Form 1045 (2024) – Application for Tentative Refund
Checklist for 2024 Tax Year
Purpose: Form 1045 permits individuals, estates, and trusts to claim tentative refunds from net operating losses, unused general business credits, or net section 1256 contracts losses carried back to preceding tax years. For 2024, filers must account for modified carryback rules under current law.
Filing Steps
1. Verify Eligibility and Carryback Type (Line 1)
Confirm the loss or credit originated in the 2024 tax year and identify which carryback category applies: NOL (Form 172), unused general business credit, or net section 1256 contracts loss.
Generally, an NOL occurring in 2024 can be carried back 2 years only by some farmers and some insurance companies. You must document that the carryback year is allowable under current NOL limitation rules and that no Tax Court petition is pending for that year.
2. Complete Tax Year and Return Filing Information (Lines 2–3)
Enter the 2024 tax year period and the date the 2024 annual return was filed. If claiming a carryback of an unused credit created by a prior carryback, list that first carryback year.
The application must be filed on or after the date the annual return is filed, so verify that the filing date of the 2024 return precedes the Form 1045 filing date.
3. Report Filing Status Consistency (Line 4)
List each prior year with its corresponding filing status (joint or separate) if the joint return status changed between 2024 and the carryback years.
The 2024 instructions require explicit notation to prevent misapplication of loss or credit allocation rules across filing statuses.
4. Disclose Reportable Transactions (Line 8)
Determine whether any loss or credit claimed on Form 1045 results from a reportable transaction requiring disclosure on Form 8886.
Mark "Yes" if the loss or credit derived from transactions meeting disclosure thresholds. Filers must apply current reportable transaction regulations without reference to suspended or superseded guidance.
5. Calculate NOL Deduction After Carryback (Line 10)
For each carryback year, compute the NOL deduction after applying the carried-back NOL amount. Reference Form 172 or the NOL carryback worksheet in the 2024 Form 1045 instructions.
Do not include NOLs that exceed the current-law deduction limitation for that year.
6. Adjust Gross Income and Deductions (Lines 11–12)
Recompute adjusted gross income and total deductions for each carryback year as if the NOL or credit had been claimed in that year.
Include only deductions allowable under the 2024 tax law for the years being recalculated. Do not apply retroactive law changes unrelated to the carryback.
7. Recalculate Premium Tax Credit Adjustments (Line 17)
Enter excess advance payments for premium tax credit (Form 8962) for each applicable carryback year.
For carryback year 2021 only, also include any excess advance payments of the child tax credit on line 17. The child tax credit advance payment program operated only during 2021 under the American Rescue Plan Act and does not apply to other carryback years.
8. Report Additional Medicare Tax and Net Investment Income Tax (Lines 26–27)
Calculate additional Medicare tax (0.9% withholding and self-employment tax adjustments) and net investment income tax (3.8% on unearned income) for each carryback year using current 2024 thresholds.
Calculations must reflect filing status-specific income thresholds without carryback adjustments unless the loss itself reduces modified adjusted gross income below thresholds.
9. Attach Form 172 and Computation Schedule
- Include Form 172 (for NOL carryback) or the applicable credit carryback document.
- Provide a detailed attachment showing the before and after tax calculations for each carryback year, clearly labeled with year and filing status.
- Link lines 16–30 explicitly to source schedules or IRS worksheets as the 2024 instructions require.
- Schedules A and B were removed from Form 1045 for 2024 and are now part of Form 172.
10. Address Foreign Tax Credit Release (Line 9)
Answer "Yes" and attach an explanation if the carryback causes the release of foreign tax credits or other credits dependent on foreign tax credit availability.
Show which credits are released and the reason. The 2024 guidance continues to require disclosure of credit interaction effects when carryback reduces or eliminates the credit base.
2024 Year-Specific Updates
NOL Calculations on New Form 172
Form 1045 has been revised, and Schedules A and B have been removed. Figure an NOL using the new Form 172 and its instructions.
The 2024 Form 1045 now relies entirely on Form 172 for NOL computation, marking a significant structural change from previous years.
Reportable Transaction Disclosure Requirement (Line 8)
Form 1045 instructions incorporate 2024 Treasury Regulation updates requiring disclosure on Form 8886 for any reportable transaction generating a loss or credit.
Filers must confirm that loss or credit does not derive from transactions meeting the listed transaction or transaction of interest thresholds.
Modified Adjusted Gross Income Thresholds for Net Investment Income Tax
The 2024 Form 1045 instructions reference 2024 MAGI thresholds for the 3.8% net investment income tax (line 27).
Filers must use 2024 threshold amounts for the carryback year calculations. Carryback must not create unintended NIIT liability in prior years.
Self-Employment Tax Calculation Without Carryback Reduction
Line 25 requires a separate self-employment tax calculation for each carryback year.
The 2024 instructions clarify that NOL carryback does not reduce self-employment tax liability in prior years. Self-employment tax remains unchanged regardless of the type of loss carried back.
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.
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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.
