Federal net operating loss (NOL) deduction

Individuals who have a federal net operating loss (NOL) may be able to carry the loss either forward or back and claim the loss as a deduction for a subsequent or prior tax year. In general, an individual is not required to make any further adjustment on their Colorado return for the NOL deduction claimed on their federal return. However, individuals may need to add back on their Colorado return some or all of the federal NOL deduction claimed if either it was sourced to another state.