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INSTRUCTIONS: ALABAMA NET OPERATING LOSS CARRYBACK OR CARRYFORWARD (Form NOL-85A)

 

If you complete an Alabama form NOL-85 and determine that you have a net operating loss which can be carried back or forward, you should apply it to the tax year it will be carried to by completing a form NOL-85A. This form is found on the website of the Alabama Department of Revenue.

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 1: Enter the year to which the loss is being carried at the top-right corner.

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 2: Enter your name and Social Security number. 

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 3: On line 1a, enter the beginning and ending dates of the tax year in which the loss was incurred.

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 4: On line 1b, indicate whether you elected to carry this loss back on form NOL-85 by checking "Yes" or "No."

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 5: On line 1c, indicate whether you filed the subsequent year's return in a timely fashion and claimed the net operating loss there by checking "Yes" or "No."

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 6: Enter your net operating loss on line 2 and your taxable income on line 3. 

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 7: Document your personal and dependent exemptions on lines 4a and 4b. Enter their sum on line 5. 

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 8: Enter the sum of lines 3 and 5 on line 6. 

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 9: If line 6 is greater than line 2, enter zero on line 7 and complete Part II below. If line 2 is greater, subtract line 6 from line 2, enter the difference on line 7 and complete Part II.

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 10: If applicable, complete lines 8 through 14 as instructed.

 

Alabama Net Operating Loss Carryback Or Carryforward NOL-85A Step 11: Lines 15 through 19 of Part III are for nonresidents only. The percentage of your income subject to Alabama taxation should be used to recompute lines 11a through 11e.