17932: AR NOL Change (Drake22)

For tax year 2022, the AR DFA has updated the 1000 NOL form for the Individual package. Due to the change, updating the previous years carryforwards will look a little different this year.

When you update your return from 2021, and there is an NOL carryforward to 2022, open the LOSS screen in data entry to verify the amounts. There is now a link at the top of the screen called Access updated 2021 NOL data entry. If there were multiple LOSS screens that updated from 2021, a list of all screens will be displayed. Select the first loss to see the detailed information. The screen will show the first year each NOL was produced, along with any amounts previously used and amounts that carried to 2022. 

Here is an example for an NOL that began in 2018, with additional NOLs (new loss, not a carryover) for 2019, 2020, and 2021. 

Additional NOL in 2019

Additional NOL in 2020: 

Additional NOL in 2021

You will need to use the new LOSS screen to record all carryover data. Entries must be made on this screen even if data carried over from a prior year. Key the information under the column(s) for the year(s) the NOL originated. When there is an amount claimed for each year, the amounts need to be added together (for example: Amounts claimed in 2020 on each NOL need to be added together for the full amount claimed that year, regardless of which NOL amount it was used against). For example, here is what the data entry screen would look like for the above scenario of carryover data: 

The NOL claimed will carry to the AR-OI Form, line 11. When an NOL expires, it must be directly entered. For example, if there’s an NOL amount from 2017 that is still carrying forward, it will expire in 2022. You must enter that in the Amount Expired row under the 2022 column.

• Losses occurring on or after January 1, 2020, but before January 1, 2021, may be carried forward for a total period of eight (8) years.
• Losses occurring before January 1, 2020, may be carried forward for a total period of five (5) years.
• Starting January 1, 2021 NOLs can be carried forward up to ten years.

Please see the updated 1000 NOL instructions available from Arkansas for more information.