Hi and welcome to Just Answer!Your losses while understandable - by themselves will not generate any refund - unless you have other tax liability - for instance from your wages. If you have other taxable income - business losses will be used to offset that income - and reduce your tax liability - so if there were any withholding - you may expect a refund.
If your income is less than deductions - you might have a NOL - net operating loss.See IRS publication 536 - www.irs.gov/pub/irs-pdf/p536.pdfYou can choose not to carry back your NOL. If you make this choice, then you can use your NOL only in the 20-year carryforward period. (This choice means you also choose not to carry back any alternative tax NOL.)To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. This statement must show that you are choosing to waive the carryback period under section 172(b)(3) of the Internal Revenue Code.That will allow you to use 2012 NOL for following years.
Thank you for your response.
Still dont totally understand, since i obviously am not an expert. Is the higher the nol, the higher the refund?
$50,000.00 of the money put into the company was 2 down payments on the company vehicles. The other $15,000.00 was business set up costs, county, lawyer, gas, stocking, rent, power, cable, insurance etc. Its a transportation company. I didnt pay myself much and only had a few jobs before the new year. Was just curious on your further thoughts?
I will help you to understand better - and appreciate you for asking additional questions.Your possible refund is based on the amount of taxes you paid and the amount of your tax liability.If you paid more than your tax liability - you will claim a refund for the difference.However if you have a NOL - it might be applied to different tax years.
enerally, if you have an NOL for a tax year, you must carry back the entire amount of the NOL to the 2 tax years before the NOL year (the carryback period), and then carry forward any remaining NOL for up to 20 years after the NOL year (the carryforward period).If you have a NOL for 2012 - you may carry it back to 2011 and 2010 - your tax liability for these years will be recalculated - you might be eligible for additional refund.However - it is impossible to tell before you woudl prepare your full tax return.
See IRS publication 536 - www.irs.gov/pub/irs-pdf/p536.pdf for details and examples.You will find form 1045 here - www.irs.gov/pub/irs-pdf/f1045.pdfInstructions - www.irs.gov/pub/irs-pdf/i1045.pdfHowever - claiming a NOL is not simple task - and I would recommend to have someone with expertize to helping you.