine the carryover. Use only column A if there is one carryback year. Complete lines 5 through 34 one column at a time.
- Sign and date the taxpayer certification. The form also provides a spouse's signature line and a preparer certification.
- Include the required supporting documents and mail the completed form to:
Michigan Department of Treasury
P.O. Box 30058
Lansing, MI 48909
Mail Form 5603 separately from the loss-year MI-1040. They go to different addresses, and sending them together may delay processing.
Common mistakes
- Sending Form 5603 with MI-1040. The forms must be mailed separately to different addresses.
- Using an amended MI-1040 to claim the carryback refund. Use Form 5603 instead.
- Applying a carryback when there is no income to offset. If line 10 is zero or less, enter zero and stop.
- Including penalty or interest on line 24. Leave those amounts out of tax paid with prior returns.
- Leaving out supporting documents. Review the required documentation to help reduce processing delays.
- Ignoring a filing or marital status change. Check line 1 when applicable and include the required recomputation details.
Questions people ask
How far back can I carry a farming loss?
Generally, a farming NOL may be carried back to the two taxable years before the loss year.
Is there a limit on the carryback deduction?
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 reduced by applicable Michigan-sourced excess capital losses and other required modifications described in the instructions.
Can I change my election to skip the carryback period?
No. An election on Schedule MI-1045 to forgo the entire carryback period is irrevocable. If you made that election, do not file Form 5603.