How do I amend my 2012 return to carryback a Net Operating Loss (NOL) from 2013 ?

[rcbartel]

I filed electronically for 2013 taxes with TurboTax online. I elected to carryback my Net Operating Loss (NOL) balance back to 2012. Should I prepare an amended return (1040X) so I can actually fill out an IRS Form 1045 carryback for 2012 ?

[odavid90]

My 2013 Tax return had a net operating loss.  Since my future income will be marginal, I chose the 3 year carryback option for my state, Idaho.  How do I use TurboTax to file amended returns for Idaho for 2011 & 2012 and not change the IRS returns?  I've used TurboTax for all of these returns.

[GaryH · Accepted solution]

With a carryback, the NOL is first carried back to the second tax year preceding the loss year (in this case, 2011), then to the next earliest carryback year (2012).  

If the NOL is not totally used in 2011, the balance would come forward to 2012. 

Individuals may use Form 1045 to claim a quick refund resulting from the carryback of an NOL.  Form 1045 must be filed on or after the date for filing a tax return for the NOL year (2013).  For 1045 and the instructions can be downloaded from www.irs.gov.  

As an alternative to Form 1045, an individual may file an amended return on Form 1040X for each carryback year to claim a refund.  If an amended return is filed, the taxpayer must still attach the NOL computations using the Form 1045 computation schedules.

I would suggest you review the Form 1045 and the instructions at www.irs.gov  (just type in NOL in the IRS search box or Form 1045) and compute the 2011 allowed NOL carryback first and then the remaining, if any, carryback to 2012.  Amended returns have to be mailed in; they cannot be efiled and they should only be mailed in after you have received notice that the IRS has accepted and processed your 2013 return.  The IRS will not begin to process efiled returns until January 31st, so you have some time to work on your carryback calculations.

If you have additional questions on this topic, ask them here please (do not start a new question).

Thanks you for using TurboTax!

[rcbartel]

Can I do an NOL carryback from this year (2013) to only 2012? Am I required to compute 2011 first? Do I use a 2013 Form 1045, or a Form 1045 titled with 2011 and/or 2012? Do I do anything with Turbotax? What if I used IRS FreeFile in 2011 and Turbotax in 2012 and now 2013.

[GaryH]

Yes, you are required to go back to the second oldest year first, which, in this case, is 2011.  I do not believe the 2011 free file return is maintained or retrievable on TurboTax but, hopefully, you kept a print out of it in your personal files, as always recommended.  You can download and print a Form 1045 from <a href="http://www.irs.gov" rel="nofollow" target="_blank">www.irs.gov</a> under forms and publications section.  You will put the year, 2011, on it.  The Form 1045 instructions can also be downloaded from the IRS website.  If you do not use up the entire carryback in 2011, then you will next apply it to 2012.

[rcbartel]

So, do I use 2011 Instructions and 2011 Form 1045 first, then 2012 Instructions and Forms? Do I ever use the 2013 Form 1045? What effect will this have on my previously filed State returns? (In my case, Non Resident NM (2011 / 2012), and non resident MD (2013) ? Can I ask the IRS to do the carryback calculations for me?

[GaryH]

Yes, 2011 first and then 2012 Form 1045.  You do NOT use anything in 2013 because that is the LOSS year.  Losses are not deducted in the year they occur; only carried back and then carried forward.  No, the IRS will not do them for you.  You will need to look at specific state instructions to see how they handle NOL's.  Most have their own special calculations and forms.

[rcbartel]

What 1045 Form and Instructions do I use then? 2011, 2012, or 2013 version, carrying back to 2011 first ?  Can I file the 1045 on or after I file my 2013 return?  What if I can't locate my 2011 return? Will a Transcript from IRS be enough to get the information? Do I need to pay for a copy of my 2011 return.  Can I choose to only carryback to 2012?

[GaryH]

No, as I stated earlier, you have to go back to 2011 first, then 2012.  You should file your 2013 return and let it process before filing the prior year NOL carrybacks so that the IRS has your 2013 return "on file" to check against. You can access a 2011 transcript from <a href="http://www.irs.gov" rel="nofollow" target="_blank">www.irs.gov</a>.  Try that first.

[rcbartel]

The main question I have is what 1045 form do I use, the 2013 version or the 2011 / 2012 versions?

[rcbartel]

And, will an IRS Transcript of 2011 return be sufficient to complete the 2011 carryback?

[GaryH]

Use the 2013 instructions and form.  You will get the download transcript for free.  See if it has everything you need.  If not, you will have to order a copy of your return from the IRS.

[gnenner]

In 2011 the firm suffered a loss, then in 2012 in made a profit.  1) Do I still have to fill out (which form?) for 2011 even though the NOL would have to be carried back to 2012 because 2011 was negative?

[gnenner]

The above is a schedule C item, (an LLC).

[datager]

With a carryback, the NOL must not be a net capital loss correct?  

A capital is only allowed to be carried forward and  claimed in any year is the lesser of $3,000, ($1,500 if you are married filing separately) or your total net loss as shown on line 15, column 3, of the Form 1040, Schedule D? Correct?