RCT-103: 2025 Net Operating Loss Schedule (RCT-103) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
Pennsylvania Form RCT-103 is a Net Operating Loss Schedule filed with RCT-101. It calculates the net operating loss deduction for the current tax period and tracks loss carryforwards available for the current and next periods.
Who files this form
Taxpayers supporting a net operating loss carryforward deduction for the current tax period must complete RCT-103. The schedule calculates the loss carryforward available to deduct in the current period and the amount carried forward to the next period.
File RCT-103 with RCT-101.
What you'll need
- RCT-101: Use the same FEIN and corporation name, and take taxable income from Section C, Line 10.
- Prior-year RCT-103 and tax-period information: Have the loss carryforward amounts and beginning and ending dates for periods with returns filed.
- If §381 or §382 limits your losses: Attach a statement identifying the limitation amount and supporting calculation. Include a detailed schedule explaining the applicable merger, liquidation or change in control and supporting the limited loss claimed.
- If you acquired losses through a merger or liquidation: Complete and attach RCT-103ML. Provide copies of merger or liquidation documents if they were not provided on a prior return.
How to file
File RCT-103 with RCT-101.
- Enter your FEIN and corporation name as shown on RCT-101. Use MMDDYYYY for tax-period dates and whole dollars for amounts.
- Complete Part A to support the current-period net operating loss deduction and Part B to show loss carryforwards and amounts deducted.
- Carry the deduction from Part A, Line 4 to RCT-101, Page 2, Line 11.
- Attach any required limitation statement and RCT-103ML.
- For §381/§382 limitations or merged losses, also check the Section 381/382/Merger NOLs checkbox in Step C on Page 1 of RCT-101.
Common mistakes
- Combining short periods: Enter each short period separately. Do not combine amounts.
- Including the current period among prior-period entries: Lines 1 through 20 are for carryforward periods. Use Line 21 for the current period only if it has a loss.
- Filling in too many columns on Line 21: Complete only Columns A, B and F.
- Leaving out merger information: Failure to provide the required supplemental schedule and merger or liquidation documents may result in denial of losses.
- Transferring losses before notifying the department: The department must be notified of the merger or liquidation before any losses can be transferred.
Questions people ask
What percentage do I use on Part A, Line 3 for tax year 2025?
Multiply Line 1 by 40 percent (0.40).
How long can a net operating loss be carried forward?
Losses generated in tax periods beginning after December 31, 1997, may be carried forward 20 periods. A short year counts as one tax period.
What if no net loss carryforward is available?
Enter “0.”
How do I calculate the carryforward to the next period?
In Part B, subtract Column E, the amount deducted in the current period, from Column D, the carryforward to the current period. Enter the difference in Column F.
What if my losses came from a merger or liquidation?
Select Yes on Part A, Line 6, state the number of companies involved, check Column C on the corresponding Part B lines, and complete and attach RCT-103ML.