Net operating loss and capital loss carrybacks

Under certain circumstances, an individual may carry back a net operating loss (NOL) or capital loss to a prior tax year. An individual who carries back an NOL or capital loss for federal income tax purposes must also file an amended Colorado return for the tax year to which the loss is carried back. In general, the statute of limitations for filing the amended return is determined with respect to the year of the loss, not the year to which the loss is carried back. For example, if an individual carries back an NOL from tax year 2020 to tax year 2015, the taxpayer has four years from the due date of the 2020 Colorado return (including extensions) to file the 2015 amended Colorado return to claim a refund for the carryback of the 2020 NOL.