NOL: Nebraska Net Operating Loss Worksheet (2024)
Nebraska · Nebraska DOR · Used for tax years 2024
The 2024 Nebraska Net Operating Loss Worksheet calculates an individual's Nebraska net operating loss available for carryback or carryforward. It starts with the federal net operating loss and applies Nebraska adjustments, with a separate calculation for nonresidents and partial-
Who files this form
Use this worksheet to calculate a Nebraska net operating loss (NOL) incurred in tax year 2024 that is available for carryback or carryforward.
- Do not complete it if you do not have a federal NOL. Without a federal NOL, you do not have a Nebraska NOL.
- Attach the worksheet to Form 1040N or amended Form 1040XN when claiming a deduction for a Nebraska NOL incurred in 2024.
- Nonresidents and partial-year residents must also complete and attach the worksheet's Schedule I. Their Nebraska NOL must come from or be connected with Nebraska sources.
What you'll need
- Your Nebraska Form 1040N or amended Form 1040XN.
- Federal forms and worksheets supporting your federal NOL. These may include Form 1045, Schedule A; Form 172; and Form 461, Limitation on Business Losses.
- Nebraska Schedule I, Form 1040N, for the adjustments used in the worksheet.
- For nonresidents and partial-year residents, Nebraska Schedule III, Form 1040N, for Nebraska-source income and adjustments.
- If you waived the federal carryback period, a copy of that election to attach to your Nebraska return for the loss year.
- For a carryback claim, the loss-year Nebraska Form NOL, a copy of Schedule A, Federal Form 1045, and a copy of the Federal Form 1040X or 1045 filed for the carryback year.
Attach an additional schedule or statement if needed to explain the deduction. If claiming losses from more than one year, attach a Nebraska Form NOL for each loss year.
How to file
Attach the completed worksheet to your original Nebraska Form 1040N or amended Form 1040XN claiming the loss deduction.
- Carryback: File an amended Nebraska income tax return for the year to which you are carrying the loss back. Attach the loss-year Form NOL and the required federal supporting forms.
- Carryforward: Report the Nebraska NOL deduction on Form 1040N, Schedule I, Part B, as an adjustment decreasing federal adjusted gross income (AGI). Enter any federal NOL deducted on the federal return on Part A as an adjustment increasing federal AGI.
- Nonresidents and partial-year residents: Also deduct the Nebraska NOL from Nebraska-source income on Schedule III when claiming a carryforward.
The worksheet does not provide a mailing address or e-file instructions.
Common mistakes
- Completing the worksheet without a federal NOL. The form specifically says not to do this.
- Treating a zero or positive result as a Nebraska loss. If line 35 is zero or greater, you do not have a Nebraska NOL. The same warning applies to line 40 for nonresidents and partial-year residents.
- Skipping Schedule I as a nonresident or partial-year resident. The form says to complete and attach it.
- Leaving out supporting attachments. Attach the federal NOL support and the Nebraska Form NOL for each loss year claimed.
Questions people ask
Can I carry back a Nebraska NOL incurred in 2024?
Only the farming loss portion of a 2024 NOL may be carried back.
Must Nebraska follow my federal carryback election?
Yes. The Nebraska NOL must be applied in the same manner as the federal NOL. If you elected to waive the entire federal carryback period, Nebraska must follow that election. Attach a copy of the election to the Nebraska return filed for the loss year.
Can an unused Nebraska NOL be carried forward?
If the NOL carryover or carryback exceeds your Nebraska tax table income or Nebraska-source income in the deduction year, a portion may be carried forward. The worksheet includes instructions for calculating the remaining carryover.
What if my marital filing status changes?
If your marital status changes because of marriage, divorce, or death, or you switch between joint and separate returns, you must use the IRS special rules to calculate the Nebraska NOL carryforward or carryback. The worksheet refers you to the Federal Form 172 instructions.