NC-NOL: Net Operating Loss Worksheet (2024)
North Carolina · North Carolina DOR · Used for tax years 2024
Form NC-NOL is a worksheet used to determine whether you have a North Carolina net operating loss for tax year 2024. It calculates the loss using federal adjusted gross income, North Carolina additions and deductions, and adjustments for business and nonbusiness income, deduction
Who files this form
The worksheet does not state who must file it. It provides calculations for:
- Determining whether you have a North Carolina net operating loss (N.C. NOL) for tax year 2024 in Part 1.
- Determining your federal and North Carolina NOL carryover deductions for tax year 2024 in Parts 2A and 2B.
- Calculating your total N.C. NOL deduction for tax year 2024 in Part 2C.
What you'll need
Have the following information available to complete the worksheet:
- Your name and federal tax ID number.
- Your 2024 federal income tax return information, including federal adjusted gross income, any excess business loss included as other income, and any IRC section 1202 exclusion.
- Your additions to and deductions from federal adjusted gross income, plus your N.C. standard or itemized deduction amount.
- Your business and nonbusiness capital gains and losses, nonbusiness deductions, and nonbusiness income other than capital gains.
- Your net short-term and net long-term capital gains or losses.
- Your N.C. NOL deduction for losses from prior years.
- Federal NOL amounts from tax years 2009 through 2021 that were not absorbed by January 1, 2022, and N.C. NOL carryovers from tax years 2022 and 2023.
Common mistakes
- Not reading the instructions. The worksheet warns that failing to read the instructions in their entirety will result in an incorrect N.C. NOL calculation.
- Sending a photocopy. The form says not to send a photocopy of the worksheet.
- Missing the capital-loss skip rule. If you do not have a loss on Line 16c and do not have an IRC section 1202 exclusion, skip Lines 16 through 21 and enter the amount from Line 15 on Line 22.
Questions people ask
How do I know whether I have an N.C. NOL for 2024?
Complete Part 1. On Line 24, add Lines 1, 9, 17, 21, 22, and 23. If the result is less than zero, enter that amount. If it is zero or more, you do not have an N.C. NOL.
Which prior-year losses are listed in the carryover sections?
Part 2A lists federal NOLs from tax years 2009 through 2021 that were incurred and not absorbed by January 1, 2022. Part 2B lists N.C. NOL carryovers from tax years 2022 and 2023.
Where do I enter the total N.C. NOL deduction?
Add Lines 18 and 19 in Part 2C. Enter the total on Part 2C, Line 20, and on Form D-400, Schedule S, Line 39.
What amount goes on Part 1, Line 19?
Enter the smaller of Line 16 or $3,000. If you filed your N.C. tax return as married filing separately, enter the smaller of Line 16 or $1,500.