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How To Amend My 2011 Taxes

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How To Amend My 2011 Taxes

How to amend my 2011 taxes Publication 538 - Main Content Table of Contents Accounting PeriodsCalendar Year Fiscal Year Short Tax Year Improper Tax Year Change in Tax Year Individuals Partnerships, S Corporations, and Personal Service Corporations (PSCs) Corporations (Other Than S Corporations and PSCs) Accounting MethodsSpecial methods. How to amend my 2011 taxes Hybrid method. How to amend my 2011 taxes Cash Method Accrual Method Inventories Change in Accounting Method How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). How to amend my 2011 taxes Accounting Periods You must use a tax year to figure your taxable income. How to amend my 2011 taxes A tax year is an annual accounting period for keeping records and reporting income and expenses. How to amend my 2011 taxes An annual accounting period does not include a short tax year (discussed later). How to amend my 2011 taxes You can use the following tax years: A calendar year; or A fiscal year (including a 52-53-week tax year). How to amend my 2011 taxes Unless you have a required tax year, you adopt a tax year by filing your first income tax return using that tax year. How to amend my 2011 taxes A required tax year is a tax year required under the Internal Revenue Code or the Income Tax Regulations. How to amend my 2011 taxes You cannot adopt a tax year by merely: Filing an application for an extension of time to file an income tax return; Filing an application for an employer identification number (Form SS-4); or Paying estimated taxes. How to amend my 2011 taxes This section discusses: A calendar year. How to amend my 2011 taxes A fiscal year (including a period of 52 or 53 weeks). How to amend my 2011 taxes A short tax year. How to amend my 2011 taxes An improper tax year. How to amend my 2011 taxes A change in tax year. How to amend my 2011 taxes Special situations that apply to individuals. How to amend my 2011 taxes Restrictions that apply to the accounting period of a partnership, S corporation, or personal service corporation. How to amend my 2011 taxes Special situations that apply to corporations. How to amend my 2011 taxes Calendar Year A calendar year is 12 consecutive months beginning on January 1st and ending on December 31st. How to amend my 2011 taxes If you adopt the calendar year, you must maintain your books and records and report your income and expenses from January 1st through December 31st of each year. How to amend my 2011 taxes If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor, become a partner in a partnership, or become a shareholder in an S corporation, you must continue to use the calendar year unless you obtain approval from the IRS to change it, or are otherwise allowed to change it without IRS approval. How to amend my 2011 taxes See Change in Tax Year, later. How to amend my 2011 taxes Generally, anyone can adopt the calendar year. How to amend my 2011 taxes However, you must adopt the calendar year if: You keep no books or records; You have no annual accounting period; Your present tax year does not qualify as a fiscal year; or You are required to use a calendar year by a provision in the Internal Revenue Code or the Income Tax Regulations. How to amend my 2011 taxes Fiscal Year A fiscal year is 12 consecutive months ending on the last day of any month except December 31st. How to amend my 2011 taxes If you are allowed to adopt a fiscal year, you must consistently maintain your books and records and report your income and expenses using the time period adopted. How to amend my 2011 taxes 52-53-Week Tax Year You can elect to use a 52-53-week tax year if you keep your books and records and report your income and expenses on that basis. How to amend my 2011 taxes If you make this election, your 52-53-week tax year must always end on the same day of the week. How to amend my 2011 taxes Your 52-53-week tax year must always end on: Whatever date this same day of the week last occurs in a calendar month, or Whatever date this same day of the week falls that is nearest to the last day of the calendar month. How to amend my 2011 taxes For example, if you elect a tax year that always ends on the last Monday in March, your 2012 tax year will end on March 25, 2013. How to amend my 2011 taxes Election. How to amend my 2011 taxes   To make the election for the 52-53-week tax year, attach a statement with the following information to your tax return. How to amend my 2011 taxes The month in which the new 52-53-week tax year ends. How to amend my 2011 taxes The day of the week on which the tax year always ends. How to amend my 2011 taxes The date the tax year ends. How to amend my 2011 taxes It can be either of the following dates on which