Form 461, Limitation on Business Losses, is the tax form used for calculating the excess business lost to report on a noncorporate tax return. When you’re trying to figure out the excess business loss, use Form 461 to compute it and enter it on your federal income tax return.
Although Form 461 doesn’t serve any other purpose than what’s mentioned above, there are still a few things that you should know.
Understand if you need to file
File Form 461 if you have excess business loss. There are several ways that you can have an excess loss on your business. But, the most common reason is that the deductions claimed for your business exceed gross income and gains attributable to your business operations. It’s as easy as that.
If the above applies to you, make sure to file Form 461 and attach it to your noncorporate tax return.
How to file 461?
Since you need to attach Form 461 to your tax return, how you’re going to file the form depends largely on how you choose to file your federal tax return. If you’re e-filing, it won’t help to file a paper 461 and try to send it to the IRS to process it.
Having said that, you must file Form 461 electronically if that’s how you file your federal tax return.
However, for those filing a paper federal income tax return, you can simply fill out the online PDF version of the form and attach it to your tax return. Start filling out 461 below.
Form 461 PDF 2023 - 2024
Update: The Internal Revenue Service hasn’t released Form 461 yet. As soon as it’s out, we’ll update this page.