NOL: Nebraska Net Operating Loss Worksheet (2025)
Nebraska · Nebraska DOR · Used for tax years 2025
The Nebraska Net Operating Loss Worksheet computes your Nebraska net operating loss for tax year 2025 that is available for carryback or carryforward. It starts with your federal net operating loss and applies Nebraska adjustments, with an additional computation for nonresidents
Who files this form
Use this worksheet to calculate a Nebraska net operating loss (NOL) incurred in tax year 2025 that is available for carryback or carryforward. Attach it to the Nebraska return claiming the loss deduction.
Do not complete this worksheet if you do not have a federal NOL. Without a federal NOL, you do not have a Nebraska NOL.
Nonresidents and partial-year residents must also complete and attach the worksheet’s Schedule I. Their Nebraska NOL must be derived from or connected with Nebraska sources.
What you'll need
- Your original or amended Nebraska Individual Income Tax Return, Form 1040N.
- Federal forms and worksheets supporting your federal NOL. These may include Schedule A of Federal Form 1045, Federal Form 172, and Federal Form 461, Limitation on Business Losses.
- Nebraska Schedule I, Form 1040N, for the adjustments used on the worksheet.
- For nonresidents and partial-year residents, Nebraska Schedule III, Form 1040N, for the Nebraska income amounts entered on worksheet lines 42 through 44.
- A copy of your federal election to waive the entire NOL carryback period, if you made that election. Attach it to the Nebraska return for the loss year.
For a carryback claim, attach the Nebraska Form NOL for the loss year, a copy of Schedule A of Federal Form 1045, and a copy of Federal Form 1040X or 1045 filed for the carryback year.
If you deduct losses from more than one year, attach a Nebraska Form NOL for each loss year. Attach an additional schedule or statement if needed to explain the deduction.
How to file
Attach the worksheet to your original or amended Nebraska Form 1040N. To amend a 2025 return, use Form 1040N and check the Amended Return box. To amend a tax year before 2025, use Form 1040XN for the year being amended.
To claim a carryback, file an amended Nebraska income tax return for the carryback year and attach the required supporting forms.
To claim a carryforward, enter 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 Schedule I, Part A, as an adjustment increasing federal AGI. Nonresidents and partial-year residents must also deduct the Nebraska NOL from Nebraska-source income on Schedule III.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Completing the worksheet without a federal NOL. The worksheet says not to complete it in that situation.
- Treating a zero or positive result as a Nebraska NOL. If line 41 is zero or greater, you do not have a Nebraska NOL. The same warning applies to line 46 for nonresidents and partial-year residents.
- Leaving out Schedule I for a nonresident or partial-year resident. These taxpayers must complete and attach the worksheet’s Schedule I.
- Using Form 1040XN to amend 2025. Beginning with tax year 2025, use Form 1040N and check the Amended Return box. Form 1040XN is used for years before 2025.
Questions people ask
Can I have a Nebraska NOL without a federal NOL?
No. The worksheet says you do not have a Nebraska NOL if you do not have a federal NOL.
Can I carry back a loss incurred in 2025?
For an NOL incurred in tax year 2025, only the farming loss portion may be carried back. Individual taxpayers have the same carryback and carryforward periods as permitted for federal NOLs.
Does my federal election to waive the carryback period apply to Nebraska?
Yes. If you elected to waive the entire federal NOL carryback period, you must follow that election for Nebraska purposes. Attach a copy of the election to your Nebraska return for the loss year.
What if my residency changes between the loss year and the deduction year?
Special rules apply. A loss incurred while you were a nonresident or partial-year resident remains limited to the amount derived from or connected with Nebraska sources, even if you deduct it in a year when you file as a resident.