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2022 Form 500NOLD Instructions
Corporation Application for Refund Carryback of Net Operating Loss

For a capital loss carryback, file an amended Virginia corporation return using Form 500 and Schedule 500ADJ.

Net Operating Loss Deduction Computations Thus, if the federal net operating loss is fully used in carryback
or carryover to 1 year, the entire net amount of additions and
There is no Virginia net operating loss available for carryback
subtractions will be applied to such year. If, however, the
or carryover. However, since the starting point for the Virginia
federal net operating loss is partially used in each of several
corporation income tax is federal taxable income (Form 500,
years, the net amount of additions and subtractions will be
Line 1), there is a statutory provision for net operating loss
applied in the same ratio to the applicable years.
deductions to the extent that such losses are included in
federal taxable income. Federal Extended NOL Carryback Provisions
Fixed Date Conformity Update for 2022 Virginia’s deconformity from the extended NOL carryback
period provisions in former IRC § 172(b)(1)(H) and Section
Virginia’s date of conformity with the Internal Revenue Code
2303 of the CARES Act for certain NOLs generated in 2008,
(IRC) was advanced from December 31, 2020, to December
2009, 2018, 2019, and 2020 does not apply to any other
31, 2021, subject to certain exceptions. Information regarding
provision of the IRC that provides for an extended NOL
changes required as a result of the 2022 General Assembly
carryback period. Taxpayers that carry back NOLs for federal
Session are provided in Tax Bulletin 22-1 which is available
income tax purposes pursuant to any other provision of the
on the Department’s website, www.tax.virginia.gov.
IRC may do so without making adjustment when computing
If additional legislation is enacted that results in changes their Virginia taxable income.
to the IRC for the 2022 taxable year, taxpayers may need
The federal net operating loss deduction may be used only
to make adjustments to their Virginia returns that are not
to reduce federal taxable income, and a federal net operating
described in these instructions. Information about any such
loss deduction cannot create or increase a federal operating
adjustments will be posted on the Department’s website at
loss. For a copy of the Virginia regulations, visit the Laws,
www.tax.virginia.gov.
Rules, & Decisions page on the Department’s website and
Virginia conforms to the changes made to the net operating click on “Virginia Law,” or write to the Virginia Department
loss (NOL) deduction by the federal Tax Cuts and Jobs Act, of Taxation, P.O. Box 1317, Richmond, VA 23218-1317 or
including the general repeal of NOL carrybacks. For taxable call (804) 367-8037.
years ending after December 31, 2017, only NOLs from
certain farming losses and the losses incurred by certain (804) 367-8037 or write
For additional information, call
to the
insurance companies may be carried back as set forth in Virginia Department of Taxation, P.O. Box 1115,
IRC § 172(b). No other types of NOLs may be carried back Richmond, VA 23218-1115. You can download most Virginia
income tax forms at
for such taxable years. www.tax.virginia.gov.
Virginia will continue to deconform from the following: bonus NOTE: Companies that apportion income — If federal taxable
income is reduced to zero, allocable income is not considered.
depreciation allowed for certain assets under federal law;
the five-year carryback of certain federal net operating loss Consolidated and combined filers must compute the amount
(NOL) deductions generated in the 2008 or 2009 taxable of net operating loss deduction according to 23 Virginia
years; the federal income treatment of applicable high yield Administrative Code (VAC) 10-120-320 through 10-120-327.
discount obligations; and the federal income tax treatment To avoid processing delays, mail Form 500NOLD to the
of cancellation of debt income realized in connection with address shown on the form in the upper left corner. Do
certain business debts. In addition, Virginia will continue not mail with your corporate return. Always enclose a
to deconform from the following temporary changes made copy of federal Form 1139 or Form 1120X. If neither of the
by the Coronavirus Aid, Relief, and Economic Security federal forms were filed, provide a detailed explanation
(“CARES”) Act: suspension of certain NOL limitations for of the adjustment.
Taxable Years 2018, 2019, and 2020 and increasing the
business interest limitation for Taxable Year 2019 and 2020. Line Instructions
Please see Tax Bulletin 21-4 for more information. 1. Enter the taxable year for which the loss was sustained.
Since federal taxable income must be modified for Virginia Use YYYY format for the actual taxable year. Ex: 2021
additions and subtractions, the additions and subtractions of or 2022. Do not express in ending month/year (MM/YY)
the loss year follow the federal loss to the year the loss is used. format. For fiscal year filers, the actual taxable year is
year on the return being filed (year of the beginning
period of the fiscal year).

