Georgia Net Operating Loss Adjustment

Net Operating Loss Adjustment
TSD_Application_for_Net_Operating_Loss_Adjustment_For_Other_Than_Corporations_500NOL
Georgia Form

500-NOL

Net Operating Loss Adjustment
For Individuals and Fiduciaries (Rev. 12/31/20)

Page 1
ATTACH A COMPLETE COPY OF YOUR FEDERAL RETURN FOR THE LOSS YEAR

YOUR SSN OR FEIN
DEPARTMENT USE ONLY

SPOUSE’S SSN

YOUR FIRST NAME

MI

LAST NAME

SUFFIX

SPOUSE’S FIRST NAME

MI

LAST NAME

SUFFIX

CHECK IF ADDRESS CHANGED

ADDRESS (NUMBER AND STREET or P.O. BOX) (Use 2nd address line for Apt, Suite or Building Number)

CITY

STATE

ZIP CODE

(COUNTRY IF FOREIGN)

TAXABLE YEAR OF NET OPERATING LOSS: CALENDAR YEAR ____________________:
OR OTHER YEAR BEGINNING ____________________

AND ENDING

____________________

NET OPERATING LOSS: $ _____________________

PLEASE ATTACH A COPY OF YOUR FEDERAL APPLICATION FOR NOL ADJUSTMENT, PART YEAR AND NONRESIDENTS SEE INSTRUCTIONS ON PAGE 4.

TYPE OF LOSS:

NORMAL
(2) YEAR

PORTION:

$ ________________

CASUALTY LOSS

(2) YEAR

(3) YEAR
$ ________________

IS THE LOSS ONLY BEING CARRIED FORWARD? YES

FARM LOSS

NO

$ ________________

FARM LOSS
(5) YEAR
$ ________________

Form 500-NOL is still required, see instructions.

OTHER
(EXPLAIN IN ATTACHMENT)
$ ___________________

Georgia Form

500-NOL

TAXPAYER’S FEIN

Net Operating Loss Adjustment
For Individuals and Fiduciaries

Page 2

TAX YEAR:

___________________ PRECEDING TAX

___________________ PRECEDING TAX

__________________ PRECEDING TAX

YEAR ENDED ______________________

YEAR ENDED ______________________

YEAR ENDED ______________________

RESIDENCY STATUS
FILING STATUS
Computation of overpayments

(a) Return as filed or
liability as last
determined

(b) Liability after
application of
carry-back

(c) Return as filed or
liability as last
determined

(d) Liability after
application of
carry-back

(e) Return as filed or
liability as last
determined

(f) Liability after application
of
carry-back

1. Federal adjusted gross income
(exclude Federal NOL)
2. Georgia adjustments. See Page 5
of the instructions
3. Net operating loss. See Page 5
for 80% rule and other instructions
4. Georgia adjusted gross income
Net total of Lines 1, 2 and 3.
5. Deductions. See Page 5 of the
instructions.
6. Subtract Line 5 from Line 4
7. Exemptions. See Page 5 of instructions.
8. Taxable Income. Subtract Line 7
from Line 6.
9. Income Tax.
10. Credits. See Page 5 of the instructions.
11. Tax after credits. Subtract Line 10
from Line 9.
12. Enter Line 11 column (b) (d) (f),
respectively.
13. Decrease in tax. Subtract Line 12
from Line 11.

Mailing Address:

Georgia Department of Revenue Processing Center, PO Box 740318, Atlanta, GA. 30374-0318

Under penalty of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief it is true, correct and complete.
Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Taxpayer’s Signature

Taxpayer’s Spouse Signature

Date

Date

Taxpayer’s Phone Number

Check the box to authorize the Georgia Department of Revenue to
discuss the contents of this return with the named preparer.

By providing my e-mail address I am authorizing the Georgia Department of Revenue to electronically notify me at the below e-mail address regarding any updates to
my account(s).

Taxpayer’s E-mail Address

Signature of Preparer Other Than Taxpayer

Preparer’s Phone Number

Name of Preparer Other Than Taxpayer

Preparer’s FEIN

Preparer’s Firm Name

Preparer’s SSN/PTIN/SIDN

Georgia Form

500-NOL

COMPUTATION OF NET
OPERATING LOSS - LOSS YEAR

TAXPAYER’S FEIN

Page 3

PAR T YEAR AND NONRESIDENTS, SEE INSTRUCTIONS ON PAGE 4
1.

Adjusted gross income, Line 8, Page 2 of form 500 ........................................................................................

1.
_______________________

2.

Line 9 adjustments. ......................................................................................................... ................................

