In 2017, Phil incurred an NOL and carried his 2017 NOL back to 2015. He deducted
ID: 2432646 • Letter: I
Question
In 2017, Phil incurred an NOL and carried his 2017 NOL back to 2015. He deducted a portion of 2017 NOL in 2015 and calculated an NOL carryover of ($20,041) on his 2017 Form 1045, Schedule B. Phil wants to carryover his unused 2017 NOL to 2016. In 2016, Phil filed single, had no dependents, took the standard deduction, and his AGI reported on his Form 1040, line 37, was $32,259. Phil's 2016 income tax was $2,825 and his 2016 self-employment tax was $4,905. Using Form 1045, pages 1 and 2, carryover Phil's unused 2017 NOL carryover to 2016 and calculate his refund. $2,634. $2,636. $2,639. $2,641.
Explanation / Answer
AGI reported on Form 1040 $32,259 Less: NOL carryback ($20,041) Net AGI $12,218 Less: Standard deduction $6,300 Personal deduction $4,050 Taxable income $1,868 Tax @ 10% $186 Income tax for 2016 $2,825 Tax refund $2,639