Form 1045 - Application for Tentative Refund

2018

Department of the Treasury
Internal Revenue Service

Instructions for Form 1045
Application for Tentative Refund
Section references are to the Internal Revenue
Code unless otherwise noted.

Future Developments

For the latest information about
developments related to Form 1045 and
its instructions, such as legislation
enacted after they were published, go to
IRS.gov/Form1045.

What’s New
NOL carryback eliminated. The Tax
Cuts and Jobs Act (TCJA), section
13302, eliminated the option for most
taxpayers to carry back a net operating
loss (NOL). Most taxpayers can only
carry NOLs arising from tax years
ending after 2017 to a later year. An
exception applies to certain farming
losses. See section 172(b); Pub. 225,
Farmer’s Tax Guide; or Pub. 536, Net
Operating Losses (NOLs) for
Individuals, Estates, and Trusts, for
more information.
NOL limitation. The NOL deduction
cannot exceed 80% of taxable income
for losses arising in tax years beginning
after 2017. For more information, see
Pub. 536.
Annual losses limited. The TCJA,
section 11012, amended section 461 to
limit the amount of losses from the
trades or businesses of noncorporate
taxpayers that the taxpayer can claim
each year. Taxpayers can't deduct
losses in excess of a threshold amount
in the current year. The amount of the
excess business loss is treated as an
NOL carryover to later tax years. Use
Form 461 to figure the excess business
loss.

General Instructions
Purpose of Form

Individuals, estates, and trusts use
Form 1045 to apply for a quick tax
refund resulting from:
• The carryback of an NOL in certain
situations,
• The carryback of an unused general
business credit,
• The carryback of a net section 1256
contracts loss, or

Dec 10, 2018

• An overpayment of tax due to a claim
of right adjustment under section
1341(b)(1).

years. For more information, see the
Instructions for Schedule F (Form
1040).

Carrying back an NOL to an
earlier tax year may create an
CAUTION alternative minimum tax (AMT)
liability for that earlier year. This may be
true even if there was no AMT liability on
the tax return filed for that earlier year.

Farming loss. A farming loss is the
smaller of:
• The amount that would be the NOL
for the tax year if only income and
deductions from farming businesses (as
defined in section 263A(e)(4)) were
taken into account, or
• The NOL for the tax year.

!

Individuals, estates, and trusts
that carry back to years in which
CAUTION they have a section 965(a)
inclusion (a “965 year”) may not use this
form. An amended return must be used
to carry back to such years.

!

Waiving the carryback period. You
can choose not to carry back your NOL.
If you make this choice, then you can
carry your NOL forward indefinitely until
the NOL is fully absorbed. To make this
choice, attach a statement to your
original return filed by the due date
(including extensions) for the NOL year.
This statement must show that you are
choosing to waive the carryback period
under section 172(b).
If you filed your original return on time
but did not file the statement with it, you
can make this choice on an amended
return filed within 6 months of the due
date of the return (excluding
extensions). Attach a statement to your
amended return, and write “Filed
pursuant to section 301.9100-2” at the
top of the statement. Once you choose
to waive the carryback period, it is
generally irrevocable. If you choose to
waive the carryback for more than one
NOL, you must make a separate choice
and attach a separate statement for
each NOL year.

!

CAUTION

If you do not file this statement
on time, you cannot waive the
carryback period.

Definitions
Farming business. A farming
business includes the trade or business
of farming. This includes a cattle
operation, operating a nursery or sod
farm, or the raising or harvesting of trees
bearing fruit, nuts, or other crops, or
ornamental trees, such as evergreen
trees, if they are cut within the first 6
Cat. No. 13666W

Note. NOLs arising in tax years
beginning after 2017 are limited by
section 461(l), so the NOL carryback
generally will not exceed $250,000
($500,000 for joint returns). See the
Instructions for Form 461, Limitation on
Business Losses.

When To File

You must file Form 1045 within 1 year
after the end of the year in which an
NOL, unused credit, net section 1256
contracts loss, or claim of right
adjustment arose.

!

CAUTION

Be sure to file your 2018 income
tax return no later than the date
you file Form 1045.

If you carry back any portion of an
unused general business credit to tax
years before the 3 years preceding the
2018 tax year, you may need to use
additional Forms 1045. Complete lines
1 through 9 and Schedule A on only one
Form 1045 for the earliest preceding tax
years. You must sign this Form 1045 but
don’t need to sign the other Forms
1045.

Where To File

File Form 1045 with the Internal
Revenue Service Center for the place
where you live as shown in the
instructions for your 2018 income tax
return.

!

CAUTION

Don't include Form 1045 in the
same envelope as your 2018
income tax return.

