Instruction Year
2023
For tax years beginning on or after January 1, 2023, Iowa will incorporate the federal net operating loss and will no longer allow an Iowa-specific net operating loss. Taxpayers must use Schedule 1 to carry forward any pre-2023 Iowa net operating loss and must use Schedule 1 to reduce federal taxable income by any pre-2023 federal net operating loss carryforward. Taxpayers must use the new IA 124 to calculate pre-2023 federal net operating loss carryforwards to add back and pre-2023 Iowa net operating loss carryforwards to deduct against taxable income.
View additional information related to the 3-year carryback period for Iowa NOLs incurred by individuals during the COVID-19 Pandemic