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A tax return including Form 1045 cannot be filed electronically.

If there is any uncertainty about the interpretation of an entry, Sure-Fire does not calculate it.

This application is filed to carry back the following:

 

net operating loss (NOL)

unused general business credit can be carried back only one year

net section 1256 contracts loss.

 

If you have a net operating loss or unused credits and choose to carry them back to the third preceding year, you will use this form. This form is activated when you fill in the date the current year tax return was filed. When you fill in this date, Worksheet 1 and, if applicable, Worksheet 2, will activate to see if you have a carryover to the second or first preceding years.

Waiving the carryback period

A person can elect to carry an NOL forward only, instead of first carrying it back.

A person must file Form 1045 within 1 year after the end of the year in which an NOL, unused credit, a net section 1256 contract loss, or claim of right adjustments arose.

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. A person generally must file an amended return no later than 3 years after the due date of the return for the applicable year.

Line 1b

If you claim a tentative refund based on the carryback of unused general business credit, enter the amount of said credit.

Line 1c

A section 1256 contract is any regulated futures contract, foreign currency contract, nonequity option, dealer equity option, or dealer securities futures contract. See IRS Publication 550 for more information.

Line 9

If an NOL or net section 1256 contracts loss carryback eliminates or reduces a prior year foreign tax credit, you cannot use this form to carry the released foreign tax credits to earlier years. See the IRS instructions for more information.

Line 10

Column (b) calculates from Form 1045 line 1a (which calculates from 1045 Schedule A, line 25). Column (d) and (f) calculate from 1045 Worksheet 1 (Schedule B), line 1, column (b) or (c).

Line 11

Enter in the column labeled "Before" the taxpayer's adjusted gross income for the carryback year as shown on the original or amended return.

Column (b) is the amount on line 11, column (a) minus the amount on line 10, column (b). Columns (d) and (f) calculate the same way using the amounts in that section.

Line 12

Columns (a), (c), and (e) are manual entries from the prior year returns (either the standard deduction or itemized deductions). Columns (b), (d), and (f) is also based on the prior year amounts but are refigured for any amounts limited by adjusted gross income. The line numbers for prior years can be found in the IRS instructions for Form 1045.

If the taxpayer did not itemize deductions in the carryback year, enter his or her standard deductions for that year.

Line 14

Columns (a), (c), and (e) are manual entries from prior year returns. The line numbers for prior years are in the IRS instructions for Form 1045. Sure-Fire calculates columns (b), (d), and (f). This amount is the same as the amount in column (a), (c), or (e) unless the exemption was limited due to adjusted gross income.

Line 16

Columns (a), (c), and (e) are manual entries from prior year returns. Information to find this is in the IRS instructions for Form 1045. Sure-Fire calculates columns (b), (d), and (f) based on the taxable income shown on line 15, Column (b), (d), or (f) and the tax table for the year listed at the top of the column.

Line 17

Press Shift+F1 to see the IRS instructions for details.

Line 20

Enter 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.

Line 23

Do not adjust the self-employment tax because of any carryback.

Line 24

Enter any other taxes such as recapture taxes, tax on IRA, etc., that will apply in that year.

Line 28

If the taxpayer applies for a tentative refund based on an overpayment of tax under section 1341(b)(1), enter it on this line.