What To Attach

Attach copies of the following, if
applicable, to Form 1045 for the year of
the loss or credit.
• If you are an individual, pages 1 and 2
of your 2018 Form 1040 and Schedules

1 through 6 and A, D, F, and J (Form
1040), if applicable.
• Any Form 4952, Investment Interest
Expense Deduction, attached to your
2018 income tax return.
• Form 461, Limitation on Business
Losses.
• All Schedules K-1 you received from
partnerships, S corporations, estates, or
trusts that contribute to the carryback.
• Any application for extension of time
to file your 2018 income tax return.
• All Forms 8886, Reportable
Transaction Disclosure Statement,
attached to your 2018 income tax
return.
• Forms 8302, Electronic Deposit of
Tax Refund of $1 Million or More.
• Alternative Minimum Tax Net
Operating Loss (AMTNOL) or
Alternative Tax Net Operating Loss
Deduction (ATNOLD) calculation.
• Form 6251, Alternative Minimum
Tax—Individuals, for each loss year.
• Any detailed allocation schedules for
a filing status change or for different
spouses between the gain and loss
years; see Pub. 536.
• Any applicable election statement.
• All other forms and schedules from
which a carryback results, such as
Schedule C (Form 1040); Form 3800,
General Business Credit; Form 6478,
Biofuel Producer Credit; Form 6781,
Gains and Losses From Section 1256
Contracts and Straddles; or Form 3468,
Investment Credit.
You must attach copies of all
required forms listed above and
CAUTION complete all lines on Form 1045
that apply to you. Otherwise, your
application may be delayed or
disallowed.

!

Processing the
Application

The IRS will process your application
within 90 days from the later of:
• The date you file the complete
application, or
• The last day of the month that
includes the due date (including
extensions) for filing your 2018 income
tax return (or, for a claim of right
adjustment, the date of the
overpayment under section 1341(b)(1)).
The processing of Form 1045 and
the payment of the requested refund
doesn't mean the IRS has accepted
your application as correct. If the IRS
later determines that the claimed
deductions or credits are due to an
overstatement of the value of property,
negligence, disregard of rules, or
substantial understatement of income

tax, you may have to pay penalties. Any
additional tax also will generate interest
compounded daily.
The IRS may need to contact you or
your authorized representative (for
example, your accountant or tax return
preparer) for more information so we
can process your application. If you
want to designate a representative for
us to contact, attach a copy of your
authorization to Form 1045. For this
purpose, you can use Form 2848,
Power of Attorney and Declaration of
Representative.

Disallowance of the
Application

Your application isn't treated as a claim
for credit or refund. It may be disallowed
if it has material omissions or math
errors that aren't corrected within the
90-day period. If the application is
disallowed in whole or in part, no suit
challenging the disallowance can be
brought in any court. But you can file a
regular claim for credit or refund before
the limitation period expires, as
explained later under Form 1040X or
Other Amended Return.

Excessive Allowances

Any amount applied, credited, or
refunded based on this application that
the IRS later determines to be
excessive may be billed as if it were due
to a math or clerical error on the return.

Form 1040X or Other
Amended Return

Individuals can get a refund by filing
Form 1040X, Amended U.S. Individual
Income Tax Return, instead of Form
1045. An estate or trust can file an
amended Form 1041, U.S. Income Tax
Return for Estates and Trusts. In most
cases, you must file an amended return
no later than 3 years after the due date
of the return for the applicable tax year.
If you use Form 1040X or other
amended return, follow the instructions
for that return. Attach to the amended
return a copy of Schedule A of Form
1045 showing the computation of the
NOL and, if applicable, a copy of
Schedule B of Form 1045 showing the
computation of the NOL carryover.
Complete a separate Form 1040X or
other amended return for each year for
which you request an adjustment.
You must file Form 1040X (or other
amended return) instead of Form 1045
to carry back:
• Any item(s) to a year in which you
have a 965(a) inclusion (a “965 year”),
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• A prior year minimum tax credit
released due to an NOL or net capital
loss carryback,
• A prior year foreign tax credit
released due to an NOL or net capital
loss carryback,
• A prior year general business credit
release because of the release of the
foreign tax credit, or
• An NOL for a year for which you have
a 965(a) inclusion (a “965 year”).
The procedures for Form 1040X and
Form 1045 are different. The IRS isn't
required to process your Form 1040X
within 90 days. However, if we don't
process it within 6 months from the date
you file it, you can file suit in court. If the
IRS disallows your claim on Form
1040X and you disagree with that
determination, you must file suit no later
than 2 years after the date we disallow
it.

Additional Information

For more details on NOLs, see Pub.
536.

Specific Instructions
Address
P.O. box. Enter your box number only if
your post office doesn't deliver mail to
your street address.
Foreign address. If you have a foreign
address, enter the city name on the
appropriate line. Don't enter any other
information on that line, but also
complete the spaces below that line.
Don't abbreviate the country name.
Follow the country's practice for
entering the postal code and the name
of the province, county, or state.

Line 1b—Unused General
Business Credit

If you claim a tentative refund based on
the carryback of an unused general
business credit, attach a detailed
computation showing how you figured
the credit carryback and a
recomputation of the credit after you
apply the carryback. Generally, an
unused general business credit must be
carried back 1 year.
If you filed a joint return (or separate
return) for some but not all of the tax
years involved in figuring the unused
credit carryback, special rules apply to
figure the carryback. See the
Instructions for Form 3800.

Instructions for Form 1045 (2018)

Line 1c—Net Section 1256
Contracts Loss

An individual can elect to carry back a
net section 1256 contracts loss to each
of the 3 tax years preceding the loss
year. An estate or trust isn’t eligible to
make this election. To make the
election, check box D at the top of Form
6781. The amount which can be used in
any prior tax year can’t exceed the net
section 1256 contract gain in that year
and can’t increase or create an NOL for
that year. Reflect the carryback as a
reduction to your adjusted gross income
in the “After carryback” column on line
11. Attach to Form 1045 a copy of Form
6781 and Schedule D (Form 1040) for
the year of the net section 1256
contracts loss and an amended Form
6781 and an amended Schedule D
(Form 1040) for each carryback year.
For more details, see section 1212(c).

