Schedule FIT-20NOL (State Form 44624) is the official tax document used by financial institutions in Indiana to compute and track their Net Operating Loss (NOL) Deduction. This form is critical for banks, holding companies, and other financial entities that file the FIT-20 return and wish to apply losses from previous years to reduce their current or future tax liability. The form essentially acts as a ledger, tracking losses generated in specific years (Loss Years) and showing how they are applied against income in subsequent years (Tax Years). It ensures that you correctly calculate your “Member’s Share of Indiana Adjusted Gross Income (AGI)” and apply valid NOLs within the allowable carryforward periods.
Who Must File?
This schedule must be filed by any taxpayer filing a Form FIT-20 (Indiana Financial Institution Tax Return) who:
- Incurred a Net Operating Loss in a prior year that is being carried forward to the current tax year.
- Is a member of a unitary group and needs to compute their specific share of the group’s NOL.
Key Concepts Before You Begin
- Loss Year: The tax year in which the loss occurred.
- Tax Year: The year to which you are applying the loss to reduce income.
- Unitary Filing: If you file as a unitary group, this form helps break down the loss and income for each specific member of the group.
How to Complete Schedule FIT-20NOL: Line-by-Line Instructions
The form is organized into a grid format. The columns represent different Tax Years (years where you might have income), and the rows represent Loss Years (years where you generated a loss).
Header Information
- Name of Corporation: Enter the legal name of the corporation or member filing this schedule.
- Federal Employer Identification Number (FEIN): Enter the 9-digit FEIN of the corporation.
Part 1: Computing Adjusted Gross Income (Rows 1-5)
These lines are found at the top of each section (grouped by years, e.g., 2011–2018 and 2019–2025). You must complete these for every year listed to establish whether you had a profit or a loss.
- Line 1: Total AGI or (Loss)
Enter the total Adjusted Gross Income or Loss for the unitary group from the federal return (as adjusted for Indiana purposes) for that specific tax year. - Line 2: Combined Apportionment %
Enter the combined apportionment percentage for the unitary group for that year. This is usually taken from your Schedule E-U or similar apportionment schedule. - Line 3: Combined IN AGI or (Loss)
Multiply Line 1 by Line 2. This gives you the total Indiana Adjusted Gross Income (or Loss) for the entire group. - Line 4: Member’s Share of IN Receipts %
Enter this specific member’s receipt percentage. This represents the member’s share of the business activities in Indiana relative to the group. - Line 5: Member’s Share of IN AGI or (Loss)
Multiply Line 3 by Line 4.- If this amount is negative: You have an Indiana NOL for this year. Enter this amount in the “Indiana NOL” column corresponding to that loss year.
- If this amount is positive: You have positive income against which you can apply past NOLs.
Part 2: Applying the Net Operating Loss (The Grid)
Once you have established the income or loss for each year in Line 5, use the grid to track the application of losses.
- Indiana NOL Column:
In the row for the specific Loss Year (e.g., 2018), enter the full amount of the loss calculated in Line 5 for that year. - Applying Loss to Income Years:
Move across the row for a specific Loss Year. If you had positive income in a subsequent Tax Year (e.g., you had a loss in 2018 but a profit in 2019), enter the amount of the 2018 loss you are using to offset the 2019 income. - Adjusted Gross Income After NOL Deduction:
At the bottom of each Tax Year column, calculate the remaining income after all NOLs from prior years have been applied. This result flows to your FIT-20 return as taxable income. - Remaining NOL:
The far-right column (usually found in the second section for later years) allows you to track how much of a specific Loss Year’s NOL is left to carry forward to future years.
Important Rules for Indiana FIT NOLs
- Carryforward Only: Unlike some federal rules, Indiana Financial Institution Tax NOLs are generally carried forward to future years. Check specific tax year instructions for carryback allowances (which are rare or non-existent for FIT).
- Apportionment First: The NOL is calculated after apportionment. You do not carry forward pre-apportionment federal losses; you carry forward the specific Indiana loss calculated on Line 5.
- Member Specific: In a unitary return, losses are tracked by the member who generated them.
Tip: Keep a digital or physical copy of this schedule every year. Because NOLs can be carried forward for up to 15 years (depending on the tax year generated), you will need the data from this form to accurately complete your tax returns for more than a decade.