2.

3.

Deductions (Applies to individuals only). ..........................................................................................................
a. Enter amount of your Standard or Itemized Deductions, Line 11c or Line 12 of form 500. ........................
b. Personal exemption, Line 14c of form 500. ................................................................................................

4.

Total (Lines 3a and 3b) .....................................................................................................................................

5.

Taxable income. Total of Line 1 and Line 2 less Line 4 ...................................................................................

6.

Exemptions claimed, Line 14c of form 500 ......................................................................................................

7.

Nonbusiness capital losses before limitation. Enter as a positive number ................

7.
_______________________

8.

Total nonbusiness capital gains (without regard to any I.R.C section 1202 exclusion)

9.

If Line 7 is more than Line 8, enter the difference; otherwise, enter -0- ....................

8.
_______________________
9.
_______________________

10. If Line 8 is more than Line 7, enter the difference; otherwise, enter -0- ....................

3a.
_______________________
3b.
_______________________
4.
5.
6.

10.

11. Enter either your standard deduction or itemized deductions
less casualty, 2106 deductions, and state and local
11.
income taxes ..................................................................
12. Contributions to self-employed pension plan or Keogh

12.
_______________________

13. Alimony (paid) .............................................................

13.
_______________________

14. Forfeited interest/penalty on early withdrawal ............
15. Contribution to an IRA ................................................
16. Other (specify) ............................................................

14.
_______________________
15.
_______________________
16.

17. Total nonbusiness deductions (Lines 11 through 16)
18. Dividend income .........................................................
19. Interest income ...........................................................
...
20. Alimony/pensions/annuities ........................................

17.
18.
_______________________
19.
_______________________
20.

21. GA adjustment for retirement exclusion, U.S. interest,
non-Georgia municipal interest, etc (See Page 4).......
22. Other (specify) ............................................................

21.
_______________________
22.

23. Total nonbusiness income other than capital gains (Lines 18 through 22) ..............
24. Add Lines 10 and 23 .................................................................................................

23.
_______________________
24.
25.

25. If Line 17 is more than Line 24, enter the difference; otherwise enter -0- .................
26. If Line 24 is more than Line 17, enter the difference; otherwise enter -0-.
Do not enter more than Line 10 ................................................................................

26.
_______________________

27. Total business capital losses before limitation. Enter as a positive number ..............

27.
_______________________

28. Total business capital gains (without regard to I.R.C. section 1202 exclusion) .........

28.
_______________________

29. Add Lines 26 and 28 .................................................................................................

29.
_______________________
30.
_______________________

30. If Line 27 is more than Line 29, enter the difference; otherwise enter -0- .................
31. Add Lines 9 and 30. ..................................................................................................
32. Enter your net capital loss before the $3,000 federal limitation, if any. Enter as a
positive number. If you do not have this loss (and do not have an I.R.C. section
1202 exclusion) skip Lines 32 through 37 and enter on Line 38 the amount from
Line 31 .......................................................................................................................

31.

32.

33. I.R.C. section 1202 exclusion (50% exclusion for gain from certain small business
stock). Enter as a positive number. ..........................................................................
34. Subtract Line 33 from Line 32. If zero or less enter -0- ............................................
35. Enter your net capital loss after the $3,000 Federal limitation.
Enter as a positive number ........................................................................................
36. If Line 34 is more than Line 35, enter the difference; otherwise enter -0- ..................

33.
34.
35.
_______________________
36.

37. If Line 35 is more than Line 34, enter the difference; otherwise enter -0- ........................................................
38. Subtract Line 36 from Line 31. If zero or less, enter -0- ..................................................................................
39. Previous net operating loss claimed. Enter as a positive number ...................................................................

37.
_______________________
38.
_______________________
39.

40. Add Lines 6, 25, 33, 37, 38, 39 ...................................................................................................................................................................................
41. Loss amount. Combine Lines 5 and 40. If the result is less than zero, enter it here. If the loss is being carried back to a part year or nonresident return,
see instructions on Page 4. If the result is zero or more, you do not have a normal net operating loss. ...............................................................................
42. IRC Section 461(1) loss eligible to be carried forward only (enter as negative)..........................................................................................................

40.
_______________________
41.
_______________________
42.
_______________________

43. Total Net Operating Loss. Combine Lines 41 (if Line 41 is a negative) and Line 42. Enter on Page 1..................................................................... 43.

Georgia Form

Page 4

500-NOL

TAXPAYER’S FEIN

NET OPERATING LOSS CARRYOVER
Complete if applicable. See page 5 for instructions.
Complete one column before going
to the next column. Start with the earliest
carryback year.