Line 9

If an NOL or net section 1256 contracts
loss carryback eliminates or reduces a
prior year foreign tax credit, you can’t
use Form 1045 to carry the released
foreign tax credits to earlier years. Also,
if the released foreign tax credits result
in the release of general business
credits, you can’t use Form 1045 to
carry the released general business
credits to earlier years. Instead, you
must file Form 1040X or other amended
return to claim refunds for those years.
For details, see Rev. Rul. 82-154,
1982-2 C.B. 394.

Lines 10 Through
32—Computation of
Decrease in Tax

Figure the amount of decrease, from the
carryback, in tax previously figured for
each tax year before the tax year of the
NOL, net capital loss, or unused credit.
The tax previously figured will be the tax
shown on the return as filed, increased
by any amounts assessed (or collected
without assessment) as deficiencies
before the date of the filing of the
application for a tentative carryback
adjustment, and decreased by any
amounts abated, credited, refunded, or
otherwise repaid prior to that date.
For purposes of the tentative
carryback adjustment, any items over
which you and the IRS are in
disagreement at the time of the filing of
the application shall be taken into
account in figuring the tax previously
figured only if, and to the extent that,
they were reported on the return or were
reflected, before the date of filing the
application, in any amounts assessed
Instructions for Form 1045 (2018)

(or collected without assessment) as
deficiencies or abated, credited,
refunded, or otherwise repaid.
After figuring the tax previously
determined, figure the decrease in tax
previously determined caused by the
carryback and any related adjustments
on the basis of the items of tax taken
into account in figuring the tax
previously determined. In figuring any
decrease caused by the carryback or
any related adjustment, items shall be
taken into account only to the extent that
they were reported on the return, or
were reflected, before the date of filing
the application for a tentative carryback
adjustment, in amounts assessed (or
collected without assessment) as
deficiencies or abated, credited,
refunded, or otherwise repaid.
If you and the IRS are in
disagreement as to the proper treatment
of any item, it shall be assumed, for
purposes of figuring the decrease in the
tax previously figured, that you reported
the item correctly unless, and to the
extent that, the disagreement has
resulted in the assessment of a
deficiency (or the collection of an
amount without an assessment) or the
allowing or making of an abatement,
credit, refund, or other repayment,
before the date of filing the application.
Use one pair of columns to enter
amounts before and after carryback for
each year to which the loss or credit is
being carried. Start with the earliest
carryback year. A net section 1256
contracts loss can be carried back 3
years. See the instructions for line 10,
later, to figure the tax years to which you
can carry an NOL. Use the remaining
pairs of columns for each consecutive
preceding tax year until the loss is fully
absorbed. Enter the ordinal number of
years the loss is being carried back and
the date the carryback year ends in the
spaces provided in the headings above
line 10 for each pair of columns.
Example. Your tax year is the 2018
calendar year and you are carrying a
farming loss back 2 years. You enter
“2nd” and “12/31/16” in the left column
heading in the spaces provided. The
column heading now reads “2nd
preceding tax year ended 12/31/16.” In
the middle pair of columns you enter
“1st” and “12/31/17.” The column
heading now reads “1st preceding tax
year ended 12/31/17.”
For each carryback year, enter in the
column labeled “Before carryback” the
amounts for the carryback year as
shown on your original or amended
return. If the amounts were previously
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adjusted by you or the IRS, enter the
amounts after adjustment.

Line 10—NOL Deduction
After Carryback

Use the following rules to figure the tax
years to which you must carry an NOL
shown on Schedule A, line 25. If an
NOL isn’t fully absorbed in a year to
which it is carried, complete Schedule B
to figure the amount to carry to the next
carryback year.
General rule. You generally can’t carry
back a loss. One exception applies to
farming losses. If you have a farming
loss and have not elected to relinquish
the carryback period, you must carry
back the entire NOL to the 2nd tax year
before the loss year. Any loss not used
in the 2nd preceding year is then carried
to the 1st preceding year. Any loss not
applied in the 2 preceding years can be
carried forward indefinitely.
Farming losses. To the extent the
NOL is a farming loss (defined earlier),
the carryback period is 2 years. The
loss deduction allowed for each year is
limited to the lesser of:
1. The farming loss, or
2. 80% of the taxable income of the
carryback year figured before taking into
account any NOL deduction.
Any such loss not applied in the 2
preceding tax years can be carried
forward to each tax year following the
tax year of loss.
Example. You operate a farming
business and incur an NOL of $50,000
for 2018. $35,000 of the NOL is from
income and deductions of your farming
business; $15,000 is from another
business. The $35,000 farming loss is
carried back 2 years to 2016; the
remainder of the loss (nonfarm loss)
isn’t eligible for carryback. The 2018
farming loss is the only NOL carried to
2016. The farming loss deduction for
2016 is limited to the lesser of:
1. $35,000, or
2. 80% of the taxable income of the
2016 year (figured without regard to any
NOL deduction).
Special rules. Special rules apply if
you filed a joint return (or a separate
return) for some but not all of the tax
years involved in figuring an NOL
carryback. For details, see Pub. 536.
Attach a computation showing how you
figured the carryback.