the chosen day: Last occurs in the month in (1), above, or Occurs nearest to the last day of the month in (1), above. How to amend my 2011 taxes   When you figure depreciation or amortization, a 52-53-week tax year is generally considered a year of 12 calendar months. How to amend my 2011 taxes   To determine an effective date (or apply provisions of any law) expressed in terms of tax years beginning, including, or ending on the first or last day of a specified calendar month, a 52-53-week tax year is considered to: Begin on the first day of the calendar month beginning nearest to the first day of the 52-53-week tax year, and End on the last day of the calendar month ending nearest to the last day of the 52-53-week tax year. How to amend my 2011 taxes Example. How to amend my 2011 taxes Assume a tax provision applies to tax years beginning on or after July 1, 2012, which happens to be a Sunday. How to amend my 2011 taxes For this purpose, a 52-53-week tax year that begins on the last Tuesday of June, which falls on June 26, 2012, is treated as beginning on July 1, 2012. How to amend my 2011 taxes Short Tax Year A short tax year is a tax year of less than 12 months. How to amend my 2011 taxes A short period tax return may be required when you (as a taxable entity): Are not in existence for an entire tax year, or Change your accounting period. How to amend my 2011 taxes Tax on a short period tax return is figured differently for each situation. How to amend my 2011 taxes Not in Existence Entire Year Even if a taxable entity was not in existence for the entire year, a tax return is required for the time it was in existence. How to amend my 2011 taxes Requirements for filing the return and figuring the tax are generally the same as the requirements for a return for a full tax year (12 months) ending on the last day of the short tax year. How to amend my 2011 taxes Example 1. How to amend my 2011 taxes XYZ Corporation was organized on July 1, 2012. How to amend my 2011 taxes It elected the calendar year as its tax year. How to amend my 2011 taxes Therefore, its first tax return was due March 15, 2013. How to amend my 2011 taxes This short period return will cover the period from July 1, 2012, through December 31, 2012. How to amend my 2011 taxes Example 2. How to amend my 2011 taxes A calendar year corporation dissolved on July 23, 2012. How to amend my 2011 taxes Its final return is due by October 15, 2012. How to amend my 2011 taxes It will cover the short period from January 1, 2012, through July 23, 2012. How to amend my 2011 taxes Death of individual. How to amend my 2011 taxes   When an individual dies, a tax return must be filed for the decedent by the 15th day of the 4th month after the close of the individual's regular tax year. How to amend my 2011 taxes The decedent's final return will be a short period tax return that begins on January 1st, and ends on the date of death. How to amend my 2011 taxes In the case of a decedent who dies on December 31st, the last day of the regular tax year, a full calendar-year tax return is required. How to amend my 2011 taxes Example. How to amend my 2011 taxes   Agnes Green was a single, calendar year taxpayer. How to amend my 2011 taxes She died on March 6, 2012. How to amend my 2011 taxes Her final income tax return must be filed by April 15, 2013. How to amend my 2011 taxes It will cover the short period from January 1, 2012, to March 6, 2012. How to amend my 2011 taxes Figuring Tax for Short Year If the IRS approves a change in your tax year or you are required to change your tax year, you must figure the tax and file your return for the short tax period. How to amend my 2011 taxes The short tax period begins on the first day after the close of your old tax year and ends on the day before the first day of your new tax year. How to amend my 2011 taxes Figure tax for a short year under the general rule, explained below. How to amend my 2011 taxes You may then be able to use a relief procedure, explained later, and claim a refund of part of the tax you paid. How to amend my 2011 taxes General rule. How to amend my 2011 taxes   Income tax for a short tax year must be annualized. How to amend my 2011 taxes However, self-employment tax is figured on the actual self-employment income for the short period. How to amend my 2011 taxes Individuals. How to amend my 2011 taxes   An individual must figure income tax for the short tax year as follows. How to amend my 2011 taxes Determine your adjusted gross income (AGI) for the short tax year and then subtract your actual itemized deductions for the short tax year. How to amend my 2011 taxes You must itemize deductions when you file a short period tax return. How to amend my 2011 taxes Multiply the dollar amount of your exemptions by the number of months in the short tax year and divide the result by 