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Blank Georgia 500 Nol PDF Form

The Georgia Form 500-NOL is used for reporting a net operating loss adjustment for individuals and fiduciaries. This form allows taxpayers to claim a refund for taxes due to losses carried back from previous years. If you need to fill out this form, please click the button below.

Article Guide

The Georgia Form 500-NOL is an essential document for individuals and fiduciaries who need to report a net operating loss (NOL) for tax purposes. This form allows taxpayers to adjust their income tax liability by carrying back or carrying forward losses incurred in previous tax years. It is crucial for those who have experienced financial setbacks, as it provides a means to offset taxable income and potentially receive tax refunds. The form requires detailed information, including the taxpayer's Social Security Number or Federal Employer Identification Number, the taxable year of the loss, and the specific amount of the net operating loss. Taxpayers must also indicate the type of loss—whether it is a normal loss, casualty loss, or farm loss—while ensuring that they attach a complete copy of their federal return for the loss year. Additionally, the form includes a section for calculating adjustments to federal adjusted gross income and determining Georgia adjusted gross income. Filing this form correctly is vital for establishing the NOL in the Department of Revenue's system, which can significantly impact future tax liabilities.

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Georgia Form 500-NOL

Net Operating Loss Adjustment

For Individuals and Fiduciaries(Rev. 12/31/20)

PAGE 1

ATTACH A COMPLETE COPY OF YOUR FEDERAL RETURN FOR THE LOSS YEAR

YOUR SSN OR FEIN

SPOUSE’S SSN

DEPARTMENT USE ONLY

YOUR FIRST NAME		MI		LAST NAME				SUFFIX

SPOUSE’S FIRST NAME		MI		LAST NAME				SUFFIX


ADDRESS (NUMBER AND STREET or P.O. BOX) (Use 2nd address line for Apt, Suite or Building Number)						CHECK IF ADDRESS CHANGED


CITY					STATE		ZIP CODE


(COUNTRY IF FOREIGN)

TAXABLE YEAR OF NET OPERATING LOSS: CALENDAR YEAR			____________________:
OR OTHER YEAR BEGINNING ____________________	AND ENDING ____________________
NET OPERATING LOSS: $ _____________________

PLEASE ATTACH A COPY OF YOUR FEDERAL APPLICATION FOR NOL ADJUSTMENT, PART YEAR AND NONRESIDENTS SEE INSTRUCTIONS ON PAGE 4.

TYPE OF LOSS:	NORMAL	CASUALTY LOSS	FARM LOSS	FARM LOSS	OTHER
	(2) YEAR	(3)) YEAR	(2)) YEAR	(5)) YEAR	(EXPLAIN IN ATTACHMENT)
PORTION:	$ ________________	$ ________________	$ ________________	$ ________________	$ ___________________

IS THE LOSS ONLY BEING CARRIED FORWARD? YES

NO	Form 500-NOL is still required, see instructions.

Georgia Form 500-NOL						TAXPAYER’S FEIN
Net Operating Loss Adjustment
For Individuals and Fiduciaries
For Individuals and Fiduciaries
	PAGE 2

		___________________ PRECEDING TAX		___________________ PRECEDING TAX		__________________ PRECEDING TAX
	TAX YEAR:	YEAR ENDED ______________________		YEAR ENDED ______________________		YEAR ENDED ______________________
	RESIDENCY STATUS
	FILING STATUS

		(a) Return as filed or	(b) Liability after	(c) Return as filed or	(d) Liability after	(e) Return as filed or	(f) Liability after application
	Computation of overpayments	liability as last	application of	liability as last	application of	liability as last	of
		determined	carry-back	determined	carry-back	determined	carry-back

1.Federal adjusted gross income (exclude Federal NOL)

2.Georgia adjustments. See Page 5 of the instructions

3.Net operating loss. See Page 5 for 80% rule and other instructions

4.Georgia adjusted gross income Net total of Lines 1, 2 and 3.

5.Deductions. See Page 5 of the instructions.

6.Subtract Line 5 from Line 4

7.Exemptions. See Page 5 of instructions.

8.Taxable Income. Subtract Line 7 from Line 6.

9.Income Tax.

10.Credits. See Page 5 of the instructions.

11.Tax after credits. Subtract Line 10 from Line 9.

12.Enter Line 11 column (b) (d) (f), respectively.

13.Decrease in tax. Subtract Line 12 from Line 11.