Line 11—Adjusted Gross
Income

Enter in the column labeled “Before
carryback” your adjusted gross income
(AGI) for the carryback year as shown
on your original or amended return.

Enter in the column labeled “After
carryback” your AGI refigured after you
apply the NOL or net section 1256
contracts loss carryback and after you
refigure any items of income and
deductions that are based on or limited
to a percentage of your AGI. Amounts to
refigure may include:
• The special allowance for passive
activity losses from rental real estate
activities,
• Taxable social security benefits,
• IRA deductions,
• The student loan interest deduction,
• The tuition and fees deduction,
• Excludable savings bond interest,
and
• The exclusion of amounts received
under an employer's adoption
assistance program.

Line 12—Deductions
Individuals. Enter in the column
labeled “Before carryback” for each
applicable carryback year the amount
shown (or as previously adjusted) on
Form 1040, line 40.
If you filed Form 1040NR, enter the
amount shown (or as previously
adjusted) on line 38.
If you filed Form 1040A, enter the
amount shown (or as previously
adjusted) on line 24.
If you filed Form 1040EZ and
checked any box on Form 1040EZ,
line 5, enter the amount shown (or as
previously adjusted) on line E of the
worksheet on the back of Form 1040EZ
(for 2013–2017, Worksheet for Line 5 —
Dependents Who Checked One or Both
Boxes). If you didn't check any box,
enter:
• $6,350 for 2017 ($12,700 if married),
• $6,300 for 2016 ($12,600 if married),
• $6,300 for 2015 ($12,600 if married),
• $6,200 for 2014 ($12,400 if married),
or
• $6,100 for 2013 ($12,200 if married).
After carryback. If you itemized
deductions in the carryback year, enter
in the column labeled “After carryback”
the total of your deductions after
refiguring any that are based on, or
limited to a percentage of, your AGI. To
refigure your deductions, use your
refigured AGI (Form 1045, line 11, using
the “After carryback” column). Amounts
you may have to refigure include:

• Medical expenses,
• Mortgage insurance premiums,
• Personal casualty and theft losses,

and
• Miscellaneous deductions subject to
the 2% limit.

!

Don't refigure your charitable
contributions deduction.

CAUTION

If you have an NOL, see Pub. 536 for
more information and examples.
If you didn't itemize deductions in the
carryback year, enter your standard
deduction for that year.

Line 14—Exemptions
Individuals. Enter in the column
labeled “Before carryback” for each
applicable carryback year the amount
shown (or as previously adjusted) on
Form 1040, line 42.
If you filed Form 1040NR, enter the
amount shown (or as previously
adjusted) on line 40.
If you filed Form 1040A, enter the
amount shown (or as previously
adjusted) on line 26.
If you filed Form 1040EZ and
checked the “You” or “Spouse” box on
Form 1040EZ, line 5, enter zero (or the
amount from line F of the 1040EZ
worksheet if married). If you didn't check
any box, enter:
• $4,050 for 2016 and 2017 ($8,100 if
married),
• $4,000 for 2015 ($8,000 if married),
• $3,950 for 2014 ($7,900 if married),
or
• $3,900 for 2013 ($7,800 if married).
After carryback. If your deduction
for personal exemptions in the
carryback year was limited based on
your AGI, enter in the column labeled
“After carryback” the deduction for
personal exemptions refigured using
your refigured AGI (Form 1045, line 11,
using the “After carryback” column).
Estates and trusts. Enter in the
columns labeled “Before carryback” and
“After carryback” for each applicable
carryback year the amount shown (or as
previously adjusted) on Form 1041,
line 20.

Line 16—Income Tax

Use your refigured taxable income
(Form 1045, line 15, using the “After
carryback” column) to refigure your tax
for each carryback year. Include any tax
from Form 4970, Tax on Accumulation
Distribution of Trusts, and Form 4972,
Tax on Lump-Sum Distributions. Attach
any schedule used to figure your tax or
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an explanation of the method used to
figure the tax and, if necessary, a
detailed computation.
For example, write “Tax Computation
Worksheet—2015” if this is the method
used for that year. You don't need to
attach a detailed computation of the tax
in this case.

Line 17—Excess Advance
Premium Tax Credit
Repayment

Advance payments of the premium tax
credit (APTC) may have been made in
2014, 2015, 2016, or 2017 to help pay
for your insurance coverage or that of
your spouse or dependent. If so,
complete Form 8962 using your
refigured household income to see if
you have excess APTC and must repay
the excess. If the advance payments
were more than the refigured premium
tax credits, enter the refigured amount
from line 29 of your 2014, 2015, 2016,
or 2017 Form 8962, in the column
labeled “After carryback” for the
applicable year.
If your refigured household

TIP income is less than 100% of the

federal poverty line for 2014,
2015, 2016, or 2017, you can still claim
the premium tax credit if you satisfy the
requirements under Estimated
household income at least 100% of the
federal poverty line in the 2014, 2015,
2016, or 2017 Instructions for Form
8962.

Line 18—Alternative
Minimum Tax

The carryback of an NOL or net section
1256 contracts loss may affect or cause
you to owe AMT. Individuals use Form
6251 to figure this tax. Estates and
trusts use Schedule I (Form 1041).
See the AMT instructions for the
carryback year.

