Form NOL-85A is an Alabama Department of Revenue worksheet used in connection with net operating loss (NOL) deductions for individuals, primarily to compute the Alabama-source portion of a taxpayer’s modified taxable income when an NOL is subject to Alabama limitation rules. It is not a standalone tax return form; instead, it functions as a supporting computation schedule used with Alabama Form 40 or Form 40NR when NOL deductions must be apportioned between Alabama and non-Alabama income for nonresidents and part-year residents, as applicable under Alabama NOL conformity rules.
PART III – Modified Adjusted Gross Income Percentage
This section is completed only by nonresidents. It calculates the percentage of Alabama-sourced income relative to total income from all sources after modifications.
- Line 18: Enter the Modified Adjusted Gross Income from Alabama sources. This amount is taken from Line 10, Part II of the form.
- Line 19: Calculate the percentage by dividing the amount on Line 18 by the amount on Line 17 (Total Modified Adjusted Gross Income from all sources). Enter the result as a percentage, not exceeding 100%.
Source:
Form NOL-85A (Alabama Department of Revenue)
Form 40 Instructions (Alabama Department of Revenue)
Disclaimer: Always verify details with the most current Federal or State Department of Revenue Forms and Instructions. Tax rules may change annually, and professional advice from a CPA or tax attorney is recommended for complex situations.