Mailing Address: Georgia Department of Revenue Processing Center, PO Box 740318, Atlanta, GA. 30374-0318

Under penalty of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief it is true, correct and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Taxpayer’s Signature

Date

Taxpayer’s Phone Number

Taxpayer’s Spouse Signature

Date

Check the box to authorize the Georgia Department of Revenue to discuss the contents of this return with the named preparer.

By providing my e-mail address I am authorizing the Georgia Department of Revenue to electronically notify me at the below e-mail address regarding any updates to my account(s).

Taxpayer’s E-mail Address

Signature of Preparer Other Than Taxpayer		Preparer’s Phone Number

Name of Preparer Other Than Taxpayer		Preparer’s FEIN

Preparer’s Firm Name

Preparer’s SSN/PTIN/SIDN

Georgia Form 500-NOL

COMPUTATION OF NET							TAXPAYER’S FEIN
OPERATING LOSS - LOSS YEAR
PAGE 3
PAGE 3
PART YEAR AND NONRESIDENTS, SEE INSTRUCTIONS ON PAGE 4

1.		Adjusted gross income, Line 8, Page 2 of form 500						1.
2.		Line 9 adjustments		....	................................			2.
	. ..........................................................................................................3. Deductions (Applies to individuals only)
		. ........................a. Enter amount of your Standard or Itemized Deductions, Line 11c or Line 12 of form 500				3a.
		b. Personal exemption, Line 14c of form 500				3b.
4.		Total (Lines 3a and 3b)				4.
5.		Taxable income. Total of Line 1 and Line 2 less Line 4						5.
	6. Exemptions claimed, Line 14c of form 500					6.
	6. Exemptions claimed, Line 14c of form 500
7.		................Nonbusiness capital losses before limitation. Enter as a positive number			7.
8.		Total nonbusiness capital gains (without regard to any I.R.C section 1202 exclusion)			8.
9.		If Line 7 is more than Line 8, enter the difference; otherwise, enter -0-			9.
10.		If Line 8 is more than Line 7, enter the difference; otherwise, enter -0-			10.
	11. Enter either your standard deduction or itemized deductions
		less casualty, 2106 deductions, and state and local	11.
		income taxes	11.
		income taxes
12.		Contributions to self-employed pension plan or Keogh
12.		Contributions to self-employed pension plan or Keogh	12.
13.		Alimony (paid)	13.
			13.
14.		Forfeited interest/penalty on early withdrawal	14.
15.		Contribution to an IRA	15.
15.		Contribution to an IRA
16.		Other (specify)	16.
16.		Other (specify)	16.
17.		Total nonbusiness deductions (Lines 11 through 16)			17.
18.		Dividend income	18.
18.		Dividend income	_______________________
19.		Interest income	19.
19.		Interest income	_______________________
20.		Alimony/pensions/annuities	20.
21.		GA adjustment for retirement exclusion, U.S. interest,
21.		GA adjustment for retirement exclusion, U.S. interest,	21.
		non-Georgia municipal interest, etc (See Page 4)	21.
22.		Other (specify)	22.
22.		Other (specify)
23.		Total nonbusiness income other than capital gains (Lines 18 through 22)			23.
	24. Add Lines 10 and 23				24.
25.		If Line 17 is more than Line 24, enter the difference; otherwise enter -0-				25.
						25.

26.		If Line 24 is more than Line 17, enter the difference; otherwise enter -0-.
		Do not enter more than Line 10			26.
		Do not enter more than Line 10
27.		Total business capital losses before limitation. Enter as a positive number			27.
27.
28.		Total business capital gains (without regard to I.R.C. section 1202 exclusion)			28.
28.
29.		Add Lines 26 and 28			29.
30.		If Line 27 is more than Line 29, enter the difference; otherwise enter -0-			30.
31.		Add Lines 9 and 30			31.
	32. Enter your net capital loss before the $3,000 federal limitation, if any. Enter as a
		positive number. If you do not have this loss (and do not have an I.R.C. section
		1202 exclusion) skip Lines 32 through 37 and enter on Line 38 the amount from
					32.
		Line 31			32.
33.		I.R.C. section 1202 exclusion (50% exclusion for gain from certain small business
33.
		stock). Enter as a positive number				33.
34.		Subtract Line 33 from Line 32. If zero or less enter -0-			34.
34.		Subtract Line 33 from Line 32. If zero or less enter -0-			34.
	35. Enter your net capital loss after the $3,000 Federal limitation.
		Enter as a positive number			35.
					35.
36.		If Line 34 is more than Line 35, enter the difference; otherwise enter -0-			36.
37.		........................................................If Line 35 is more than Line 34, enter the difference; otherwise enter -0-				37.
38.		Subtract Line 36 from Line 31. If zero or less, enter -0-				38.
	39. Previous net operating loss claimed. Enter as a positive number					39.
40.		Add Lines 6, 25, 33, 37, 38, 39						40.
40.		Add Lines 6, 25, 33, 37, 38, 39						40.
	41. Loss amount. Combine Lines 5 and 40. If the result is less than zero, enter it here. If the loss is being carried back to a part year or nonresident return,							41.
		see instructions on Page 4. If the result is zero or more, you do not have a normal net operating loss						_______________________
42.		IRC Section 461(1) loss eligible to be carried forward only (enter as negative)						42.
	43.	Total Net Operating Loss. Combine Lines 41 (if Line 41 is a negative) and Line 42.		Enter on Page 1				43.