Line 20—General
Business Credit

Enter in the column labeled “After
carryback” for each affected carryback
year the total of the refigured general
business credits, using Form 3800 (or
using Forms 3800, 5884, 6478, 8586,
8835 (Part II), 8844, or 8846, if
applicable, to refigure the general
business credits for years before 2008).
If an NOL or net section 1256
contracts loss carryback eliminates or
reduces a general business credit in an
earlier year, you may be able to carry
back the released credit 1 year. See
Instructions for Form 1045 (2018)

section 39 and the Instructions for Form
3800 for more details on general
business credit carrybacks.

exemptions or figuring a shared
responsibility payment, see the
Instructions for Form 8965.

Line 21—Net Premium Tax
Credit

Line 29—Other Taxes

If you claimed a premium tax credit in
2014, 2015, 2016, or 2017, complete a
new Form 8962 using your refigured
household income. Enter your refigured
premium tax credit in the column
labeled “After carryback” for 2014,
2015, 2016, or 2017.

Line 22—Other Credits

See your tax return for the carryback
year for any additional credits such as
the earned income credit, credit for child
and dependent care expenses, child tax
credit, education credits, foreign tax
credit, retirement savings contributions
credit, etc., that will apply in that year. If
you make an entry on this line, identify
the credit(s) claimed.

After carryback. Refigure any credits
included on this line that are based on
or limited by your AGI, modified AGI
(MAGI), or tax liability. Use your
refigured AGI, MAGI, or tax liability to
refigure your credits for each carryback
year.

Line 25—
Self-Employment Tax

Don't adjust self-employment tax
because of any carryback.

Line 26—Additional
Medicare Tax

Don't adjust Additional Medicare Tax
because of any carryback.

Line 27—Net Investment
Income Tax

Enter in the column labeled “After
carryback” for each affected carryback
year any refigured Net Investment
Income Tax (NIIT) using Form 8960 for
the applicable carryback year. See
section 1411 and the related regulations
for information on the use of an NOL for
NIIT purposes.

Line 28—Health Care:
Individual Responsibility

Enter in the column labeled “After
carryback” for each affected carryback
year any refigured shared responsibility
payment using the Shared
Responsibility Payment Worksheet in
the Instructions for Form 8965 for the
applicable carryback year. For
information on health care coverage

Instructions for Form 1045 (2018)

See your tax return for the carryback
year for any other taxes not mentioned
above, such as recapture taxes, tax on
an IRA, etc., that will apply in that year.
If you make an entry on this line, identify
the taxes that apply.

Line 33—Overpayment of
Tax Under Section 1341(b)
(1)
If you apply for a tentative refund based
on an overpayment of tax under section
1341(b)(1), enter it on this line. Also,
attach a computation showing the
information required by Regulations
section 5.6411-1(d).

Signature
Individuals. Sign and date Form 1045.
If Form 1045 is filed jointly, both
spouses must sign.
Estates. All executors or administrators
must sign and date Form 1045.
Trusts. The fiduciary or an authorized
representative must sign and date Form
1045.

Schedule A—NOL

Complete and file this schedule to figure
the amount of the NOL that is available
for carryback or carryforward.

Line 1

For individuals, subtract your standard
deduction or itemized deductions (Form
1040, line 8; or Form 1040NR, line 37)
from your AGI (Form 1040, line 7; or
Form 1040NR, line 35) and enter it here.
For estates and trusts, see the
instructions for Form 1041, line 22, for
more information about taxable income
and NOLs.

Line 2—Nonbusiness Capital
Losses

Don't include on this line any section
1202 exclusion amounts (even if
entered as a loss on Schedule D (Form
1041)).

Line 6—Nonbusiness
Deductions

Enter as a positive number deductions
that aren't connected with a trade or
business. They include:
• IRA deductions;
• Health savings account deduction;
• Archer MSA deduction;
-5-

• Deductions for payments on behalf of
a self-employed individual to a SEP,
SIMPLE, or qualified plan;
• Alimony paid;
• Most itemized deductions (except for
casualty and theft losses resulting from
a federally declared disaster and state
income tax on trade or business
income); and
• Standard deduction.
Don't include on line 6 any business
deductions. These are deductions that
are connected with a trade or business.
They include:
• State income tax on income from a
trade or business (including wages,
salary, and unemployment
compensation);
• Educator expenses;
• Moving expenses;
• The deduction for the deductible part
of self-employment health insurance
and the deduction for the deductible
part of self-employment tax;
• Domestic production activities
deduction;
• Rental losses;
• Loss on the sale or exchange of
business real estate or depreciable
property;
• Your share of a business loss from a
partnership or an S corporation;
• Ordinary loss on the sale or
exchange of section 1244 (small
business) stock;
• Ordinary loss on the sale or
exchange of stock in a small business
investment company operating under
the Small Business Investment Act of
1958;
• Loss from the sale of accounts
receivable if such accounts arose under
the accrual method of accounting; and
• If you itemized your deductions,
casualty or theft losses resulting from a
federally declared disaster.