12. How to amend my 2011 taxes Subtract the amount in (2) from the amount in (1). How to amend my 2011 taxes The result is your modified taxable income. How to amend my 2011 taxes Multiply the modified taxable income in (3) by 12, then divide the result by the number of months in the short tax year. How to amend my 2011 taxes The result is your annualized income. How to amend my 2011 taxes Figure the total tax on your annualized income using the appropriate tax rate schedule. How to amend my 2011 taxes Multiply the total tax by the number of months in the short tax year and divide the result by 12. How to amend my 2011 taxes The result is your tax for the short tax year. How to amend my 2011 taxes Relief procedure. How to amend my 2011 taxes   Individuals and corporations can use a relief procedure to figure the tax for the short tax year. How to amend my 2011 taxes It may result in less tax. How to amend my 2011 taxes Under this procedure, the tax is figured by two separate methods. How to amend my 2011 taxes If the tax figured under both methods is less than the tax figured under the general rule, you can file a claim for a refund of part of the tax you paid. How to amend my 2011 taxes For more information, see section 443(b)(2) of the Internal Revenue Code. How to amend my 2011 taxes Alternative minimum tax. How to amend my 2011 taxes   To figure the alternative minimum tax (AMT) due for a short tax year: Figure the annualized alternative minimum taxable income (AMTI) for the short tax period by completing the following steps. How to amend my 2011 taxes Multiply the AMTI by 12. How to amend my 2011 taxes Divide the result by the number of months in the short tax year. How to amend my 2011 taxes Multiply the annualized AMTI by the appropriate rate of tax under section 55(b)(1) of the Internal Revenue Code. How to amend my 2011 taxes The result is the annualized AMT. How to amend my 2011 taxes Multiply the annualized AMT by the number of months in the short tax year and divide the result by 12. How to amend my 2011 taxes   For information on the AMT for individuals, see the Instructions for Form 6251, Alternative Minimum Tax–Individuals. How to amend my 2011 taxes For information on the AMT for corporations, see the Instructions to Form 4626, Alternative Minimum Tax–Corporations. How to amend my 2011 taxes Tax withheld from wages. How to amend my 2011 taxes   You can claim a credit against your income tax liability for federal income tax withheld from your wages. How to amend my 2011 taxes Federal income tax is withheld on a calendar year basis. How to amend my 2011 taxes The amount withheld in any calendar year is allowed as a credit for the tax year beginning in the calendar year. How to amend my 2011 taxes Improper Tax Year Taxpayers that have adopted an improper tax year must change to a proper tax year. How to amend my 2011 taxes For example, if a taxpayer began business on March 15 and adopted a tax year ending on March 14 (a period of exactly 12 months), this would be an improper tax year. How to amend my 2011 taxes See Accounting Periods, earlier, for a description of permissible tax years. How to amend my 2011 taxes To change to a proper tax year, you must do one of the following. How to amend my 2011 taxes If you are requesting a change to a calendar tax year, file an amended income tax return based on a calendar tax year that corrects the most recently filed tax return that was filed on the basis of an improper tax year. How to amend my 2011 taxes Attach a completed Form 1128 to the amended tax return. How to amend my 2011 taxes Write “FILED UNDER REV. How to amend my 2011 taxes PROC. How to amend my 2011 taxes 85-15” at the top of Form 1128 and file the forms with the Internal Revenue Service Center where you filed your original return. How to amend my 2011 taxes If you are requesting a change to a fiscal tax year, file Form 1128 in accordance with the form instructions to request IRS approval for the change. How to amend my 2011 taxes Change in Tax Year Generally, you must file Form 1128 to request IRS approval to change your tax year. How to amend my 2011 taxes See the Instructions for Form 1128 for exceptions. How to amend my 2011 taxes If you qualify for an automatic approval request, a user fee is not required. How to amend my 2011 taxes Individuals Generally, individuals must adopt the calendar year as their tax year. How to amend my 2011 taxes An individual can adopt a fiscal year provided that the individual maintains his or her books and records on the basis of the adopted fiscal year. How to amend my 2011 taxes Partnerships, S Corporations, and Personal Service Corporations (PSCs) Generally, partnerships, S corporations (including electing S corporations), and PSCs must use a required tax year. How to amend my 2011 taxes A required tax year is a tax year that