Georgia Form 500-NOL

PAGE 4

TAXPAYER’S FEIN

NET OPERATING LOSS CARRYOVER

Complete if applicable. See page 5 for instructions.

Complete one column before going

to the next column. Start with the earliest carryback year.

1.Net operating loss deduction .....

2.Taxable income before N.O.L. carryback .........................................

3.Net capital loss deduction. Enter as a positive number........................

4.I.R.C. section 1202 exclusion. Enter as a positive number..............

5.Adjustments to adjusted gross income ...........................................

6.Adjustments to itemized deductions

7.Exemptions ................................

8.Modified taxable income. Combine Lines 2 through 7. If zero or less, enter -0- ..............................................

9.Net operating loss carryover. Line

1 less Line 8. If zero or less, enter -0-

___________________ PRECEDING TAX	___________________ PRECEDING TAX	__________________ PRECEDING TAX
YEAR ENDED ______________________	YEAR ENDED ______________________	YEAR ENDED ______________________

PART YEAR AND NONRESIDENTS

Complete if applicable

Year_________ Use a separate schedule for all applicable years.

1.Georgia Adjusted Gross Income (exclude Federal NOL). See instructions below.....................................................

2.Georgia NOL. See instructions below............................

3.Adjusted AGI for NOL purposes...................................

4.Percentage. Line 3, column C divided by column A. See instructions below.....................................................

5.Itemized or standard deduction. See instructions below.

6.Personal exemptions.......................................................

7.Total deductions and exemptions; add Lines 5 & 6..........

8.Line 4 percentage times Line 7........................................

9.Adjusted taxable income, column C, Line 3 less Line 8, enter here and on taxable income Line 8 of Page 2.......

Column A	Column B	Column C
Total	Non Georgia	Georgia

Part Year and Nonresident schedule instructions. (Use if carrying the loss to a part year or nonresident return regardless of whether the loss year is a part year or nonresident return.)

1.Lines 1 and 5, enter the amounts, after the adjustments that are required by I.R.C. Section 172 if any apply, for the year the loss is being carried to.

2.Line 2 column A and C, enter loss from Page 3, Line 41 or from Page 4, Line 9 of the net operating loss carryover schedule.

3.Line 4, if Georgia AGI is zero or negative, the percentage is zero. If the adjusted Federal AGI is zero or negative, the Line 4 percentage is considered to be 100%. This also applies if both adjusted Federal AGI and Georgia AGI are zero or negative. In this case, the taxpayer is entitled to the full exemp- tion amount and deductions.

Additional instructions for part year and nonresidents.

1.500-NOL Page 2. Lines 1 through 7 should not be completed for any years for which a part year or nonresident return was filed. Instead the part year and nonresident schedule above should be completed.

2.500-NOL Page 3 must be completed. If the loss year is a part year or nonresident year for Lines 3a, 3b, 6, and 11, compute the amount and then multiply it by the percentage of Georgia AGI to adjusted Federal AGI on schedule 3 of the loss year return. For example, if you have one exemption, multiply $2,700 by the percentage on schedule 3 of the loss year return. The other Lines on Page 3 that pertain to Georgia source income should also be filled in.

3.500-NOL Page 4. net operating loss carryover schedule. If any years on this schedule are part year or nonresident years, for Lines 6 and 7, compute the amount and then multiply it by the percentage on Line 4 of the part year and nonresident schedule. For example, if you have one exemption, multiply $2,700 by the percentage on Line 4 of the above schedule. The other Lines on the net operating loss carryover schedule that pertain to Georgia source income should also be filled in.

