CT-3.4: Net Operating Loss Deduction (NOLD) (2024)
New York · NY DTF · Used for tax years 2024
New York Form CT-3.4 calculates a corporation’s net operating loss deduction and tracks losses available for use or carryforward. It also reports apportioned business income or loss and includes an election to waive carryback of the current-year net operating loss.
Who files this form
Form CT-3.4 is used to calculate a corporation’s net operating loss deduction (NOLD) and net operating loss (NOL) carryforward.
The form states that you must complete and file it with Form CT-3 or CT-3-A each tax year. Schedules B and C are for Form CT-3-A filers only and cover members entering or leaving a combined group.
What you'll need
Have these forms and records available:
- Your corporation’s legal name and employer identification number (EIN).
- Form CT-3 or CT-3-A, including Part 3, line 17, and Part 2, lines 1b and 1c.
- The current-year business income base tax rate from the Tax rates schedule in Form CT-3-I or CT-3-A-I.
- Your prior-year Form CT-3.4 for the NOL carryforward amount.
- Records of NOL carrybacks, including each loss year’s beginning and ending dates and the amount allowed to be carried back.
- Records of expired NOL carryforwards and carryforwards unavailable for use in the current tax year.
- Tax-period dates and apportioned business income or loss amounts for Schedule A.
For combined groups, also have the names, EINs, relevant dates, and NOL amounts for members who joined or left during the current tax year.
The form directs you to read Form CT-3.4-I before completing it.
How to file
- File Form CT-3.4 with Form CT-3 or CT-3-A each tax year.
- Read Form CT-3.4-I before completing the form.
- Complete Schedule A for each tax period.
- If you are making the election to waive carryback of the current-year NOL, mark an X in box A and see the election instructions referenced on the form.
- If you file Form CT-3-A, use Schedules B and C for the new and former combined-group members described on those schedules.
The supplied form text does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out Form CT-3.4: The form reminds filers to complete and file it with Form CT-3 or CT-3-A each tax year.
- Skipping Schedule A: It must be completed for each tax period.
- Entering a negative amount on line 4: The form says not to enter less than zero.
- Using a different tax rate on line 4: Use the same business income base tax rate used for line 1.
- Starting without reviewing the instructions: The form directs you to see Form CT-3.4-I before completing it.
Questions people ask
Which return goes with Form CT-3.4?
File it with Form CT-3 or CT-3-A. The form says this must be done each tax year.
How do I indicate that I am electing to waive carryback of the current-year NOL?
Mark an X in box A. The form also directs you to the “Election to waive carryback” section of the instructions.
Where do I report an NOL carryforward from the prior year?
Enter the NOL carryforward from your prior-year Form CT-3.4 on line 5a.
Who uses Schedules B and C?
These schedules are for Form CT-3-A filers only. Schedule B covers new members included in the combined group for the current tax period. Schedule C covers former members not included in the group at the end of the current tax period.
Where is the NOL available to carry forward calculated?
Line 7 calculates the NOL available to be carried forward by subtracting line 7d from line 7b.