The Mississippi Net Operating Loss Schedule is used to track a taxpayer’s Mississippi net operating losses from prior years and show how much of those losses is being used in the current tax year and how much remains available to carry forward. In other words, it is a supporting schedule that helps organize NOL activity by year, identify the amount originally generated, show the income year in which part of the loss is being applied, and calculate the remaining balance after current-year use. This schedule also gives the taxpayer a place to make the state election to give up the carryback period and carry the current year loss forward instead. Because NOL reporting can affect multiple tax years, this schedule should be completed carefully so that each loss year is tracked correctly and the amount claimed on the return matches the total used on the schedule.
Who Should Use This Schedule
Use this schedule if you have a Mississippi net operating loss from a prior year, are using part of an NOL in the current year, are carrying an NOL forward, or need to make the state election to forgo carryback and carry the current year NOL forward.
How To Complete Mississippi Net Operating Loss Schedule
Complete the identifying information first, then fill in the NOL table for each separate loss year. After the table is complete, total the available loss, enter the amount used in the current year, and calculate the balance that remains available for carryforward. Make sure negative and positive numbers are entered exactly as required on the schedule.
Taxpayer Information
Taxpayer SSN: Enter the taxpayer’s Social Security number.
Spouse SSN: If this is a joint return, enter the spouse’s Social Security number.
Amended: Mark this box if the schedule is being filed with an amended return or to amend previously reported NOL information.
Net Operating Loss Table
This section is used to list each loss year separately. If you have more than one NOL year, enter each one on its own row.
Column A, NOL Year End YYYYMMDD: Enter the year-end date for the net operating loss year in YYYYMMDD format. This identifies the tax year in which the loss originated.
Column B, NOL Amount, Enter As A Negative Number: Enter the original net operating loss amount for that year as a negative number. Do not enter it as a positive amount.
Column C, Income Year NOL Applied YYYYMMDD: Enter the year-end date of the income year to which the NOL is being applied. Use YYYYMMDD format.
Column D, Amount Used In Income Year, Enter As A Positive Number: Enter the portion of the NOL used in the income year shown in Column C. This amount must be entered as a positive number.
Column E, NOL Balance (B) + D = (E), Enter As A Negative Number Or Zero: Calculate the remaining NOL balance by adding the amount in Column D to the negative amount in Column B. Enter the result as a negative number or zero. If the entire NOL has been used, enter zero.
Repeat these columns for each separate NOL year that applies.
Summary Lines
After completing the NOL table, finish the three summary lines at the bottom of the schedule.
Line 1: Enter the total NOL available from the schedule above. This amount must be entered as a negative number.
Line 2: Enter the NOL used in the current year as a positive number. This is also the amount to enter on Form 80-108, Schedule N, line 1.
Line 3: Enter the remaining NOL available for carryforward. This is calculated by adding line 1 and line 2. Because line 1 is negative and line 2 is positive, the result should normally be the unused balance that remains to future years.
State Election
State Election To Forgo Carryback And To Carryforward The Current Year NOL: Use this section if you are making the Mississippi election to waive the carryback period for the current year net operating loss and carry that loss forward instead. Complete it only if that election applies to your return.
Tips For Completing The Schedule Correctly
Keep each NOL year separate and do not combine different loss years into one line. Always enter the original NOL in the loss column as a negative number and the amount used in the current year as a positive number. Check the year-end dates carefully and use the required YYYYMMDD format. Make sure the amount claimed on the related return matches the amount shown on line 2 of this schedule. Before filing, review the carryforward balance to confirm it agrees with your records for future years.
Common Mistakes To Avoid
A common mistake is entering the NOL amount as a positive number instead of a negative number. Another is putting the amount used in the current year in the wrong sign format. Taxpayers also sometimes forget to list each NOL year separately or fail to update the remaining balance after using part of a loss. Small sign errors can change the result significantly, so review each line carefully before filing.