500- NOL (Rev. 12/31/20)

General Instructions

A net operating loss carryback adjustment may be filed on this form by an individual or fiduciary taxpayer that desires a refund of taxes afforded by carryback of a net operating loss. This form must be filed no later than 3 years from the due date of the loss year income tax return, including any extensions which have been granted. Form 500X should not be used to carryback a NOL Form 500-NOL must also be filed by the due date (including extensions) of the loss year return, when the taxpayer only carries the loss forward. This is necessary so the NOL can be established in the Department’s system. Page 2 carryback schedule should be left blank.

Generally a net operating loss must be carried back (if applicable) and forward

in the procedural sequence of taxable	periods provided by Section 172
of the Internal Revenue Code of 1986,	as defined in Code Section

48-1-2. For taxable years ending on or before December 31, 2017, generally

the carryback period is 2		years (with special	rules	for farmers		(5
years),	casualty losses	(3 years); specified	liability	loss (10	years),
small	business loss attributable to federally declared			disasters	(3	years);

etc.) For losses incurred in taxable years ending after December 31, 2017, there is no carryback (with a 2 year carryback for farmers) and unlimited carryover. Also, Georgia does not follow the following federal provisions:

Special carryback rules enacted in 2009.

Special rules relating to Gulf Opportunity Zone public utility casualty losses, I.R.C. Section 1400N(j).

5 year carryback of NOLs attributable to Gulf Opportunity Zone losses, I.R.C. Section 1400N(k).

5 year carryback of NOLs incurred in the Kansas disaster area after May 3, 2007, I.R.C. Section 1400N(k).

5 year carryback of certain disaster losses, I.R.C. Sections 172(b)(1)(J) and 172(j).

The election to deduct public utility property losses attributable to May 4, 2007 Kansas storms and tornadoes in the fifth tax year before the year of the loss, I.R.C. Section 1400N(o).

For losses incurred in taxable years beginning on or after January 1, 2018, the net operating loss cannot offset more than 80% of Georgia taxable net income.

Within 90 days from the last day of the month in which this form is filed, the Commissioner of Revenue shall make a limited examination of the form and disallow without further action any form containing errors of computation not correctable within such 90-day period or having material omissions. A decrease of tax determined for prior year tax will first be credited against any unpaid tax and any remaining balance will be refunded to the taxpayer without interest within the 90-day period.

*Note: This form shall constitute a claim for credit or refund.

If the commissioner should determine that the amount credited or refunded by an application is in excess of the amount properly attributable to the carry- back with respect to which such amount was credited or refunded, the commissioner may assess the amount of the excess as a deficiency as if it were due to a mathematical error appearing on the face of the return.

What to attach:

1.Copy of Federal Application for Net Operating Loss.

2.Copy of Federal return for the loss year that includes pages 1 and 2, schedules 1, A, D, and E.

3.Copy of Federal returns for the carryback years that includes pages 1 and 2, Schedule 1 and Schedule A and any schedules that were recalculated in carry- back year.

4.Copy of Georgia returns for the carryback or carryforward years

5.Copy of Georgia form 500 for the lossyear.

Be sure to attach all required forms listed above and complete all lines of the Form 500-NOL that apply. Otherwise your application may be disallowed.

The carryback period may be foregone and the NOL carried forward. Election: A taxpayer is bound by the Federal election to forego the carryback period. A copy of this election should be attached to the Georgia return. If there is a Georgia NOL but no Federal NOL, the taxpayer may make an election “for Georgia purposes only” under the same rules and restrictions as the Federal election. The Form 500-NOL should be filed even when the carryback period is foregone.

Example: A taxpayer has a large Net Operating Loss in 1998 (both Federal and Georgia). With his timely filed Federal return, he includes a statement that he elects to forgo the carryback period. He must therefore carry his Georgia (as well as his Federal) NOL forward without first carrying it back. Any portion not absorbed after 20 years is lost.

Page 2 Instructions

Columns a, c, and e.

Enter the amounts from your original return or as previously adjusted by you or the Department of Revenue.

Columns b, d, and f.

Lines 1 and 5, enter the amounts after adjustments that are required by I.R.C. Section 172, if any. Line 1 should not be reduced by the Federal or Georgia NOL.

Lines 2 and 7, enter the amounts from your original return or as previously adjusted by you or the Department of Revenue.