is required under the Internal Revenue Code and Income Tax Regulations. How to amend my 2011 taxes The entity does not have to use the required tax year if it receives IRS approval to use another permitted tax year or makes an election under section 444 of the Internal Revenue Code (discussed later). How to amend my 2011 taxes The following discussions provide the rules for partnerships, S corporations, and PSCs. How to amend my 2011 taxes Partnership A partnership must conform its tax year to its partners' tax years unless any of the following apply. How to amend my 2011 taxes The partnership makes an election under section 444 of the Internal Revenue Code to have a tax year other than a required tax year by filing Form 8716. How to amend my 2011 taxes The partnership elects to use a 52-53-week tax year that ends with reference to either its required tax year or a tax year elected under section 444. How to amend my 2011 taxes The partnership can establish a business purpose for a different tax year. How to amend my 2011 taxes The rules for the required tax year for partnerships are as follows. How to amend my 2011 taxes If one or more partners having the same tax year own a majority interest (more than 50%) in partnership profits and capital, the partnership must use the tax year of those partners. How to amend my 2011 taxes If there is no majority interest tax year, the partnership must use the tax year of all its principal partners. How to amend my 2011 taxes A principal partner is one who has a 5% or more interest in the profits or capital of the partnership. How to amend my 2011 taxes If there is no majority interest tax year and the principal partners do not have the same tax year, the partnership generally must use a tax year that results in the least aggregate deferral of income to the partners. How to amend my 2011 taxes If a partnership changes to a required tax year because of these rules, it can get automatic approval by filing Form 1128. How to amend my 2011 taxes Least aggregate deferral of income. How to amend my 2011 taxes   The tax year that results in the least aggregate deferral of income is determined as follows. How to amend my 2011 taxes Figure the number of months of deferral for each partner using one partner's tax year. How to amend my 2011 taxes Find the months of deferral by counting the months from the end of that tax year forward to the end of each other partner's tax year. How to amend my 2011 taxes Multiply each partner's months of deferral figured in step (1) by that partner's share of interest in the partnership profits for the year used in step (1). How to amend my 2011 taxes Add the amounts in step (2) to get the aggregate (total) deferral for the tax year used in step (1). How to amend my 2011 taxes Repeat steps (1) through (3) for each partner's tax year that is different from the other partners' years. How to amend my 2011 taxes   The partner's tax year that results in the lowest aggregate (total) number is the tax year that must be used by the partnership. How to amend my 2011 taxes If the calculation results in more than one tax year qualifying as the tax year with the least aggregate deferral, the partnership can choose any one of those tax years as its tax year. How to amend my 2011 taxes However, if one of the tax years that qualifies is the partnership's existing tax year, the partnership must retain that tax year. How to amend my 2011 taxes Example. How to amend my 2011 taxes A and B each have a 50% interest in partnership P, which uses a fiscal year ending June 30. How to amend my 2011 taxes A uses the calendar year and B uses a fiscal year ending November 30. How to amend my 2011 taxes P must change its tax year to a fiscal year ending November 30 because this results in the least aggregate deferral of income to the partners, as shown in the following table. How to amend my 2011 taxes Year End 12/31: Year End Profits Interest Months of Deferral Interest × Deferral A 12/31 0. How to amend my 2011 taxes 5 -0- -0- B 11/30 0. How to amend my 2011 taxes 5 11 5. How to amend my 2011 taxes 5 Total Deferral 5. How to amend my 2011 taxes 5 Year End 11/30: Year End Profits Interest Months of Deferral Interest × Deferral A 12/31 0. How to amend my 2011 taxes 5 1 0. How to amend my 2011 taxes 5 B 11/30 0. How to amend my 2011 taxes 5 -0- -0- Total Deferral 0. How to amend my 2011 taxes 5 When determination is made. How to amend my 2011 taxes   The determination of the tax year under the least aggregate deferral rules must generally be made at the beginning of the partnership's current tax year. How to amend my 2011 taxes However, the IRS can require the partnership to use another day or period that will more accurately reflect the ownership of the partnership. How to amend my 2011 taxes This could occur, for example, if a partnership interest was