511-NOL: 2024 Form 511-NOL Oklahoma Net Operating Loss Full Year Residents Only (2024)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2024
Form 511-NOL is a supplement to Oklahoma Form 511 for full-year residents to calculate an Oklahoma net operating loss. It also calculates the loss absorbed in intervening years and the remaining loss carryover.
Who files this form
Form 511-NOL is a supplement to Form 511 for full-year Oklahoma residents calculating an Oklahoma net operating loss (NOL). This version is for loss years 2016 and later.
You must file the loss-year return to establish the Oklahoma NOL. If the loss comes from a pass-through entity, that entity must also file a tax return.
What you'll need
- Federal return for the loss year: A copy is required for the year entered on Schedule A.
- Federal return for each intervening year: A copy is required for the year entered on Schedule B.
- Oklahoma Form 511 and relevant schedules: The calculations use amounts from Form 511 and Schedules 511-A, 511-B, 511-C, and, when applicable, 511-D.
- Federal Schedule D, if applicable: The form uses capital gain and loss amounts from this schedule.
- Federal NOL carryover worksheet: Schedule B uses adjustments from this worksheet.
Common mistakes
- Continuing Schedule A when line 3 is zero or positive. The form says to stop because there is no NOL.
- Using negative numbers for Schedule A adjustments. Lines 4 through 26 must be entered as positive numbers. Follow the line-specific instructions to enter zero where required.
- Combining intervening years on one Schedule B. Use a separate Schedule B for each year.
- Including the wrong NOL in Schedule B subtractions. Line A2 must exclude the NOL for the listed NOL year and later years.
- Leaving out a federal NOL adjustment. Schedule B, line A6, must include any federal NOL carryback or carryover included in federal AGI on line A1.
- Overlooking the itemized deduction limit. Beginning with tax year 2018, Oklahoma itemized deductions are limited to $17,000. Charitable contributions and medical expenses are not subject to that limit. If deductions are limited, use Schedule 511-D to determine allowable modified itemized deductions.
Questions people ask
Do I need a federal NOL to have an Oklahoma NOL?
No. Oklahoma determines its NOL separately under Internal Revenue Code Section 172, as modified by the Oklahoma Income Tax Act. An Oklahoma NOL is allowed without regard to whether a federal NOL exists.
What determines the carryback and carryforward periods?
The form says these periods are determined solely by Internal Revenue Code Section 172. It does not list specific numbers of years.
Is there a special limit for a farming-loss carryback?
Yes. A farming NOL may be carried back under the Internal Revenue Code, but the carryback cannot exceed the lesser of $60,000 or the loss properly shown on Federal Schedule F reduced by one-half of net income from all other sources outside Schedule F.
What does Schedule B calculate?
Schedule B calculates modified taxable income for an intervening year. That amount is the NOL absorbed in that year. The schedule then calculates the remaining Oklahoma NOL carryover.
What if I use the standard deduction or have no positive out-of-state income?
If you use the standard deduction, go directly to Schedule A. If you have no positive out-of-state income, use all of your Oklahoma itemized deductions to compute the Oklahoma NOL and go directly to Schedule A. When checking for positive out-of-state income, net out-of-state income and losses together.