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Arthur Rubin
Arthur Rubin, Tax Preparer
Category: Tax
Satisfied Customers: 1493
Experience:  22 years of tax preparation experience, including individual, trust, and estate returns.
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For 2011, my itemized deductions exceeds the incomes taxes

Customer Question

For 2011, my itemized deductions exceeds the incomes taxes I paid. Can I apply the overage to my tax liabiblity for 2012, or does the excess deduction kind of disappear? Thanks for your help. Phil XXXX
Submitted: 4 years ago.
Category: Tax
Expert:  Arthur Rubin replied 4 years ago.

Arthur Rubin :

I'm afraid it depends on the source of the itemized deductions.

Arthur Rubin :

In general, if both your net income (AGI less itemized deductions) and your "business net income" ("business" income less "business" deductions) are both negative, the lesser loss can be carried over as a Net Operating Loss (NOL).

Arthur Rubin :

For Federal purposes, the default is that the loss can be carried back 2 years, and then forward for some number of years until used up, although you can elect (on a timely filed return) to forgo the carryback.