transferred for the purpose of qualifying for a particular tax year. How to amend my 2011 taxes Short period return. How to amend my 2011 taxes   When a partnership changes its tax year, a short period return must be filed. How to amend my 2011 taxes The short period return covers the months between the end of the partnership's prior tax year and the beginning of its new tax year. How to amend my 2011 taxes   If a partnership changes to the tax year resulting in the least aggregate deferral, it must file a Form 1128 with the short period return showing the computations used to determine that tax year. How to amend my 2011 taxes The short period return must indicate at the top of page 1, “FILED UNDER SECTION 1. How to amend my 2011 taxes 706-1. How to amend my 2011 taxes ” More information. How to amend my 2011 taxes   For more information about changing a partnership's tax year, and information about ruling requests, see the Instructions for Form 1128. How to amend my 2011 taxes S Corporation All S corporations, regardless of when they became an S corporation, must use a permitted tax year. How to amend my 2011 taxes A permitted tax year is any of the following. How to amend my 2011 taxes The calendar year. How to amend my 2011 taxes A tax year elected under section 444 of the Internal Revenue Code. How to amend my 2011 taxes See Section 444 Election, below for details. How to amend my 2011 taxes A 52-53-week tax year ending with reference to the calendar year or a tax year elected under section 444. How to amend my 2011 taxes Any other tax year for which the corporation establishes a business purpose. How to amend my 2011 taxes If an electing S corporation wishes to adopt a tax year other than a calendar year, it must request IRS approval using Form 2553, instead of filing Form 1128. How to amend my 2011 taxes For information about changing an S corporation's tax year and information about ruling requests, see the Instructions for Form 1128. How to amend my 2011 taxes Personal Service Corporation (PSC) A PSC must use a calendar tax year unless any of the following apply. How to amend my 2011 taxes The corporation makes an election under section 444 of the Internal Revenue Code. How to amend my 2011 taxes See Section 444 Election, below for details. How to amend my 2011 taxes The corporation elects to use a 52-53-week tax year ending with reference to the calendar year or a tax year elected under section 444. How to amend my 2011 taxes The corporation establishes a business purpose for a fiscal year. How to amend my 2011 taxes See the Instructions for Form 1120 for general information about PSCs. How to amend my 2011 taxes For information on adopting or changing tax years for PSCs and information about ruling requests, see the Instructions for Form 1128. How to amend my 2011 taxes Section 444 Election A partnership, S corporation, electing S corporation, or PSC can elect under section 444 of the Internal Revenue Code to use a tax year other than its required tax year. How to amend my 2011 taxes Certain restrictions apply to the election. How to amend my 2011 taxes A partnership or an S corporation that makes a section 444 election must make certain required payments and a PSC must make certain distributions (discussed later). How to amend my 2011 taxes The section 444 election does not apply to any partnership, S corporation, or PSC that establishes a business purpose for a different period, explained later. How to amend my 2011 taxes A partnership, S corporation, or PSC can make a section 444 election if it meets all the following requirements. How to amend my 2011 taxes It is not a member of a tiered structure (defined in section 1. How to amend my 2011 taxes 444-2T of the regulations). How to amend my 2011 taxes It has not previously had a section 444 election in effect. How to amend my 2011 taxes It elects a year that meets the deferral period requirement. How to amend my 2011 taxes Deferral period. How to amend my 2011 taxes   The determination of the deferral period depends on whether the partnership, S corporation, or PSC is retaining its tax year or adopting or changing its tax year with a section 444 election. How to amend my 2011 taxes Retaining tax year. How to amend my 2011 taxes   Generally, a partnership, S corporation, or PSC can make a section 444 election to retain its tax year only if the deferral period of the new tax year is 3 months or less. How to amend my 2011 taxes This deferral period is the number of months between the beginning of the retained year and the close of the first required tax year. How to amend my 2011 taxes Adopting or changing tax year. How to amend my 2011 taxes   If the partnership, S corporation, or PSC is adopting or changing to a tax year other than its required year, the deferral period is the number of months from the end of the new tax