I'm filing some old taxes. In 2008 I had an NOL (as calculated on the 2008 1045 form on page 2 Schedule A - NOL). How do I apply this to my 2009 return? I believe this should end up on my 2009 1040 form line 21, but do I attach the 2008 form 1045 to the 2009 return or do I need to fill out a 2009 1045 form for the 2008 loss? Do I need to fill out any other pages outside of the calculation page (page 2) on the 2008 1045 form? My entire 2008 NOL will be used up in 2009. I would like to wave any carryback period from 2008. How do I do this correctly?
State/Country relating to question: New York
You have 6 months from the due date of the return to make an election not to carryback. If you do not make the election with the return, you have to carry it back. You can only carry it forward if you made the election with your return but the deadline for making the choice is gone for 2008.
In the carryback (or carryfoward) year only the page 2 computation is needed.
An amended return will be used to carry back to 2006 and then, if any remains, to 2007.
Amended return is on Form 1040X available at http://www.irs.gov/pub/irs-pdf/f1040x.pdf
See http://www.irs.gov/publications/p536/ar02.html#en_US_2011_publink1000177379 for more details on the carryback.
Please ask if you need clarification.
I've prepared all types of taxes since 1987.
Do I attach the 2008 form 1045 to my 2006 1040x and report the NOL on line 21 of 2006 1040x?
Do I attach the 2008 1045 form to my 2006 1040x return and report the NOL amount on line 21 of that 2006 1040x?
Yes, report the NOL as a negative Other income on the 1040.
Provide the page 2 or a similar computation as support for the computation.
Ask if you need more help.
Thanks. XXXXX have another Question.I have not filed my returns for 2009-2011 which I am taking care of now. In 2009 I have tax liability and in 2010 I have a NOL. Not really concerned with 2011.Since typically an NOL is applied on a 1040x (amended return), can I apply the NOL from 2010 to my 2009 1040 (not amended) return since I have not filed either? I know I can carry back 2 years, but 2008 is also not a gain (as explained in previous question). In short, do I report the 2010 NOL on 2009 1040 line 21 (not 1040x since I never filed).Thanks.
Indeed the 2010 NOL may be applied when filing the 2009 return.
There may be some delay in processing (though it will already be quite slow since these are prior year returns) if you do so as the 2010 NOL will not be present in the system.
It may be a bit quicker and cleaner to file and then amend.
Also, since the 2009 balance due was not paid timely, it is the amount without the NOL carryback that will be subject to interest and penalty from 4/15/2010 as that is the amount that was due for 2009 as of the due date.
For that reason it may also be better to first file the 2009 and later amend to add the NOL carryback.
I see, that makes sense. I guess it makes things a little complicated. I will try to make your head spin a little more as mine currently is.1. So after applying my entire 2008 NOL to my 2006 Return, I now have a refund due to me for 2006. I dont suppose I can apply that 2006 refund to my 2009 tax liability? I did not file my 2006-2007 1040 returns until January 2010. It is my understanding that limitations to refunds are within 3 years of filing the actual return (not of the tax year), so since I filed in 1/2010, I should be eligible for a refund. Is there a way that I could apply the 2006 refund to my 2009 tax liability as that could potentially avoid some interest and penalties?2. Should I submit my 2009 and 2010 returns now and wait until they have been accepted and I have paid taxes due + interest and then file a 2009 1040x? Or could I send in a 2009 1040, 2010 1040 and a 2009 1040x at the same time?
I dont suppose I can apply that 2006 refund to my 2009 tax liability?
No, sorry, there is not a process to apply that amount to 2009 when filing that will reduce any underpayment penalty for the later year. The only process when filing a return is to apply the refund to the next year estimated tax, and that will not give the result you are after.
Should I submit my 2009 and 2010 returns now and wait until they have been accepted ... ?
Either method is about the same. If you do send multiple returns either mail separately (preferably return receipt requested) or put each return in an envelope and those envelopes in a larger envelope to ensure that each return is processed and the clerk at IRS does not mistake the several returns as only one return to be processed.
It could help if the amended return is filed at or near the same time as the original return to include a statement with that amended return indicating the date that the original return was flied in case the original return had not been processed when the amended return is attempted to be processed.
I've been doing income tax preparation since 1987 so my head is now totally unspinnable.
Amazing that your head is not spinning. Well, I think my 1040/1040x issue will be easier to take care of because I am dealing with IRS agent. I will simply mail in both version to her and indicate what the situation is since I actually have someone I can speak to outside of just a mail address I'm sending this to.
Glad to be able to help with the second question, as well.