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15628: 1040 - NOL and Hurricane or Disaster Relief


Hurricane + Disaster Relief

This return has a casualty loss from a hurricane and is using the standard deduction. Why isn't the NOL being generated on Form 1045 page 3? 

 

If you are not seeing a calculated NOL on the return, you should review the amounts flowing to Form 1045 pg 3 in View/Print mode.

If you do not have Form 1045, page 3, you can force print the form by using the PRNT screen. 

The non-business deductions are entered as a positive amount on Form 1040, page 3, line 6. If the taxpayer is using the standard deduction, this amount would include their standard deduction plus the net qualified disaster loss (entered as a positive amount). Follow the form instructions to see if there is an NOL. Note that if the result is zero or more, there is no NOL.

In some cases, it may be more beneficial for the taxpayer to itemize deductions instead of taking the standard deduction. To force itemized deductions when standard is generally more beneficial, use the Force Itemized box on screen A. This will change what amount carries to line 6 of Form 1045 which may result in NOL being calculated. 

Note: In order for a personal casualty loss to be allowed and carried to the 1045, a FEMA code must be entered, or the Qualified disaster loss checkbox must be marked on the 4684 screen.

For more information, see the 1045 Instructions, 4684 Instructions, and Related Links below. 


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