year to the end of the required tax year. How to amend my 2011 taxes The IRS will allow a section 444 election only if the deferral period of the new tax year is less than the shorter of: Three months, or The deferral period of the tax year being changed. How to amend my 2011 taxes This is the tax year immediately preceding the year for which the partnership, S corporation, or PSC wishes to make the section 444 election. How to amend my 2011 taxes If the partnership, S corporation, or PSC's tax year is the same as its required tax year, the deferral period is zero. How to amend my 2011 taxes Example 1. How to amend my 2011 taxes BD Partnership uses a calendar year, which is also its required tax year. How to amend my 2011 taxes BD cannot make a section 444 election because the deferral period is zero. How to amend my 2011 taxes Example 2. How to amend my 2011 taxes E, a newly formed partnership, began operations on December 1. How to amend my 2011 taxes E is owned by calendar year partners. How to amend my 2011 taxes E wants to make a section 444 election to adopt a September 30 tax year. How to amend my 2011 taxes E's deferral period for the tax year beginning December 1 is 3 months, the number of months between September 30 and December 31. How to amend my 2011 taxes Making the election. How to amend my 2011 taxes   Make a section 444 election by filing Form 8716 with the Internal Revenue Service Center where the entity will file its tax return. How to amend my 2011 taxes Form 8716 must be filed by the earlier of: The due date (not including extensions) of the income tax return for the tax year resulting from the section 444 election, or The 15th day of the 6th month of the tax year for which the election will be effective. How to amend my 2011 taxes For this purpose, count the month in which the tax year begins, even if it begins after the first day of that month. How to amend my 2011 taxes Note. How to amend my 2011 taxes If the due date falls on a Saturday, Sunday, or legal holiday, file on the next business day. How to amend my 2011 taxes   Attach a copy of Form 8716 to Form 1065, Form 1120S, or Form 1120 for the first tax year for which the election is made. How to amend my 2011 taxes Example 1. How to amend my 2011 taxes AB, a partnership, begins operations on September 13, 2012, and is qualified to make a section 444 election to use a September 30 tax year for its tax year beginning September 13, 2012. How to amend my 2011 taxes AB must file Form 8716 by January 15, 2013, which is the due date of the partnership's tax return for the period from September 13, 2012, to September 30, 2012. How to amend my 2011 taxes Example 2. How to amend my 2011 taxes The facts are the same as in Example 1 except that AB begins operations on October 21, 2012. How to amend my 2011 taxes AB must file Form 8716 by March 17, 2013. How to amend my 2011 taxes Example 3. How to amend my 2011 taxes B is a corporation that first becomes a PSC for its tax year beginning September 1, 2012. How to amend my 2011 taxes B qualifies to make a section 444 election to use a September 30 tax year for its tax year beginning September 1, 2012. How to amend my 2011 taxes B must file Form 8716 by December 17, 2012, the due date of the income tax return for the short period from September 1, 2012, to September 30, 2012. How to amend my 2011 taxes Note. How to amend my 2011 taxes The due dates in Examples 2 and 3 are adjusted because the dates fall on a Saturday, Sunday or legal holiday. How to amend my 2011 taxes Extension of time for filing. How to amend my 2011 taxes   There is an automatic extension of 12 months to make this election. How to amend my 2011 taxes See the Form 8716 instructions for more information. How to amend my 2011 taxes Terminating the election. How to amend my 2011 taxes   The section 444 election remains in effect until it is terminated. How to amend my 2011 taxes If the election is terminated, another section 444 election cannot be made for any tax year. How to amend my 2011 taxes   The election ends when any of the following applies to the partnership, S corporation, or PSC. How to amend my 2011 taxes The entity changes to its required tax year. How to amend my 2011 taxes The entity liquidates. How to amend my 2011 taxes The entity becomes a member of a tiered structure. How to amend my 2011 taxes The IRS determines that the entity willfully failed to comply with the required payments or distributions. How to amend my 2011 taxes   The election will also end if either of the following events occur. How to amend my 2011 taxes An S corporation's S election is terminated. How to amend my 2011 taxes However, if the S corporation immediately becomes a PSC, the PSC can continue the section 444 election of the S corporation. How to amend my 2011 taxes A PSC ceases to be a PSC. How to amend my 