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IRS.gov Website
Instructions for Schedule J (Form 1040)
taxmap/instr/i1040sj-009.htm#en_us_publink1000274220

Line 13(p11)

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If you used Schedule J to figure your tax for 2015 (that is, you entered the amount from the 2015 Schedule J, line 23, on your 2015 Form 1040, line 44, on your 2015 Form 1040NR, line 42, or on Form 1040X for 2015), enter on line 13 the amount from your 2015 Schedule J, line 3.
If you didn't use Schedule J to figure your tax for 2015, enter on line 13 the taxable income from your 2015 tax return (or as previously adjusted by the IRS or corrected on an amended return). But if that amount is zero or less, complete the worksheet below to figure the amount to enter on line 13.
If you didn't file a tax return for 2015, use the amount you would have reported as your taxable income had you been required to file a tax return. Be sure to keep all your records for 2015 until at least 3 years after April 18, 2017 (or the date you file your 2016 tax return, if later).
taxmap/instr/i1040sj-009.htm#en_us_publink1000274221

Instructions for 2015 Taxable Income Worksheet(p11)

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taxmap/instr/i1040sj-009.htm#en_us_publink1000274222
Line 2.(p11)
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Any net capital loss deduction on your 2015 Schedule D, line 21, isn't allowed for income averaging purposes to the extent it didn't reduce your capital loss carryover to 2016. This could happen if the taxable income before subtracting exemptions—shown on your 2015 Form 1040, line 41, or your 2015 Form 1040NR, line 39 (or as previously adjusted)—was less than zero. Enter on line 2 the amount by which your 2015 capital loss carryover to 2016 (the sum of your short- and long-term capital loss carryovers) exceeds the excess of the loss on your 2015 Schedule D, line 16, over the loss on your 2015 Schedule D, line 21.
taxmap/instr/i1040sj-009.htm#en_us_publink1000274223
Line 3.(p11)
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If you had an NOL for 2015, enter the amount of that NOL from the 2015 Form 1045, Schedule A, line 25, you filed with Form 1045 or Form 1040X. If you didn't have an NOL for 2015, enter the portion, if any, of the NOL carryovers and carrybacks to 2015 that weren't used in 2015 and were carried to years after 2015.
taxmap/instr/i1040sj-009.htm#en_us_publink1000274224
Example.(p11)
John Farmington didn't use income averaging for 2013, 2014, or 2015. The taxable income before subtracting exemptions on his 2015 Form 1040, line 41, is a negative $1,000. This amount includes an NOL deduction on his 2015 Form 1040, line 21, of $1,250. The $1,250 is the portion of the 2014 NOL that was remaining from 2013 to be carried to 2015. See the examples earlier. A deduction for exemptions of $4,000 is shown on Form 1040, line 42, and line 43, taxable income, is limited to zero. John doesn't have an NOL for 2015. John subtracts from the $1,000 negative amount on Form 1040, line 41, the $4,000 deduction for exemptions. The result is a negative $5,000, John's 2015 taxable income, which he enters as a positive amount on line 1 of the 2015 Taxable Income Worksheet.
When John filed his 2015 tax return, he had a $3,000 net capital loss deduction on Schedule D, line 21 (which was also entered on Form 1040, line 13), a $7,000 loss on Schedule D, line 16, and a $5,000 capital loss carryover to 2016 (his 2015 capital loss carryover to 2016 was $5,000, not $4,000, because the amount on his Form 1040, line 41, was a negative $1,000). John adds the $3,000 from Schedule D, line 21, and the $5,000 carryover. He subtracts from the $8,000 result the $7,000 loss on his Schedule D, line 16, and enters $1,000 on line 2 of the worksheet.
John enters -0- on line 3 of the worksheet because he doesn't have an NOL for 2015 and didn't have an NOL carryover from 2015 available to carry to 2016 and later years. The NOL deduction for 2015 of $1,250 was reduced to zero because it didn't exceed his modified taxable income of $3,250. Modified taxable income is figured by adding back the $3,000 net capital loss deduction and the $4,000 exemption deduction to negative taxable income (figured without regard to the NOL deduction) of $3,750. John enters $1,000 on line 4 and $4,000 on line 5. He enters $4,000 as a negative amount on Schedule J, line 13. He enters $6,000 on Schedule J, line 14, and $2,000 on Schedule J, line 15. If he uses Schedule J to figure his tax for 2017, he will enter $2,000 on his 2017 Schedule J as his 2015 taxable income for income averaging purposes.
taxmap/instr/i1040sj-009.htm#en_us_publink1000274238
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2015 Taxable Income Worksheet—Line 13
Complete this worksheet if your 2015 taxable income was zero or less. See the instructions above before completing this worksheet.
1.Figure the taxable income from your 2015 tax return (or as previously adjusted) without limiting it to zero. If you had an NOL for 2015, don't include any NOL carryovers or carrybacks to 2015. Enter the result as a positive amount 1. 
2.If there is a loss on your 2015 Schedule D, line 21, add that loss (as a positive amount) and your 2015 capital loss carryover to 2016. Subtract from that sum the amount of the loss on your 2015 Schedule D, line 16, and enter the result 2.   
3.If you had an NOL for 2015, enter it as a positive amount. Otherwise, enter as a positive amount the portion, if any, of the NOL carryovers and carrybacks to 2015 that weren't used in 2015 and were carried to years after 2015 3.   
4.Add lines 2 and 34. 
5.Subtract line 4 from line 1. Enter the result as a negative amount on Schedule J, line 13 5.