Line 7—Nonbusiness Income
Other Than Capital Gains

Enter income that isn't from a trade or
business. Examples are ordinary
dividends, annuities, and interest on
investments.
Don't enter business income on
line 7. This is income from a trade or
business and includes:
• Salaries and wages,
• Self-employment income,
• Unemployment compensation,
• Rental income,
• Gain on the sale or exchange of
business real estate or depreciable
property, and
• Your share of business income from a
partnership or an S corporation.

For more details on business and
nonbusiness income and deductions,
see Pub. 536.

Line 17—Section 1202
Exclusion

Enter as a positive number any gain
excluded under section 1202 on the
sale or exchange of qualified small
business stock.

Line 23—Domestic Production
Activities Deduction (DPAD)

The TCJA repealed the DPAD for tax
years beginning after 2017. However, in
limited circumstances you may still
claim a DPAD in 2018. See Form 8903
and its instructions. If you do claim a
DPAD, enter the amount from Form
8903, line 25, as a positive number.

Schedule B—NOL
Carryover

Complete and file this schedule to figure
the NOL deduction for each carryback
year and the amount to be carried
forward, if not fully absorbed. Make the
same entries in each column heading as
on page 1 of Form 1045 (see the
instructions for Lines 10 Through 32,
earlier).
In most cases, if an NOL is more than
the modified taxable income for the
earliest year to which it is carried, you
must file Schedule B to figure the
amount of the NOL to be carried to the
next tax year. The amount of the
carryback is in most cases the excess, if
any, of the NOL carryback over the
modified taxable income for that earlier
year. Modified taxable income is the
amount figured on line 9 of Schedule B
or, if less, 80% of taxable income
figured for that year before taking into
account any NOL deduction.
If you carry two or more NOLs to
a tax year, figure your modified
CAUTION taxable income by deducting
the NOLs in the order in which they
were incurred. First, deduct the NOL
from the earliest year, then the NOL
from the next earliest year, etc. After
you deduct each NOL, there will be a
new, smaller, modified taxable income
to compare to any remaining NOL.

!

Line 2

Don't take into account on this line any
NOL carryback from 2018 or later.
However, do take into account NOLs
that occurred in tax years before 2018
and are otherwise allowable as
carrybacks or carryforwards.

Note. If your taxable income is shown
as zero on your tax return (or as
previously adjusted) for any carryback
year, refigure it without limiting the result
to zero, and enter it on line 2 as a
negative number.

Line 3—Net Capital Loss
Deduction
Individuals. Enter as a positive
number the amount, if any, shown (or as
previously adjusted) on Schedule D
(Form 1040), line 21.
Estates and trusts. Enter as a positive
number the amount, if any, shown (or as
previously adjusted) on Schedule D
(Form 1041), line 16.

Line 4—Section 1202 Exclusion

Enter as a positive number any gain
excluded under section 1202 on the
sale or exchange of qualified small
business stock.

Line 5—Domestic Production
Activities Deduction (DPAD)

Enter as a positive number the amount
of any DPAD claimed on your return.

Line 6—Adjustments to
Adjusted Gross Income

If you entered an amount on line 3 or
line 4, you must refigure certain income
and deductions based on AGI. These
include:
• The special allowance for passive
activity losses from rental real estate
activities,
• Taxable social security benefits,
• IRA deductions,
• Excludable savings bond interest,
• The exclusion of amounts received
under an employer's adoption
assistance program,
• The student loan interest deduction,
and
• The tuition and fees deduction.
For purposes of figuring the
adjustment to each of these items, your
AGI is increased by the total of the
amounts on line 3 and line 4. Don't take
into account any NOL carryback from
2018 or later.
In most cases, figure the adjustment
to each item of income or deduction in
the order listed above and, when
figuring the adjustment to each
subsequent item, increase or decrease
AGI by the total adjustments you figured
for the previous items. However, a
special rule applies if you received
social security benefits and deducted
IRA contributions. Use the worksheets
in Pub. 590-A, Contributions to
Individual Retirement Arrangements
(IRAs), to refigure your taxable social
-6-

security benefits and IRA deductions
under the special rule.
Enter on line 6 the total adjustments
made to the listed items. Attach a
computation showing how you figured
the adjustments.

Line 7—Adjustment to Itemized
Deductions
Individuals. Skip this line if, for the
applicable carryback year:
• You didn't itemize deductions; or
• The amounts on Schedule B, lines 3
through 5, are zero.
Otherwise, complete lines 11 through
38 and enter on line 7 the amount from
line 38 (or, if applicable, line 12 of the
Itemized Deductions Limitation
Worksheet).
Estates and trusts. Refigure the
miscellaneous itemized deductions
shown (or as previously adjusted) on
Form 1041, line 15c, and any casualty
or theft losses shown (or as previously
adjusted) on Form 4684, Casualties and
Thefts, line 18, by substituting MAGI
(see below) for the AGI of the estate or
trust.
Subtract the refigured deductions
and losses from the deductions and
losses previously shown, and enter the
difference on line 7.
Modified AGI for estates and
trusts. For purposes of figuring
miscellaneous itemized deductions
subject to the 2% limit, figure MAGI by
adding the following amounts to the AGI
previously used to figure these
deductions.
• The total of the amounts from lines 3
through 6 of Form 1045, Schedule B.
• The exemption amount shown (or as
previously adjusted) on Form 1041,
line 20.
• The income distribution deduction
shown (or as previously adjusted) on
Form 1041, line 18.
For purposes of figuring casualty or
theft losses, figure MAGI by adding the
total of the amounts from lines 3 through
6 of Form 1045, Schedule B, to the AGI
previously used to figure these losses.

