Question

In 2017, Chester calculated a ($23,497) NOL on his Form 1045, Schedule A. Chester wants to carryback his 2017 NOL to 2015. In 2015, Chester filed single, had no dependents, took the standard deduction, and his AGI reported on his Form 1040, line 37, was $31,598. Chester's 2015 income tax was $2,730 and his 2015 self-employment tax was $4,804.
Using Form 1045, pages 1 and 2, carryback Chester's 2017 NOL to 2015 and calculate his refund.

	$2,730.
	$3,075.
	$4,133.
	$5,797.

Answer 1

Adjusted Gross income = $31598

Self emloyeed tax = $4804

income tax = $2,730

Recalculate Adjusted gross income after taxes = $31598 - $4804 = 26794

Net Operating Loss is $23,497 for 2017

Carryback NOL $23497 with Adjusted gross income $26794 (for 2015)

AGI - NOL = 26794 - 23497 = 3297

Income after tax = 3297 - 2730 = 567

For year 2016

Income tax = $3075

income after tax = 567 - 3075 = -2508

For year 2017

income tax $4133 will not charged because negative income for 2016 after tax

Deductable amount for carryback NOL in tax is = 2508 + 4133 = $6641