Line 3. For the earliest carryback year, in column (b) enter the NOL from page 3, line

41.In column (d) and (f) if applicable, enter the amount from line 9 of the Net Operating Loss Carryover schedule on page 4. For example, a taxpayer has a oss from 2013 which has a two year carryback period. The loss from page 3 line 41 s listed on line 3 in column (b) for 2011. Not all of the loss is utilized. The taxpayer makes the adjustments as required for 2011 in the Net Operating Loss Carryover schedule on page 4 and lists the amount from line 9 (if it is a positive amount) on ine 3 in column (d) for 2012.

Line 10, the credit for taxes paid to other states should be recomputed based on the new Georgia AGI and deductions. Other credits that are based on liability should be adjusted accordingly. Any credits that are not allowed and that are eligible for carry- forward can be carried forward. Do not enter more than Line 9.

Page 3 Instructions

A Georgia Net Operating Loss (NOL) must be computed separately from any Federal NOL. It is possible to have a Federal NOL, but not a Georgia NOL.

Line 21. In computing a Georgia NOL only Georgia amounts can be used. Interest on U.S. savings bonds should be entered as a negative number on this line. Non- Georgia municipal interest should be entered as a positive number on this line. The nonbusiness portion of the retirement exclusion should be entered as a negative number on this line. This should be computed as follows. The total nonbusiness income (as it is defined for NOL purposes) that is included in the retirement exclusion should be divided by the total income that is included in the retirement exclusion. This percentage should then be multiplied by the retirement exclusion. For example, if the taxpayer has $8,000 in wages and $20,000 in interest income, the taxpayer would divide $20,000 by $28,000 and then multiply this by the retirement exclusion amount. When computing the percentage, the following guidelines should be followed:

1.If the total nonbusiness income that is included in the retirement exclusion is zero or less than zero, the percentage is zero. This would apply even if the total income that is included in the retirement exclusion is zero or less than zero.

2.If the total nonbusiness income that is included in the retirement exclusion is greater than zero and exceeds the total income that is included in the retirement exclusion, the percentage is 100%. This would apply even if the total income that is included in the retirement exclusion is zero or less than zero.

Additionally, in situations where two people file married filing joint, a separate computation should be made to determine each taxpayer’s portion of the retirement exclusion that is related to nonbusiness income.

Line 42. Georgia follows the I.RC. Section 461(l) loss limitation. However, before the I.RC. Section 461(l) loss limitation is applied, the business should compute the business income and deductions pursuant to the I.R.C. as defined for Georgia purposes (with the I.R.C. section 168(k) disallowance, etc.). Then the 461(l) provisions should be applied. The 461(l) loss that is disallowed and is eligible to be carried forward should be entered on line 42. This amount must be included when the 500- NOL is filed to establish the NOL on the Department’s systems so the NOL will be available when subsequent year returns are filed.

Page 4 Instructions

Net Operating Loss Carryover

1.A Georgia Net Operating Loss (NOL) carryover must be computed separately from any Federal NOL carryover. It is possible to have a Federal NOL carryover but not a Georgia NOL carryover.

2.Line 3, enter as a positive number the adjustment as required by I.R.C. Section 172, if it applies.

3.Line 4, enter as a positive number the gain excluded under I.R.C. section 1202 on the sale or exchange of qualified small business stock, if it applies.

4.Lines 5 and 6, enter the adjustments that are required by I.R.C. Section 172, if any.

5.Line 9, if the 80% limitation applied to the year the loss was carried to,

an additional adjustment must be made before entering the loss on either the carryover year on page 2 or the carryover year after the loss year. After computing the amount on line 9, add the difference between the taxable income before NOL carryback on line 2 and the NOL actually used considering the 80% limitation. For example, the taxpayer has a 2019 NOL of 200,000. Their taxable income in 2020 is 100,000 (they used 80,000 of the NOL after considering the

80% rule) and that $100,000 is entered on line 2 of the schedule at the top of page 4. For simplicity sake assume the only adjustment that is required on the top of page 4 are exemptions of 7,400 and that is entered on line 7.

Therefore	the modified taxable	income on line 8	is 107,400. Subtracting
the 107,400 from the 200,000 results in 92,600 being entered on line 9.				The
difference	of the 100,000 line	2 amount and the	80,000 is 20,000.	This

would be added to the 92,600 and therefore 112,600 is available to be carried to 2021.

500- NOL (Rev. 12/31/20)

Please note that the amount from line 9 of the year directly preceding the loss year is the amount (if any) that can be carried to the year after the loss year (carryover year). The same adjustments from this schedule must be made to each year in the carryover period to determine the amount that is available to be carried to the next carryover year. For example, a taxpayer has a loss from 2013 which has a two year carryback period. The loss is

carried back to 2011 and

2012

page 2 but not all of the

loss

utilized.

