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ter on line 9 the taxable income from

over the loss on your 2015 Schedule D,

loss carryover to 2016. John adds the

your 2015 tax return (or as previously

line 21. If you had any NOL carrybacks

$3,000 from Schedule D, line 21, and

adjusted by the IRS or corrected on an

to 2015, be sure you refigured your 2015

the $7,000 capital loss carryover. He

amended return). But if that amount is

capital loss carryover to 2016.

subtracts from the $10,000 result the

zero or less, complete the worksheet be-

$7,000 loss on his Schedule D, line 16,

Line 3. If you had an NOL for 2015,

low to figure the amount to enter on

and enters $3,000 on line 2 of the work-

enter the amount of that NOL from the

line 9.

sheet.

2015 Form 1045, Schedule A, line 25,

If you didn't file a tax return for

you filed with Form 1045 or Form

John enters $20,600 on line 3 of the

2015, use the amount you would have

1040X. If you didn't have an NOL for

worksheet, the 2015 NOL from his 2015

reported as your taxable income had you

2015, enter the portion, if any, of the

Form 1045, Schedule A, line 25. Of the

been required to file a tax return. Be

NOL carryovers and carrybacks to 2015

$33,900 negative taxable income, the

sure to keep all your records for 2015

that weren't used in 2015 and were car-

$4,000 deduction for exemptions, the

until at least 3 years after April 17, 2018

ried to years after 2015.

$3,000 capital loss deduction, and his

(or the date you file your 2017 tax re-

$6,300 standard deduction weren't al-

Example. John Farmington didn't

turn, if later).

lowed in figuring the NOL. John had a

use income averaging for 2014, 2015, or

$20,600 loss on his 2015 Schedule F,

2016. The taxable income before sub-

Instructions for 2015 Taxable

the only other item on his 2015 tax re-

tracting exemptions on his 2015 Form

Income Worksheet

turn.

1040, line 41, is a negative $29,900. A

John enters $23,600 (the $3,000

deduction for exemptions of $4,000 is

Line 2. Any net capital loss deduction

line 2 amount plus the $20,600 line 3

shown on line 42, and line 43, taxable

on your 2015 Schedule D, line 21, isn't

amount) on line 4 and $10,300 (the

income, is limited to zero. John subtracts

allowed for income averaging purposes

$33,900 line 1 amount minus the

from the $29,900 loss the $4,000 deduc-

to the extent it didn't reduce your capital

$23,600 line 4 amount) on line 5. He en-

tion for exemptions. The result is a neg-

loss carryover to 2016. This could hap-

ters $10,300 as a negative amount on

ative $33,900, John's 2015 taxable in-

pen if the taxable income before sub-

Schedule J, line 9. He enters $6,000 on

come, which he enters as a positive

tracting exemptions—shown on your

Schedule J, line 10, and a negative

amount on line 1 of the 2015 Taxable

2015 Form 1040, line 41, or your 2015

$4,300 on Schedule J, line 11. If he uses

Income Worksheet.

Form 1040NR, line 39 (or as previously

Schedule J to figure his tax for 2018, he

When John filed his 2015 tax return,

adjusted)—was less than zero. Enter on

will enter the negative $4,300 amount

he had a $3,000 net capital loss deduc-

line 2 the amount by which your 2015

on his 2018 Schedule J as his 2015 taxa-

tion on Schedule D, line 21 (which was

capital loss carryover to 2016 (the sum

ble income for income averaging purpo-

also entered on Form 1040, line 13), and

of your short- and long-term capital loss

ses.

a $7,000 loss on Schedule D, line 16 (as

carryovers) exceeds the excess of the

adjusted). He also had a $7,000 capital

loss on your 2015 Schedule D, line 16,

2015 Taxable Income Worksheet—Line 9

Keep for Your Records

Complete this worksheet if you didn't use Schedule J to figure your tax for 2016 and your 2015 taxable income was zero or less. See

the instructions above before completing this worksheet.

1. Figure the taxable income from your 2015 tax return (or as previously adjusted) without limiting it to

zero. If you had an NOL for 2015, don't include any NOL carryovers or carrybacks to 2015. Enter the

result as a positive amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. If there is a loss on your 2015 Schedule D, line 21, add that loss (as a positive

amount) and your 2015 capital loss carryover to 2016. Subtract from that sum the

amount of the loss on your 2015 Schedule D, line 16, and enter the result . . . . . . . .

3. If you had an NOL for 2015, enter it as a positive amount. Otherwise, enter as a

positive amount the portion, if any, of the NOL carryovers and carrybacks to 2015

that weren't used in 2015 and were carried to years after 2015 . . . . . . . . . . . . . . . . .

4. Add lines 2 and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 9 . . . . . . . . . . . . . . .

The 2015 Tax Rate Schedules be-

The 2015 Schedule D Tax Work-

Line 12

low;

sheet in the 2015 Schedule D instruc-

The 2015 Qualified Dividends and

tions (but use the 2015 Tax Rate Sched-

If line 11 is zero or less, enter -0- on

line 12. Otherwise, figure the tax on the

Capital Gain Tax Worksheet, later;

ules below when figuring the tax on the