Article: 50362

Overview

The GA – Schedule 4 NOL screen is used to report Georgia-specific net operating losses (NOLs), including those related to business, farm, and insurance losses. The screen also handles Georgia-based adjustments, nonbusiness income and deductions, and the tracking of NOL carrybacks and carryforwards.

The full form is made up of three parts, which can be completed individually based on the type of loss and treatment needed.

Fields highlighted in green are override fields that modify amounts flowing in from other parts of the return.

This screen is located under the NOL tab in the Georgia section.

Part I – NOL Calculation

This section is used to enter high-level information about the loss and compute the total NOL:

Type of Loss – Select any of the following:

• Normal Loss
• Insurance Loss (2-year)
• Farm Loss (2-year)

Portion Entry Fields – Enter the dollar amounts for:

• Normal Portion
• Insurance Loss Portion
• Farm Loss Portion

Line-Item Entries:

• 1. Georgia Income
• 2. Georgia Exemption
• 4. Excess of Nonbusiness Capital Losses over Nonbusiness gains after $3,000 Federal limitation
• 6. Total of Lines 1–5 above
• 7. IRC Section 461(l) loss eligible to be carried forward only
• 8. Total Loss(es)

Carryforward Indicator:

• Select “Yes” if the loss is being carried forward only
•  Select “No” if carryback rules apply

Part II – NOL Worksheet

This section includes detailed Georgia adjustments for nonbusiness income and deductions. These adjustments help calculate the actual portion of the loss applicable under Georgia law.

Georgia Nonbusiness Income:

• 1. Excess of Nonbusiness Capital Gains over Nonbusiness Capital Losses
• 2. Dividends
• 3. Interest
• 4. Alimony (received)
• 5. Pensions/Annuities
• 6. Georgia adjustment for retirement exclusion
• 7. Georgia adjustment for U.S. interest
• 8. Georgia adjustment for non-Georgia municipal interest
• 9. Other (custom entry)

Georgia Nonbusiness Deductions:

• 11. Standard/itemized deduction (minus casualty, Form 2106 deductions, and state/local taxes)
• 12. Contributions to a self-employed pension plan or Keogh
• 13. Alimony (paid)
• 14. Forfeited interest/penalty on early withdrawal
• 15. Contribution to a deductible IRA
• 16. Other (custom entry)

All fields in Part II are override fields.

Part III – Carryback

Used to calculate the effect of carrying back a loss to previous tax years. Enter details for each affected year:

Year Ended – Enter the end date for each affected prior year.

For each year, enter as-filed and post-NOL application values for the following:

• Federal Adjusted Gross Income (excluding federal NOL)
• Georgia Adjustments
• Net Operating Loss
• Deductions
• Exemptions
• Income Tax
• Credits

Each entry has two columns:

• (a) Return as filed or liability as last determined
• (b) Liability after application

All Part III fields are override fields.

How to Add the NOL Calculations

1. Click on the State Taxes section on the left-hand side of the screen.
2. Click the link “I’d like to see the forms I’ve filled out or search for a form.”
3. Click on the dropdown menu for Georgia.
4. Select the NOL tab.
   • 5. To enter NOL calculations and adjustments: Click on GA – Schedule 4 NOL to open the screen.
   • To enter NOL carryback information: Click on GA – Schedule 4 NOL – Part 3 to open the screen.
   •  Enter the applicable details. Click Save.

Further Information

For more on Georgia’s treatment of net operating losses and related guidance, visit:
Georgia Department of Revenue – Taxes for Individuals:
https://dor.georgia.gov/taxes/taxes-individuals