The taxpayer makes

the

adjustments as

required

2011

and 2012

the

Net Operating

Loss Carryover

schedule

the

top

of page 4.

After computing the

amount for 2012

there

positive

amount

line 9

the 2012

column. This amount

can

be carried

to 2014 and the amount used in

2014 should

be listed on the 2014

return not on Form 500-NOL. If not all of the loss

utilized

in 2014,

the taxpayer should make the same adjustments

2014

are

listed

the

Net

Operating

Loss Carryover

schedule

page

4to determine if any loss is available to be carried to 2015. A schedule showing this should be attached to the 2014 return and should not be listed on the Form 500-NOL.

If the loss was carried to a part year or nonresident return, on line 2 of the carryover schedule enter the amount from line 14 schedule 3 of Form 500 for the year it was carried to. For lines 3, 4, and 5, enter amount if related to Georgia Income. For lines 6 and 7, multiply the amount by the ratio on line 9, schedule 3 of Form 500 for the year the loss was carried to.

Part Year and Nonresident Instructions. See instructions on page 4.

➤ PDF File

Form Specifications

Fact Name	Description
Form Purpose	The Georgia Form 500-NOL is used by individuals and fiduciaries to adjust net operating losses for state tax purposes.
Filing Deadline	This form must be filed no later than three years from the due date of the loss year income tax return, including any extensions.
Governing Law	The form is governed by Section 172 of the Internal Revenue Code and Georgia Code Section 48-1-2.
Attachment Requirements	Taxpayers must attach a complete copy of their federal return for the loss year along with other specified documents.

Georgia 500 Nol: Usage Guidelines

Filling out the Georgia Form 500-NOL can seem daunting, but following a clear step-by-step process makes it manageable. This form is essential for individuals and fiduciaries who have experienced a net operating loss and wish to adjust their tax filings accordingly. To ensure accuracy, gather all necessary documents before starting.

Obtain a copy of your Federal return for the loss year. This will be essential for reference.
Write your Social Security Number (SSN) or Federal Employer Identification Number (FEIN) at the top of the form.
Fill in your personal information: first name, middle initial, last name, and suffix. Repeat this for your spouse if applicable.
Provide your address, including any apartment or suite number. If your address has changed, check the appropriate box.
Indicate the taxable year of the net operating loss. Specify whether it’s a calendar year or another year by providing the start and end dates.
Enter the total amount of your net operating loss in the designated space.
Indicate the type of loss you are claiming (normal, casualty, farm, etc.). Fill in the corresponding portion amounts if applicable.
Answer whether the loss is only being carried forward by checking "Yes" or "No."
Proceed to the second page and fill in the tax years for which you are claiming the loss.
Complete the residency and filing status sections, providing the necessary details for each tax year.
Calculate your federal adjusted gross income and make any necessary Georgia adjustments as instructed.
Follow the calculations for deductions, exemptions, and taxable income as outlined on the form.
Complete the income tax and credits sections, ensuring all calculations are accurate.
Sign and date the form, including your spouse’s signature if filing jointly.
Attach all required documents, including a complete copy of your Federal return and any additional forms specified.
Mail the completed form and attachments to the Georgia Department of Revenue Processing Center at the provided address.

After submitting the form, be prepared to wait for a response from the Georgia Department of Revenue. They may take up to 90 days to review your application and issue any refunds or credits based on your net operating loss claim. Keep a copy of your submission for your records.

Your Questions, Answered

What is the Georgia Form 500-NOL?

The Georgia Form 500-NOL is used by individuals and fiduciaries to report a net operating loss (NOL) adjustment. This form allows taxpayers to claim a refund of taxes by carrying back a net operating loss to prior tax years or carrying it forward to offset future income. It is essential to file this form within three years from the due date of the loss year’s income tax return, including any extensions.

Who should file the Georgia Form 500-NOL?

Any individual or fiduciary who has experienced a net operating loss and wishes to adjust their tax liability should file this form. This includes taxpayers who have losses from normal business operations, casualty losses, or farm losses. If you are unsure whether you qualify, it is advisable to consult a tax professional.

What information do I need to complete the form?

To complete the Georgia Form 500-NOL, you will need your Social Security Number (SSN) or Federal Employer Identification Number (FEIN), details about your net operating loss, and a complete copy of your federal tax return for the loss year. Additionally, you should provide any relevant schedules and forms that support your claim, including copies of your federal returns for the carryback years.

