Form 1045 (2013) Checklist
Purpose and Scope
Form 1045 permits individuals, estates, and trusts to request a fast tentative refund by carrying back net operating losses, unused general business credits, or net section 1256 contracts losses to prior tax years. For 2013, the form reflects post-2010 NOL carryback rules with a standard two-year carryback period for most losses.
Taxpayers may claim the domestic production activities deduction on line 23 of Schedule A as a deduction component. Itemized deduction worksheets include 2013-specific thresholds for high-income taxpayers subject to phaseout limitations under the reinstated Pease limitation.
Filing Steps for 2013
Step 1: Confirm Eligibility and Loss Type
You must determine whether you are carrying back a 2013 net operating loss, unused general business credit, or net section 1256 contracts loss. The 2013 form does not accept carrybacks of credits arising from tax years after 2010 unless those credits themselves originated from a prior carryback. Enter the loss or credit amount from the correct source document, such as Schedule A line 25 for NOL or Form 3800 for general business credit.
Step 2: Complete Ownership and SSN Information
Enter the 2013 tax year and filing date on the appropriate lines. If your SSN changed between 2013 and any carryback year, or if you filed under a different SSN during the carryback period due to a name change, report that SSN and the year affected on lines 5a and 5b. For joint filers, include spouse's SSN at the top of page 1.
Step 3: Report Return Filing Status Changes
If you filed joint returns for some carryback years and separate returns for others, list each year and mark it "J" for joint or "S" for separate. This disclosure proves critical because the NOL deduction and tax computation on Schedule A page 3 must be recalculated using the filing status that was actually used in each carryback year.
Step 4: Disclose Accounting Period Changes
You must report any IRS-approved accounting period changes on line 6. If you changed your accounting period and received IRS permission to change, enter the date permission was granted. This affects which carryback years are eligible and whether the loss must be prorated.
Step 5: Identify Reportable Transactions and Tax Court Petitions
- Answer "Yes" on line 7 if you have filed or will file a Tax Court petition for any carryback year.
- Answer "Yes" on line 8 if any portion of the NOL or section 1256 loss results from a reportable transaction under Treasury regulations and requires disclosure on Form 8886.
- Answer "Yes" on line 9 if the loss carryback triggers the release of foreign tax credits or dependent credits tied to foreign tax credit limitation.
Step 6: Calculate NOL on Schedule A, Page 2
Start with 2013 taxable income from Form 1040, line 43 (or Form 1040NR, line 39). For estates and trusts, increase the amount by charitable deduction, income distribution deduction, and exemption.
Work through lines 2 through 24 to isolate nonbusiness and business capital losses, apply the section 1202 small business stock exclusion as a positive entry, subtract the 2013 domestic production activities deduction on line 23, and account for any NOL carryovers from prior years on line 24. Combine all adjustments on line 25; if the result is negative, this is your 2013 NOL.
Step 7: Refigure Taxable Income and Tax for Each Carryback Year
For each carryback year, enter the original taxable income before the 2013 NOL carryback on line 2 of Schedule A, page 3. On line 1, enter the portion of the 2013 NOL to be deducted in that carryback year; do not exceed the carryback year's taxable income.
- Include adjustments for net capital loss deductions, section 1202 exclusion, DPAD, and other items through line 8.
- Calculate modified taxable income on line 9.
- Determine any NOL carryover to the next prior year on line 10.
Step 8: Refigure Itemized Deductions
Complete the itemized deduction adjustment worksheet only if line 3, 4, or 5 on Schedule A, page 3, shows an amount greater than zero for the carryback year. For tax year 2013, the Pease limitation on itemized deductions applies to high-income taxpayers with AGI exceeding threshold amounts: $300,000 for married filing jointly, $275,000 for head of household, $250,000 for single filers, and $150,000 for married filing separately. Use each carryback year's specific thresholds and phaseout percentages when refiguring itemized deductions for that year.
Step 9: Compute Tax on Main Form
In the "Before carryback" column for each carryback year, enter the tax as originally computed. In the "After carryback" column, enter the NOL deduction after carryback and recalculate AGI, deductions, taxable income, income tax, alternative minimum tax, and total income tax.
Subtract general business credit and other credits from the total tax to arrive at net income tax liability. Add self-employment tax and other taxes to determine final liability amounts for comparison purposes.
Filing Deadlines and Requirements
You must file Form 1045 within one year after the end of the year in which the NOL, unused credit, net section 1256 contracts loss, or claim of right adjustment arose. File your 2013 income tax return no later than the date you file Form 1045. Attach all required forms and schedules to avoid processing delays or disallowance of your application.
Need Help With Your Tax Filing?
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
We offer:
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Call now before filing: (888) 260-9441
Fast transcript pull available
This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
