Net Operating Losses

Instruction Year

Iowa net operating losses may be carried back two years, except for losses incurred in Presidentially-declared disaster areas (3-year carryback) and losses incurred by individuals engaged in farming (5-year carryback). See IA 123 (pdf) for further guidance regarding carrybacks and carryforwards.

Important Notice: Iowa did not conform with the federal changes to the carryback rules provided by the Tax Cuts and Jobs Act of 2017.

The federal Tax Cuts and Jobs Act of 2017 eliminated federal net operating loss carrybacks for taxpayers other than certain farmers or insurance companies for tax years ending on or after January 1, 2018. Taxpayers who are not permitted to carry back a federal net operating loss have not elected to waive a federal carryback period, and may not waive the applicable Iowa carryback period on their Iowa net operating loss.

See line 24.