What happens if I only want to carry the loss forward?

If you decide to carry the loss forward without carrying it back, you still need to file the Georgia Form 500-NOL by the due date of the loss year return. This is necessary to establish the NOL in the Department’s system. Make sure to complete all applicable lines on the form to avoid any issues with your application.

Are there specific instructions for part-year residents and nonresidents?

Yes, part-year residents and nonresidents must follow specific instructions when filling out the form. You should complete the designated sections that apply to your residency status and ensure that you calculate your Georgia adjusted gross income correctly. If you are carrying a loss to a part-year or nonresident return, additional calculations will be necessary to determine the appropriate amounts.

What should I attach to the form when I file it?

When submitting the Georgia Form 500-NOL, you need to attach several documents. These include a copy of your federal application for the net operating loss, your federal return for the loss year, and any federal returns for the carryback years. Additionally, include copies of your Georgia returns for the carryback or carryforward years and the Georgia Form 500 for the loss year. Ensure all required forms are attached to avoid disallowance of your application.

What if I have both a federal and a Georgia NOL?

If you have both a federal and a Georgia NOL, it is important to remember that they are computed separately. You may have a federal NOL but not a Georgia NOL. When filing your Form 500-NOL, be sure to follow Georgia-specific rules and adjustments, as they can differ from federal guidelines. This ensures that your claim is accurate and compliant with state regulations.

Common mistakes

Incomplete Federal Return Attachment: Many individuals forget to attach a complete copy of their federal return for the loss year. This omission can lead to delays or disallowance of the NOL claim.
Incorrect Tax Year Selection: Some taxpayers mistakenly select the wrong taxable year for the net operating loss. Ensure that the year corresponds accurately with the loss incurred.
Failure to Specify Type of Loss: It’s essential to correctly identify the type of loss—normal, casualty, or farm loss. Failing to do so can result in processing issues.
Neglecting to Check Residency Status: Taxpayers often overlook the residency status section. This is crucial, especially for part-year residents or nonresidents, as it affects the calculations.
Errors in Calculating the NOL Amount: Many individuals miscalculate the net operating loss amount. Double-check all figures to ensure accuracy before submission.

Documents used along the form

When dealing with the Georgia Form 500-NOL, several other forms and documents are often required to ensure a complete and accurate submission. Each of these documents serves a specific purpose in the process of claiming a net operating loss and may help facilitate the review and approval of your claim. Below is a list of commonly used forms alongside the Georgia 500-NOL.

Georgia Form 500: This is the standard individual income tax return for Georgia residents. It provides a comprehensive overview of your income, deductions, and tax liability for the year.
Federal Form 1040: This is the individual income tax return used by U.S. taxpayers. A complete copy is necessary to establish your federal adjusted gross income and to support your claim for a net operating loss.
Federal Form 1045: This form is used to apply for a quick refund of taxes due to a net operating loss. It can expedite the process of receiving a refund from the IRS.
Georgia Form 500X: This is the amended individual income tax return for Georgia. It is used to correct errors on a previously filed Form 500, which may be relevant if adjustments to your income or deductions are necessary.
Federal Schedule A: This is the itemized deduction form that allows taxpayers to list eligible expenses. It can be important for determining your taxable income and overall tax liability.
Federal Schedule D: This form reports capital gains and losses. If your net operating loss is related to capital transactions, this form will be essential in providing accurate information.
Georgia Schedule 3: This schedule is used to report Georgia adjustments to income. It helps ensure that the calculations for your Georgia adjusted gross income are accurate.
Georgia Form 500-NOL Carryover Schedule: This document details the amounts of net operating losses that are being carried forward or back. It is crucial for tracking how much of your loss can be applied to future tax years.

Submitting these forms alongside the Georgia Form 500-NOL helps to create a clear picture of your financial situation. Ensure that all required documentation is complete and accurate to facilitate the processing of your claim. This can make a significant difference in receiving the benefits you are entitled to during difficult financial times.