Line 9—Modified Taxable
Income

If 80% of taxable income figured without
any NOL deduction for the carryback
year is less than the amount figured for
line 9, enter that amount on line 9.

Line 10—NOL Carryover

Generally, subtract line 9 from line 1. If
zero or less, enter -0-. After completing
all applicable columns, carry forward to
2019 the amount, if any, on line 10 of
Instructions for Form 1045 (2018)

the column for the 1st preceding tax
year.

$100,000 ($50,000 if married filing
separately)?

Line 20—Refigured Mortgage
Insurance Premiums

Yes. Your deduction is limited.
Refigure your deduction using the
Mortgage Insurance Premiums
Deduction Worksheet.

Is your MAGI from Form 1045,
Schedule B, line 13, more than

No. Your deduction isn't limited.
Enter the amount from line 19 on line 20
and enter -0- on line 21.

Mortgage Insurance Premiums Deduction Worksheet—Line 20
Before you begin:

Keep for Your Records

See the instructions for line 20 to see if you must use this worksheet to refigure
your deduction.

1. Enter the total premiums you paid in the carryback year for mortgage
insurance for a contract issued after December 31, 2006 . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the amount from Form 1045, Schedule B, line 13 . . . . . . . 2.
3. Enter $100,000 ($50,000 if married filing separately) . . . . . . . . . 3.
4. Is the amount on line 2 more than the amount on line 3?
No. Your deduction isn't limited. Enter the amount from
line 19 on line 20 of Form 1045, Schedule B, and
enter -0- on line 21. Don't complete the rest of this
worksheet.
Yes. Subtract line 3 from line 2. If the result isn't a multiple
of $1,000 ($500 if married filing separately), increase
it to the next multiple of $1,000 ($500 if married filing
separately). For example, increase $425 to $1,000,
increase $2,025 to $3,000; or if married filing
separately, increase $425 to $500, increase $2,025 to
$2,500, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Divide line 4 by $10,000 ($5,000 if married filing separately). Enter the result
as a decimal. If the result is 1.0 or more, enter 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Multiply line 1 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Refigured mortgage insurance premiums deduction. Subtract line 6
from line 1. Enter the result here and on Form 1045, Schedule B, line 20 . . . . . 7.

Instructions for Form 1045 (2018)

-7-

Itemized Deductions Limitation Worksheet — See the instructions for
line 38.
Enter applicable carryback year . . . . . . . . . . .

▶

1.

Add the amounts from Form 1045, Schedule B, lines 17, 20,
26, 31, and 36; plus the total of “Taxes You Paid,” “Interest
You Paid” except “Mortgage insurance premiums,” and
“Other Miscellaneous Deductions” deducted and included
on the Schedule A of your return(s) for the carryback year(s)
or as previously adjusted . . . . . . . . . . . . . . . . . . . . . . . .

2.

Add the amounts from Form 1045, Schedule B, lines 17 and
31 and any amount included on Form 1045, Schedule B,
line 26, that you elected to treat as qualified contributions for
relief efforts in a Midwestern disaster area; plus the amounts
of "Investment interest" and any gambling, casualty, and
theft losses deducted and included on the Schedule A of
your return(s) for the carryback year(s) or as previously
adjusted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

Subtract line 2 from line 1. If the result is zero or less, stop
here; combine the amounts from Form 1045, Schedule B,
lines 18, 21, 27, 32, and 37, and enter the result on line 38
and line 7 of Form 1045, Schedule B . . . . . . . . . . . . . . . .

4.

Multiply line 3 by 80% (0.80) . . . . . . . . . . . . . . . . . . . . . .

5.

Enter the amount from Form 1045, Schedule B,
line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

Keep for Your Records

Enter:

• $300,000 for joint filers and qualifying

widow(er); $275,000 for head of
household; $250,000 for unmarried (and
neither head of household nor qualifying
widow(er)); and $150,000 for married
filing separately for 2013;
• $305,050 for joint filers and qualifying
widow(er); $279,650 for head of
household; $254,200 for unmarried (and
neither head of household nor qualifying
widow(er)); and $152,525 for married
filing separately for 2014;
• $309,900 for joint filers and qualifying
widow(er); $284,050 for head of
household; $258,250 for unmarried (and
neither head of household nor qualifying
widow(er)); and $154,950 for married
filing separately for 2015;
• $311,300 for joint filers and qualifying
widow(er); $285,350 for head of
household; $259,400 for unmarried (and
neither head of household nor qualifying
widow(er)); and $155,650 for married
filing separately for 2016; or
• $313,800 for joint filers and qualifying
widow(er); $287,650 for head of
household; $261,500 for unmarried (and
neither head of household nor qualifying
widow(er)); and $156,900 for married
filing separately for 2017.
7.

Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . .

8.

Multiply line 7 by 3% (0.03) . . . . . . . . . . . . . . . . . . . . . . .

9.

Enter the smaller of line 4 or line 8 . . . . . . . . . . . . . . . . .

10.

Total Itemized Deductions entered on your Schedule A for
the carryback year or as previously adjusted . . . . . . . . . .

11.