Va. Dept. of Taxation 2601199 Rev. 09/22 Page 1

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2. (a) Enter the amount of federal net operating loss. tax deductions related to applicable high yield dis-
(b) Enter the net Virginia supplemental fixed date con- count obligations under IRC § 163(e)(5)(F), and (4)
formity modifications (additions and subtractions). Other changes not listed.
Fixed date conformity items to be included are: (1) Refer to Virginia Tax Bulletin 22-1 which is available
Bonus depreciation for assets under IRC § 168(k), on the Department’s website, www.tax.virginia.gov,
(2) Disposed assets that received the special bonus for information regarding fixed date conformity ad-
depreciation, (3) Income tax deductions related to justments required as a result of the 2022 General
applicable high yield discount obligations under IRC Assembly Session. Enclose a schedule and expla-
§ 163(e)(5)(F), and (4) Other changes not listed. nation of such modifications.
Refer to Tax Bulletin 22-1 which is available on (c) Enter the fixed date conformity federal taxable
the Department’s website, www.tax.virginia.gov, income for Virginia purposes. [Line 5(a) plus or
for information regarding fixed date conformity minus Line 5(b)].
adjustments required as a result of the 2022 Enter the amount of net operating loss (after adjustment
6.
General Assembly Session. Enclose a schedule for fixed date conformity as shown on Line 2(c)). Do not
and explanation of such modifications. exceed the amount of income shown on Line 5(c). Any
(c) Enter the amount of Virginia fixed date conformity portion of Line 2(c) that is not deducted on this Form
NOL available for carry back. [Line 2(a) plus or 500NOLD may be available for deduction in a taxable
minus Line 2(b)]. year subsequent to the year of loss.
3. Enter the net amount of the Virginia additions and 7. Subtract Line 6 from Line 5(c).
subtractions from the loss year return. DO NOT include Divide Line 6 by Line 2(c). Compute percentage to
8.
fixed date conformity modifications. The amount of fixed 1 decimal place.
date conformity additions and subtractions claimed on
Schedules 500ADJ and 500ADJS should be excluded 9. Enter the net additions and subtractions from the
from this amount. If modifications for cancellation taxable year entered on Line 4. DO NOT include fixed
of debt income or the domestic production activities date conformity modifications. The amount of fixed
deduction were claimed on Schedule 500ADJ as other date conformity additions and subtractions claimed on
subtractions or additions to federal taxable income, these Schedule 500ADJ should be excluded from this amount.
should also be excluded from the amount entered on If modifications for cancellation of debt income or the
this line because these are also fixed date conformity domestic production activities deduction were claimed on
modifications. For Taxable Year 2004 and beyond, if you Schedule 500ADJ as other subtractions from or additions
made any payments to an affiliated corporation or related to federal taxable income, these should also be excluded
individual or other related entity for interest, royalties, or from the amount entered on this line because these are
other expenses related to intangible property, include also fixed date conformity modifications. For Taxable
with other modifications. If the net amount is positive, it Year 2004 and beyond, if you made any payments to
may not exceed the amount of the loss on Line 2. an affiliated corporation or related individual or other
related entity for interest, royalties or other expenses
4. Enter the taxable year to which the loss was taken. Enter related to intangible property, include the modification
in YYYY format for the taxable year. Ex: 2019 or 2020. here. Include any prior modifications from NOLDs that
For fiscal year filers, it is the year of the return being were previously absorbed.
amended (year of beginning period of fiscal year). This
must correspond to the same year that the loss was 10. Multiply Line 3 by the percentage on Line 8.
taken for federal tax purposes (unless a 5-year carryback 11. Add Lines 7, 9, and 10. If the corporation must apportion
was used for federal purposes pursuant to former IRC their income (Schedule 500A filers), complete Lines 12
§ 172(b)(1)(H) or Section 2303(b) of the CARES Act in through 17. If not, go to Line 18 for the tax computation.
which case the years will differ since Virginia deconforms
12. Enter the total allocable income from Schedule 500A for
from these federal carryback provisions. The years
the year shown on Line 4. If federal taxable income has
may also differ due to Virginia’s deconformity from the
been reduced to zero (Line 7), make no entry as there
loss limitation suspension under Section 2303(a) of
is no income to be allocated.
the CARES Act), or would be required to be taken if no
federal carryback is applicable. 13. Subtract Line 12 from Line 11.
5. (a) Enter the federal taxable income for the year being 14. Enter the apportionment percentage from Schedule 500A
amended. for the year shown on Line 4.
(b) Enter the net Virginia fixed date conformity modi- 15. Multiply the amount on Line 13 by the percentage on
fications for the year(s) being amended (additions Line 14.
and subtractions). Fixed date conformity items to 16. Enter the income allocated to Virginia. If federal taxable
be included are: (1) Special bonus depreciation for income has been reduced to zero (Line 7), make no entry
assets under IRC § 168(k), (2) Disposed asset that as there is no income to be allocated.
received the special bonus depreciation, (3) Income
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17. Add Lines 15 and 16. Reminder: Due to the reduced tax liability in carryback
18. Multiply the amount on Line 11 or Line 17 by 6% and and carryforward years, the credits previously claimed
enter the result. in those years may need to be adjusted as well as the
credit carryover amounts. An amended Form 500 should
19. (a) Enter the nonrefundable credits from any Telecom- be filed indicating the change in the amount of credits
munications Companies Income Tax Credit along claimed and the corrected carryover amounts. Enclose
with any other nonrefundable credits reported on a revised Schedule 500CR for the carryback year(s) to
Schedule 500CR. show the corrected credit and carryover amount after the
(b) Enter any refundable credits from the Coalfield NOL carryback has been applied. You must also enclose
Employment Enhancement Credit along with any a revised Schedule 500CR to the amended returns
other refundable credits reported on Schedule filed to report the changes to the credit(s) claimed or
500CR. Check the Coalfield Credit Claimed box carryover amount resulting from the NOL carryback.
in the upper left corner on Form 500NOLD if a 20. Subtract Line 19(c) from Line 18 and enter the result.
refundable Coalfield Employment Enhancement Tax
Credit was claimed in 2022. 21. Enter the amount of tax previously paid for the year
shown on Line 4.
(c) Enter the total of Line 19(a) and Line 19(b).
22. Subtract Line 20 from Line 21. This is the refund amount.

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