Form 1045 (2015) — Application for Tentative Refund
Purpose
Form 1045 allows individuals, estates, and trusts to apply for a quick refund resulting from carryback of a 2015 net operating loss (NOL), unused general business credit, or net section 1256 contracts loss. The 2015 instructions incorporate guidance on the interaction between NOL carryback and excess advance premium tax credit repayment. Filers must report both line 17 (excess APTC repayment) and recalculated income tax when an NOL is carried back to prior years.
Filing Steps for 2015
Eligibility and Initial Requirements
Confirm filer eligibility as an individual, estate, or trust with a 2015 NOL, unused general business credit, or net section 1256 contracts loss. Verify that no Tax Court petition has been filed for any carryback year (line 7). Complete Form 1045 only for the loss or credit year itself (2015). Do not use this form to apply losses or credits from prior years.
Computing the 2015 NOL
Complete Schedule A (page 3) to compute the 2015 NOL. Start with taxable income from Form 1040 line 41 or Form 1040NR line 39. Include the 2015 domestic production activities deduction on Schedule A line 23 as a positive number if claimed on your 2015 return. Report nonbusiness and business capital loss limitations separately (lines 2–14) before combining with other deductions.
Determining Carryback Years
Enter the carryback years on page 1 (boxes for “preceding tax year ended”). Generally, NOLs are carried back 2 years unless they qualify as eligible losses (3-year carryback), farming losses (5-year carryback), qualified disaster losses (5-year carryback), or specified liability losses (10-year carryback).
Elections can be made under section 172(b)(3) to waive or reduce these carryback periods. Verify the exact tax years to which the NOL will apply by checking prior returns and any prior carryback elections.
Reconstructing Taxable Income
On page 2 (Computation of Decrease in Tax), reconstruct taxable income and total tax for each carryback year using columns labeled “Before carryback” and “After carryback.” For each carryback year, recalculate the NOL deduction (line 10), adjusted gross income (line 11), allowable deductions (line 12), taxable income (line 15), and income tax before credits (line 16).
Advance Premium Tax Credit Repayment
Report excess advance premium tax credit repayment (line 17) for each carryback year if the filer or spouse enrolled in a Marketplace plan and received advance premium tax credits (APTC) in that year. The 2015 instructions require this line to reflect any repayment due when the NOL carryback reduces the taxpayer’s modified adjusted gross income. This reduction triggers a different APTC repayment calculation. Attach a calculation showing the APTC impact.
Additional Taxes
- Do not adjust Additional Medicare Tax (line 26) because of any carryback.
- Recalculate Net Investment Income Tax (line 27) for each carryback year based on modified income after the NOL carryback is applied. Attach a detailed computation showing the investment income components.
- Report the health care individual responsibility amount (line 28) for each carryback year if applicable. Use the Shared Responsibility Payment Worksheet in the Instructions for Form 8965 to recalculate the payment.
Itemized Deduction Adjustments
Complete Schedule B (page 4) to adjust itemized deductions for each carryback year when a net capital loss deduction (line 3), section 1202 exclusion (line 4), or domestic production activities deduction (line 5) appears on the 2015 return. Lines 11–38 on Schedule B refigure medical expenses, mortgage insurance premiums, charitable contributions, casualty and theft losses, and miscellaneous deductions using the modified adjusted gross income calculated after the 2015 NOL carryback. This step applies only to individual filers who itemized deductions in the carryback year(s).
Signature and Submission
Sign and date the completed Form 1045. Both spouses must sign if the form is filed jointly and both are filing the application. Include the paid preparer signature block if a tax professional prepares the form. Mail the form in a separate envelope (not with the 2015 income tax return).
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.
Required Attachments
Attach the following supporting documentation to Form 1045 for the year of the loss or credit.
- Signed copies of the 2015 tax return
- 2015 Schedule D (Form 1040)
- Schedule A if itemized deductions were claimed
- Any prior-year carryback elections
- A statement explaining the carryback calculation
- Form 8886 if reportable transaction disclosure is required (line 8)
Year-Specific IRS Updates for 2015
The 2015 Form 1045 instructions expand line 17 (excess advance premium tax credit repayment) to address filers subject to APTC reconciliation under the Affordable Care Act. Carryback of the 2015 NOL may reduce household income and trigger recalculation of APTC repayment or eligibility for additional advance credits in the carryback year. This requires a separate computation attachment.
The instructions clarify the treatment of nonbusiness capital losses and the section 1202 exclusion (Schedule A, lines 2–5 and 17) in light of the ongoing application of capital gains rates and the Net Investment Income Tax. Filers must separately calculate gains and losses by type before computing the NOL.
Line 28 (health care individual responsibility payment) appears on page 2 for carryback calculations. This reflects the requirement that carryback calculations must recalculate the shared responsibility payment if APTC or cost-sharing reductions were claimed in a carryback year.
Schedule B (Adjustment to Itemized Deductions) includes guidance for the mortgage insurance premium limitation (lines 19–20) and refigured charitable contribution computation (lines 25–26). Line references have been updated to reflect 2015 Schedule A (Form 1040) numbering and prior-year variations for carryback years.
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.
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.
