How do you carryback a California net operating loss (NOL)?
What you need to know about NOL carrybacks for California
California frequently changes its tax law regarding NOL calculations. To see Form 3805V instructions for a given tax year:
- Go to California's Forms and Publications Search page.
- Select the tax year from the Tax Year dropdown menu.
- In the field Form Number and/or Keywords, enter 3805 V.
To amend prior year returns for a CA NOL:
Before you start: we recommend making a copy of the client file. See Making a Copy of a Client in the Lacerte Tax Program for instructions.
- Go to Screen 59, Amended Return (1040-X).
- Under Return(s) to Amend, select the Federal/State return(s) to amend (Ctrl+T) (MANDATORY) from the dropdown menu.
- Select OK.
- Go to Screen 15, Net Operating Loss.
- Under the NOL panel, select California Net Operating Loss.
- Select the Type of Loss from the dropdown menu.
- Enter the Year of loss (e.g., 2019).
- You must a enter a loss from a prior year.
- Enter the amount of Initial loss.
- Enter the amount of AMT initial loss.
- Not all NOLs will have an accompanying AMT NOL.
- Enter the amount of Carryover from 20YY (Same as Initial loss).
- Enter the amount of AMT carryover from 20YY (Same as AMT Initial loss).