___________________ PRECEDING TAX

___________________ PRECEDING TAX

__________________ PRECEDING TAX

YEAR ENDED ______________________

YEAR ENDED ______________________

YEAR ENDED ______________________

1. Net operating loss deduction .....
2. Taxable income before N.O.L.
carryback .........................................
3. Net capital loss deduction. Enter
as a positive number........................
4. I.R.C. section 1202 exclusion.
Enter as a positive number..............
5. Adjustments to adjusted gross
income ...........................................
6. Adjustments to itemized deductions
7. Exemptions ................................
8. Modified taxable income. Combine
Lines 2 through 7. If zero or less,
enter -0- ..............................................
9. Net operating loss carryover. Line
1 less Line 8. If zero or less, enter -0-

PART YEAR AND NONRESIDENTS

Complete if applicable

Year_________ Use a separate schedule for all applicable years.

Column A
Total

Column B
Non Georgia

Column C
Georgia

1. Georgia Adjusted Gross Income (exclude Federal NOL).
See instructions below.....................................................
2. Georgia NOL. See instructions below............................
3. Adjusted AGI for NOL purposes...................................
4. Percentage. Line 3, column C divided by column A.
See instructions below.....................................................
5. Itemized or standard deduction. See instructions below.
6. Personal exemptions.......................................................
7. Total deductions and exemptions; add Lines 5 & 6..........
8. Line 4 percentage times Line 7........................................
9. Adjusted taxable income, column C, Line 3 less Line 8,
enter here and on taxable income Line 8 of Page 2.......

Part Year and Nonresident schedule instructions. (Use if carrying the loss to a part year or nonresident return regardless of
whether the loss year is a part year or nonresident return.)

1. Lines 1 and 5, enter the amounts, after the adjustments that are required by I.R.C. Section 172 if any apply, for the year the loss is being carried to.
2. Line 2 column A and C, enter loss from Page 3, Line 41 or from Page 4, Line 9 of the net operating loss carryover schedule.
3. Line 4, if Georgia AGI is zero or negative, the percentage is zero. If the adjusted Federal AGI is zero or negative, the Line 4 percentage is considered
to be 100%. This also applies if both adjusted Federal AGI and Georgia AGI are zero or negative. In this case, the taxpayer is entitled to the full exemption amount and deductions.

Additional instructions for part year and nonresidents.

1. 500-NOL Page 2. Lines 1 through 7 should not be completed for any years for which a part year or nonresident return was filed. Instead the part year
and nonresident schedule above should be completed.
2. 500-NOL Page 3 must be completed. If the loss year is a part year or nonresident year for Lines 3a, 3b, 6, and 11, compute the amount and then multiply
it by the percentage of Georgia AGI to adjusted Federal AGI on schedule 3 of the loss year return. For example, if you have one exemption, multiply
$2,700 by the percentage on schedule 3 of the loss year return. The other Lines on Page 3 that pertain to Georgia source income should also be filled in.
3. 500-NOL Page 4. net operating loss carryover schedule. If any years on this schedule are part year or nonresident years, for Lines 6 and 7, compute the
amount and then multiply it by the percentage on Line 4 of the part year and nonresident schedule. For example, if you have one exemption, multiply
$2,700 by the percentage on Line 4 of the above schedule. The other Lines on the net operating loss carryover schedule that pertain to Georgia source
income should also be filled in.

