Form 1045 (2022) – Application for Tentative Refund
Year-Specific Filing Guide
Form 1045 permits individuals, estates, and trusts to request a tentative refund by carrying back net operating losses, unused general business credits, or net Section 1256 contract losses to prior years. The 2022 version incorporates Schedule A adjustments reflecting post-TCJA deduction limitations, including charitable contribution and casualty/theft loss frameworks that remained in effect through the 2022 tax year. Partnerships, S corporations, and C corporations cannot use this form and must file amended returns instead.
Entity and Carryback Eligibility
You must verify taxpayer eligibility before filing Form 1045. Only individuals, estates, and trusts may use this application process. On page 1, line 1, you identify the 2022 carryback item by checking box (a) for Net Operating Loss from Schedule A line 24, box (b) for Unused General Business Credit, or box (c) for Net Section 1256 Contracts Loss. One primary loss or credit type drives the application, though secondary items may support computations.
Net Operating Loss Carryback Limitations for 2022
Generally, you cannot carry back an NOL arising in the 2022 tax year to offset income from prior years. An exception applies to farming losses and certain casualty insurance companies other than life insurance, which retain the ability to use the two-year carryback provision. All other taxpayers with 2022 NOLs must carry those losses forward to future tax years indefinitely, subject to the 80% taxable income limitation that applies to NOLs arising after 2020.
If you have a farming loss and have not elected to waive the carryback period, you must carry the entire farming loss to the second tax year before the loss year. Any loss not absorbed in the second preceding year carries to the first preceding year, and any remaining loss carries forward indefinitely.
Schedule A NOL Computation Requirements
- Complete Schedule A if you claim a 2022 net operating loss. You must reference 2022 Schedule D (Form 1040) lines 16, 19, and 21 to calculate Section 1202 exclusions and capital loss carryovers.
- Line 16 of Schedule A explicitly references 2022 Schedule D line 16, and line 19 references 2022 Schedule D line 21. You must not substitute 2021 or prior-year forms.
- On Schedule A, line 5, enter the qualified business income deduction under Section 199A as a positive number. Adding back the QBI deduction means this deduction does not increase the NOL amount itself for 2022.
- Complete itemized deduction adjustments on Schedule A lines 11–38 only if carrying back an NOL that affects nonbusiness capital losses, charitable contributions, or casualty/theft losses. If you did not itemize in the carryback year, leave lines 11–38 blank.
Credit and Tax Adjustments on Page 2
On page 2, line 17, include excess advance payments for premium tax credit and child tax credit as separate income adjustments. For 2022, reconciliation of third Economic Impact Payment amounts appears on Form 1040 Schedule 3, not Form 1045 directly. However, you must enter adjustments to prior-year estimated premium tax credits or child tax credit carryovers on line 17 when recomputing tax for the carryback year.
Report line 26, Additional Medicare Tax, without adjustment for the carryback. The Additional Medicare Tax thresholds remain constant at $250,000 for married filing jointly, $125,000 for married filing separately, and $200,000 for all other taxpayers. These thresholds are not indexed for inflation and have not changed since the tax was implemented.
Mandatory Disclosure Questions
On page 1, lines 7–9, you answer three required disclosure questions:
- Line 7 requires disclosure of any Tax Court petition filed for carryback years.
- Line 8 requires disclosure if the loss or credit arose from a reportable transaction requiring Form 8886.
- Line 9 requires disclosure if the NOL or Section 1256 loss triggered a foreign tax credit release.
These compliance checkpoints are mandatory. Answering “No” without proper support exposes the claim to challenge later.
Computation of Decrease in Tax
Complete columns for each carryback year on pages 3 and 4, using the Computation of Decrease in Tax section and Schedule B. The form provides three-year columns to accommodate up to three prior years of carryback. For eligible 2022 farming losses, you use the two preceding tax years (2021 and 2020). You recalculate taxable income, exemption amount, and tax liability for each carryback year on Schedule B, accounting for prior NOL carryovers.
Line 10 of Schedule B includes NOL carryover from years before 2022 if the carryback year had its own unabsorbed NOL. You must distinguish between the 2022 NOL carryback and pre-2022 NOL carryovers already reflected in the carryback year’s filed return.
Documentation and Explanation Requirements
Attach a detailed explanation of tax computation on page 1, line 16. The instructions require an explanation reconciling the “Before carryback” and “After carryback” tax columns. Include a reference to an AMT recalculation if applicable, and state which depreciation, Section 179, or bonus depreciation elections changed between years.
Filing Procedures
- Mail Form 1045 in a separate envelope and do not attach it to the original return. The instructions prohibit attachment to ensure processing as a distinct claim.
- Include a cover letter identifying the taxpayer’s SSN, 2022 tax year, and carryback year or years.
- You must apply 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.
Carryback Year Adjustments
For the carryback year 2022, the medical expense floor remains 7.5% of modified AGI. You must confirm the threshold percentage in the carryback year’s original return instructions to avoid recalculation errors.
Unused general business credits must be carried back one year before carrying forward for 20 years. For eligible farming losses, the two-year carryback period applies specifically to the portion of the NOL attributable to farming business income and deductions.
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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.
