Question 4 Question 5 Question 6 In 2015, Phil incurred an NOL, carried his 2015

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In 2015, Phil incurred an NOL, carried his 2015 NOL back to 2013, was able to deduct a portion of 2015 NOL in 2013, and calculated an NOL carryover of ($20,041) on his Form 1045, Schedule B.
Phil is now carrying over his unused 2015 NOL carryover to deduct in 2014. In 2014, Phil filed single, had no dependents, took the standard deduction, and his AGI reported on his Form 1040, line 37 was $22,173. Phil's 2014 income tax was $1,350 and his 2014 self-employment tax was $2,840.
Using Form 1045, pages 1 and 2, carry Phil's unused 2015 NOL over to 2014 and calculate Phil's refund. Section 2 Question 4 of 15. In 2015, Phil incurred an NOL, carried his 2015 NOL back to 2013, was able to deduct a portion of 2015 NOL in 2013, and calculated an NOL carryover of ($20,041) on his Form 1045, Schedule B. Phil is now carrying over his unused 2015 NOL caryover to deduct in 2014. In 2014, Phil filed single, had no dependents, took the standard deduction, and his AGI reported on his Fom 1040, line 37 was $22,173. Phil's 2014 income tax was $1,350 and his 2014 self-employment tax was $2,840 Using Form 1046, papes 1 and 2, carry Phil's unused 2015 NOL over to 2014 and calculate Phil's refund. O 5274 $953 $1,350 O $3,889 Mark for follow up Question 5 of 15. In 2015, Chester calculated a ($23,497) NOL on his Form 1045, Schedule A. Chester wants to carry back his 2015 NOL to 2013. In 2013, Chester filed single, had no dependents, took the standard deduction, and his AGI reported on his Form 1040, linc 37 was $32,956. Chester's 2013 income tax waS $3,000 and his 2013 self-employment tax was $4,133. Using Form 1045, papes 1 and 2, carry back Chester's 2015 NOL to 2013 and calculate his refund. O $3,000 O $3,075 O $4.133 $5.797

Explanation / Answer

1. Calculation of taxable income in the year 2014.

AGI = $22,173

Standard Deduction as per IRS for single, having no dependent is $6,200 for the year 2014.

Taxable income = $22713 - 6,200 = $15,973

Net taxable income for the year 2014 after offset of NOL = $15,973 - $20,041 = -$4,068

Income tax paid of $1,350 in 2014 is fully refundable to Phil due to offset of NOL. However, self employment tax of $2,840 is not refundable as the same does not fall under the purview of NOL offset.

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