500- NOL (Rev. 12/31/20)
General Instructions
A net operating loss carryback adjustment may be filed on this form
by an individual or fiduciary taxpayer that desires a refund of taxes afforded by
carryback of a net operating loss. This form must be filed no later than 3
years from the due date of the loss year income tax return, including any
extensions which have been granted. Form 500X should not be used to
carryback a NOL Form 500-NOL must also be filed by the due date
(including extensions) of the loss year return, when the taxpayer only carries
the loss forward. This is necessary so the NOL can be established in the
Department’s system. Page 2 carryback schedule should be left blank.
Generally a net operating loss must be carried back (if applicable) and forward
in the procedural sequence of taxable periods provided by Section 172
of the Internal Revenue Code of 1986, as defined in Code Section
48-1-2. For taxable years ending on or before December 31, 2017, generally
the carryback period is 2 years (with special rules for farmers (5
years), casualty losses (3 years); specified liability loss (10 years),
small business loss attributable to federally declared disasters (3 years);
etc.) For losses incurred in taxable years ending after December 31, 2017,
there is no carryback (with a 2 year carryback for farmers) and unlimited
carryover. Also, Georgia does not follow the following federal provisions:
Special carryback rules enacted in 2009.
Special rules relating to Gulf Opportunity Zone public utility casualty
losses, I.R.C. Section 1400N(j).
5 year carryback of NOLs attributable to Gulf Opportunity Zone losses,
I.R.C. Section 1400N(k).
5 year carryback of NOLs incurred in the Kansas disaster area after May
3, 2007, I.R.C. Section 1400N(k).
5 year carryback of certain disaster losses, I.R.C. Sections 172(b)(1)(J)
and 172(j).
The election to deduct public utility property losses attributable to May 4,
2007 Kansas storms and tornadoes in the fifth tax year before the year of
the loss, I.R.C. Section 1400N(o).
For losses incurred in taxable years beginning on or after January 1, 2018, the net
operating loss cannot offset more than 80% of Georgia taxable net income.
Within 90 days from the last day of the month in which this form is filed, the
Commissioner of Revenue shall make a limited examination of the form and
disallow without further action any form containing errors of computation not
correctable within such 90-day period or having material omissions. A decrease of
tax determined for prior year tax will first be credited against any unpaid tax and
any remaining balance will be refunded to the taxpayer without interest within the
90-day period.
*Note: This form shall constitute a claim for credit or refund.
If the commissioner should determine that the amount credited or refunded by
an application is in excess of the amount properly attributable to the carryback with respect to which such amount was credited or refunded, the
commissioner may assess the amount of the excess as a deficiency as if it were
due to a mathematical error appearing on the face of the return.
What to attach:
1. Copy of Federal Application for Net Operating Loss.
2. Copy of Federal return for the loss year that includes pages 1 and 2,
schedules 1, A, D, and E.
3. Copy of Federal returns for the carryback years that includes pages 1 and 2,
Schedule 1 and Schedule A and any schedules that were recalculated in carryback year.
4. Copy of Georgia returns for the carryback or carryforward years
5. Copy of Georgia form 500 for the loss year.
Be sure to attach all required forms listed above and complete all lines of the
Form 500-NOL that apply. Otherwise your application may be disallowed.
The carryback period may be foregone and the NOL carried
forward. Election: A taxpayer is bound by the Federal election to forego the
carryback period. A copy of this election should be attached to the Georgia
return. If there is a Georgia NOL but no Federal NOL, the taxpayer may make
an election “for Georgia purposes only” under the same rules and
restrictions as the Federal election. The Form 500-NOL should be filed even
when the carryback period is foregone.
Example: A taxpayer has a large Net Operating Loss in 1998 (both Federal and
Georgia). With his timely filed Federal return, he includes a statement that
he elects to forgo the carryback period. He must therefore carry his
Georgia (as well as his Federal) NOL forward without first carrying it back.
Any portion not absorbed after 20 years is lost.