Similar forms

The Georgia Form 500-NOL is a specific document used for reporting net operating losses. It has similarities to several other forms that serve related purposes in tax reporting. Below is a list of documents that share characteristics with the Georgia Form 500-NOL:

IRS Form 1040: This is the standard individual income tax return form. Like the 500-NOL, it requires detailed income reporting and can incorporate adjustments for losses.
IRS Form 1045: This form is used to apply for a quick refund of taxes due to a net operating loss. Similar to the 500-NOL, it allows taxpayers to carry back losses to prior years.
IRS Form 1120: This is the corporate income tax return. Corporations use it to report income and losses, similar to how individuals report losses on the 500-NOL.
IRS Form 1120S: This form is for S corporations and allows them to report income, losses, and deductions. It parallels the 500-NOL in its treatment of net operating losses.
IRS Schedule A: This form allows for itemized deductions on the individual return. Both forms require careful documentation of deductions and adjustments.
Georgia Form 500: This is the state income tax return for individuals. Like the 500-NOL, it is used to report income and can include adjustments for losses.
IRS Form 8862: This form is used to claim the Earned Income Credit after it was disallowed. It shares the need for detailed income information, similar to the 500-NOL.
IRS Form 8880: This form is for claiming the Retirement Savings Contributions Credit. Both forms require careful reporting of income and adjustments.
IRS Form 4562: This form is used to report depreciation and amortization. It is similar in that it allows for adjustments that can affect taxable income.

Each of these forms serves a specific purpose but shares commonalities with the Georgia Form 500-NOL in terms of reporting income, losses, and adjustments. Understanding these similarities can help in navigating tax reporting requirements effectively.

Dos and Don'ts

When filling out the Georgia Form 500-NOL, it’s important to follow specific guidelines to ensure your application is processed smoothly. Here’s a list of things you should and shouldn’t do:

Do attach a complete copy of your federal return for the loss year.
Do accurately fill in your Social Security Number (SSN) or Federal Employer Identification Number (FEIN).
Do check the box if your address has changed since your last filing.
Do specify the type of loss you are claiming, whether it’s a normal, casualty, or farm loss.
Do ensure that all required forms are attached, including any federal applications for NOL adjustments.

Don't leave any sections blank; incomplete forms may be disallowed.
Don't forget to sign and date the form before submitting it.
Don't use Form 500X to carry back a NOL; this form is specifically for NOL adjustments.
Don't assume that federal and Georgia NOLs are the same; they must be computed separately.

By following these guidelines, you can help ensure that your Form 500-NOL is completed correctly, which may expedite the processing of your application.

Misconceptions

Here are ten common misconceptions about the Georgia Form 500-NOL, along with clarifications:

Misconception 1: The 500-NOL form is only for businesses.

This form is applicable to both individuals and fiduciaries who have incurred a net operating loss.

Misconception 2: You don't need to attach your federal return.

A complete copy of your federal return for the loss year must be attached to the 500-NOL form.

Misconception 3: You can carry back any net operating loss for an unlimited time.

Generally, the carryback period is limited to two years, with specific exceptions for certain types of losses.

Misconception 4: You can claim a Georgia NOL without a federal NOL.

It is possible to have a Georgia NOL even if there is no federal NOL, but you must compute it separately.

Misconception 5: You don’t need to file the 500-NOL if you are only carrying the loss forward.

The 500-NOL form is required even if you are only carrying the loss forward to establish it in the Department’s system.

Misconception 6: There are no limits on how much of the NOL can offset taxable income.

For losses incurred in years after December 31, 2017, the NOL can only offset up to 80% of Georgia taxable net income.

Misconception 7: You can use the 500-NOL to amend prior year returns.

The 500-NOL is specifically for claiming a net operating loss adjustment, not for amending prior returns.

Misconception 8: Filing the 500-NOL guarantees a tax refund.

A refund is not guaranteed; it depends on the calculations and whether the loss can be applied to previous tax liabilities.

Misconception 9: You can ignore the specific instructions on how to calculate Georgia NOL.

It is crucial to follow the specific instructions provided for calculating Georgia NOL, as they differ from federal guidelines.

Misconception 10: You can submit the form anytime after the loss year.

The 500-NOL form must be filed no later than three years from the due date of the loss year income tax return.

Key takeaways

Understanding the Georgia Form 500-NOL is crucial for individuals and fiduciaries seeking to adjust their net operating loss (NOL) for tax purposes. Here are key takeaways regarding the completion and use of this form:

The form must be submitted along with a complete copy of the federal return for the loss year. This is essential for validating the NOL claim.
Taxpayers need to specify the type of loss, such as normal or casualty loss, and indicate whether the loss is being carried forward or back. This information directly impacts the calculation of tax liabilities.
It is important to follow the instructions carefully, especially regarding the adjustments required by the Internal Revenue Code (IRC). Failure to do so may lead to disallowance of the NOL.
Be mindful of the deadlines. The form must be filed no later than three years from the due date of the loss year return. Missing this deadline could forfeit the opportunity to claim the NOL adjustment.