Subtract line 9 from line 1 . . . . . . . . . . . . . . . . . . . . . . .

12.

Subtract line 11 from line 10. Enter the difference here and
on line 7 of Form 1045, Schedule B . . . . . . . . . . . . . . . . .

-8-

Instructions for Form 1045 (2018)

Line 26—Refigured Charitable
Contributions

Refigure your charitable contributions
using line 24 as your AGI unless, for any
preceding tax year:
• You entered an amount other than
zero on line 23; and
• You had any items of income or
deductions based on AGI, which are
listed in the instructions for line 6 of
Schedule B.
If you can't use the amount from
line 24 as your AGI, figure your AGI as
follows.
1. Figure the adjustment to each
item of income or deduction in the same
manner as explained in the instructions
for line 6 of Schedule B, except don't
take into account any NOL carryback
when figuring AGI. Attach a computation
showing how you figured the
adjustments.
2. Add lines 3, 4, 5, 11, and 23 of
Schedule B to the total adjustments you
figured in (1) above. Use the result as
your AGI to refigure charitable
contributions.
For NOL carryover purposes, you
must reduce any charitable
contributions carryover to the extent that
the NOL carryover on line 10 is
increased by any adjustment to
charitable contributions.

Line 38

Complete the Itemized Deductions
Limitation Worksheet if line 22 of
Schedule B for any carryback year is
more than the following.
• $300,000 for joint filers and qualifying
widow(er); $275,000 for head of
household; $250,000 for unmarried (and
neither head of household nor qualifying
widow(er)); and $150,000 for married
filing separately for 2013.
• $305,050 for joint filers and qualifying
widow(er); $279,650 for head of
household; $254,200 for unmarried (and
neither head of household nor qualifying
widow(er)); and $152,525 for married
filing separately for 2014.
• $309,900 for joint filers and qualifying
widow(er); $284,050 for head of
household; $258,250 for unmarried (and
neither head of household nor qualifying
widow(er)); and $154,950 for married
filing separately for 2015.
• $311,300 for joint filers and qualifying
widow(er); $285,350 for head of

Instructions for Form 1045 (2018)

household; $259,400 for unmarried (and
neither head of household nor qualifying
widow(er)); and $155,650 for married
filing separately for 2016.
• $313,800 for joint filers and qualifying
widow(er); $287,650 for head of
household; $261,500 for unmarried (and
neither head of household nor qualifying
widow(er)); and $156,900 for married
filing separately for 2017.
Only complete a column for each
year that meets the above
requirements.
Note. The itemized deduction limitation
applies only to years after 2012.
Disclosure, Privacy Act, and Paperwork Reduction Act Notice. We ask
for the information on this form to carry
out the Internal Revenue laws of the
United States. You may use Form 1045
to apply under section 6411 for a quick
refund of tax for a prior year affected by
certain carrybacks. You are not required
to apply for this quick refund; however, if
you do, you are required to give us the
requested information. We need it to
ensure that you are complying with
these laws and to allow us to figure and
collect the right amount of tax. Section
6109 requires that you disclose your
identification number. If you do not
provide the information requested, we
may be unable to process this
application. Providing false or fraudulent
information may subject you to
penalties.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records
relating to a form or its instructions must
be retained as long as their contents
may become material in the
administration of any Internal Revenue
law.
Generally, tax returns and return
information are confidential, as stated in
section 6103. However, section 6103
allows or requires the Internal Revenue
Service to disclose or give the
information shown on your tax return to
others as described in the Internal
Revenue Code. For example, we may
disclose your tax information to the
Department of Justice, to enforce the
tax laws, both civil and criminal, and to
cities, states, the District of Columbia,

-9-

and U.S. commonwealths or
possessions to carry out their tax laws.
We may disclose your tax information to
the Department of Treasury and
contractors for tax administration
purposes; and to other persons as
necessary to obtain information which
we cannot get in any other way in order
to figure the amount of or to collect the
tax you owe. We may disclose your tax
information to the Comptroller General
of the United States to permit the
Comptroller General to review the
Internal Revenue Service. We may
disclose your tax information to
Committees of Congress; federal, state,
and local child support agencies; and to
other federal agencies for the purposes
of determining entitlement for benefits or
the eligibility for and the repayment of
loans. We may also disclose this
information to other countries under a
tax treaty, to federal and state agencies
to enforce federal nontax criminal laws,
or to federal law enforcement and
intelligence agencies to combat
terrorism.
The time needed to complete and file
this form will vary depending on
individual circumstances. The estimated
burden for individual taxpayers filing this
form is approved under OMB control
number 1545-0074 and is included in
the estimates shown in the instructions
for their individual income tax return.
The estimated burden for all other
taxpayers who file this form is shown
below.
Recordkeeping . . . . . .
Learning about the law or
the form . . . . . . . . . .
Preparing the form . . .
Copying, assembling, and
sending the form to the
IRS . . . . . . . . . . . . .

9 hr., 18 min.
9 hr., 50 min.
10 hr., 19 min.

1 hr., 3 min.

If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form
simpler, we would be happy to hear
from you. You can send us comments
from IRS.gov/FormComments. Or you
can write to the Internal Revenue
Service, Tax Forms and Publications
Division, 1111 Constitution Ave. NW,
IR-6526, Washington, DC 20224. Don't
send the form to this office.