Page 2 Instructions
Columns a, c, and e.
Enter the amounts from your original return or as previously adjusted by you or the
Department of Revenue.
Columns b, d, and f.
Lines 1 and 5, enter the amounts after adjustments that are required by I.R.C.
Section 172, if any. Line 1 should not be reduced by the Federal or Georgia NOL.
Lines 2 and 7, enter the amounts from your original return or as previously adjusted
by you or the Department of Revenue.
Line 3. For the earliest carryback year, in column (b) enter the NOL from page 3, line
41. In column (d) and (f) if applicable, enter the amount from line 9 of the Net
Operating Loss Carryover schedule on page 4. For example, a taxpayer has a loss
from 2013 which has a two year carryback period. The loss from page 3 line 41 is
listed on line 3 in column (b) for 2011. Not all of the loss is utilized. The taxpayer
makes the adjustments as required for 2011 in the Net Operating Loss Carryover
schedule on page 4 and lists the amount from line 9 (if it is a positive amount) on line
3 in column (d) for 2012.
Line 10, the credit for taxes paid to other states should be recomputed based on the
new Georgia AGI and deductions. Other credits that are based on liability should be
adjusted accordingly. Any credits that are not allowed and that are eligible for carryforward can be carried forward. Do not enter more than Line 9.
Page 3 Instructions
A Georgia Net Operating Loss (NOL) must be computed separately from any
Federal NOL. It is possible to have a Federal NOL, but not a Georgia NOL.
Line 21. In computing a Georgia NOL only Georgia amounts can be used. Interest
on U.S. savings bonds should be entered as a negative number on this line. NonGeorgia municipal interest should be entered as a positive number on this line. The
nonbusiness portion of the retirement exclusion should be entered as a negative
number on this line. This should be computed as follows. The total nonbusiness
income (as it is defined for NOL purposes) that is included in the retirement exclusion
should be divided by the total income that is included in the retirement exclusion.
This percentage should then be multiplied by the retirement exclusion. For example,
if the taxpayer has $8,000 in wages and $20,000 in interest income, the taxpayer
would divide $20,000 by $28,000 and then multiply this by the retirement exclusion
amount. When computing the percentage, the following guidelines should be
followed:
1. If the total nonbusiness income that is included in the retirement exclusion is
zero or less than zero, the percentage is zero. This would apply even if the total
income that is included in the retirement exclusion is zero or less than zero.
2. If the total nonbusiness income that is included in the retirement exclusion is
greater than zero and exceeds the total income that is included in the retirement
exclusion, the percentage is 100%. This would apply even if the total income that is
included in the retirement exclusion is zero or less than zero.
Additionally, in situations where two people file married filing joint, a separate
computation should be made to determine each taxpayer’s portion of the retirement
exclusion that is related to nonbusiness income.
Line 42. Georgia follows the I.RC. Section 461(l) loss limitation. However, before the
I.RC. Section 461(l) loss limitation is applied, the business should compute the
business income and deductions pursuant to the I.R.C. as defined for Georgia
purposes (with the I.R.C. section 168(k) disallowance, etc.). Then the 461(l) provisions
should be applied. The 461(l) loss that is disallowed and is eligible to be carried
forward should be entered on line 42. This amount must be included when the 500NOL is filed to establish the NOL on the Department’s systems so the NOL will be
available when subsequent year returns are filed.
Page 4 Instructions
Net Operating Loss Carryover
1. A Georgia Net Operating Loss (NOL) carryover must be computed separately
from any Federal NOL carryover. It is possible to have a Federal NOL carryover
but not a Georgia NOL carryover.
2. Line 3, enter as a positive number the adjustment as required by I.R.C.
Section 172, if it applies.
3. Line 4, enter as a positive number the gain excluded under I.R.C. section 1202
on the sale or exchange of qualified small business stock, if it applies.
4. Lines 5 and 6, enter the adjustments that are required by I.R.C. Section 172,
if any.
5. Line 9, if the 80% limitation applied to the year the loss was carried to,
an additional adjustment must be made before entering the loss on either the
carryover year on page 2 or the carryover year after the loss year. After
computing the amount on line 9, add the difference between the taxable income
before NOL carryback on line 2 and the NOL actually used considering the 80%
limitation. For example, the taxpayer has a 2019 NOL of 200,000. Their taxable
income in 2020 is 100,000 (they used 80,000 of the NOL after considering the
80% rule) and that $100,000 is entered on line 2 of the schedule at the top of
page 4. For simplicity sake assume the only adjustment that is required on the
top of page 4 are exemptions of 7,400 and that is entered on line 7.
Therefore the modified taxable income on line 8 is 107,400. Subtracting
the 107,400 from the 200,000 results in 92,600 being entered on line 9. The
difference of the 100,000 line 2 amount and the 80,000 is 20,000. This
would be added to the 92,600 and therefore 112,600 is available to be carried to
2021.

500- NOL (Rev. 12/31/20)
Please note that the amount from line 9 of the year directly preceding the
loss year is the amount (if any) that can be carried to the year after the
loss year (carryover year). The same adjustments from this schedule must
be made to each year in the carryover period to determine the amount that is
available to be carried to the next carryover year. For example, a taxpayer
has a loss from 2013 which has a two year carryback period. The loss is
carried back to 2011 and 2012 on page 2 but not all of the loss is
utilized. The taxpayer makes the adjustments as required to 2011
and 2012 in the Net Operating Loss Carryover schedule at the top
of page 4. After computing the amount for 2012 there is a positive
amount on line 9 of the 2012 column. This amount can be carried
to 2014 and the amount used in 2014 should be listed on the 2014
return not on Form 500-NOL. If not all of the loss is utilized in 2014,
the taxpayer should make the same adjustments to 2014 as are
listed in the Net Operating Loss Carryover schedule on page
4 to determine if any loss is available to be carried to 2015. A schedule
showing this should be attached to the 2014 return and should not be
listed on the Form 500-NOL.
If the loss was carried to a part year or nonresident return, on line
2 of the carryover schedule enter the amount from line 14 schedule 3 of
Form 500 for the year it was carried to. For lines 3, 4, and 5, enter
amount if related to Georgia Income. For lines 6 and 7, multiply the amount
by the ratio on line 9, schedule 3 of Form 500 for the year the loss was
carried to.
Part Year and Nonresident Instructions. See instructions on page 4.