2011 taxes If the PSC elects to be an S corporation, the S corporation can continue the election of the PSC. How to amend my 2011 taxes Required payment for partnership or S corporation. How to amend my 2011 taxes   A partnership or an S corporation must make a required payment for any tax year: The section 444 election is in effect. How to amend my 2011 taxes The required payment for that year (or any preceding tax year) is more than $500. How to amend my 2011 taxes    This payment represents the value of the tax deferral the owners receive by using a tax year different from the required tax year. How to amend my 2011 taxes   Form 8752, Required Payment or Refund Under Section 7519, must be filed each year the section 444 election is in effect, even if no payment is due. How to amend my 2011 taxes If the required payment is more than $500 (or the required payment for any prior year was more than $500), the payment must be made when Form 8752 is filed. How to amend my 2011 taxes If the required payment is $500 or less and no payment was required in a prior year, Form 8752 must be filed showing a zero amount. How to amend my 2011 taxes Applicable election year. How to amend my 2011 taxes   Any tax year a section 444 election is in effect, including the first year, is called an applicable election year. How to amend my 2011 taxes Form 8752 must be filed and the required payment made (or zero amount reported) by May 15th of the calendar year following the calendar year in which the applicable election year begins. How to amend my 2011 taxes Required distribution for PSC. How to amend my 2011 taxes   A PSC with a section 444 election in effect must distribute certain amounts to employee-owners by December 31 of each applicable year. How to amend my 2011 taxes If it fails to make these distributions, it may be required to defer certain deductions for amounts paid to owner-employees. How to amend my 2011 taxes The amount deferred is treated as paid or incurred in the following tax year. How to amend my 2011 taxes   For information on the minimum distribution, see the instructions for Part I of Schedule H (Form 1120), Section 280H Limitations for a Personal Service Corporation (PSC). How to amend my 2011 taxes Back-up election. How to amend my 2011 taxes   A partnership, S corporation, or PSC can file a back-up section 444 election if it requests (or plans to request) permission to use a business purpose tax year, discussed later. How to amend my 2011 taxes If the request is denied, the back-up section 444 election must be activated (if the partnership, S corporation, or PSC otherwise qualifies). How to amend my 2011 taxes Making back-up election. How to amend my 2011 taxes   The general rules for making a section 444 election, as discussed earlier, apply. How to amend my 2011 taxes When filing Form 8716, type or print “BACK-UP ELECTION” at the top of the form. How to amend my 2011 taxes However, if Form 8716 is filed on or after the date Form 1128 (or Form 2553) is filed, type or print “FORM 1128 (or FORM 2553) BACK-UP ELECTION” at the top of Form 8716. How to amend my 2011 taxes Activating election. How to amend my 2011 taxes   A partnership or S corporation activates its back-up election by filing the return required and making the required payment with Form 8752. How to amend my 2011 taxes The due date for filing Form 8752 and making the payment is the later of the following dates. How to amend my 2011 taxes May 15 of the calendar year following the calendar year in which the applicable election year begins. How to amend my 2011 taxes 60 days after the partnership or S corporation has been notified by the IRS that the business year request has been denied. How to amend my 2011 taxes   A PSC activates its back-up election by filing Form 8716 with its original or amended income tax return for the tax year in which the election is first effective and printing on the top of the income tax return, “ACTIVATING BACK-UP ELECTION. How to amend my 2011 taxes ” 52-53-Week Tax Year A partnership, S corporation, or PSC can use a tax year other than its required tax year if it elects a 52-53-week tax year (discussed earlier) that ends with reference to either its required tax year or a tax year elected under section 444 (discussed earlier). How to amend my 2011 taxes A newly formed partnership, S corporation, or PSC can adopt a 52-53-week tax year ending with reference to either its required tax year or a tax year elected under section 444 without IRS approval. How to amend my 2011 taxes However, if the entity wishes to change to a 52-53-week tax year or change from a 52-53-week tax year that references a particular month to a non-52-53-week tax year that ends on the last day of that month, it must request IRS approval by filing Form 1128. How to amend my 2011 taxes Business Purpose Tax Year A partnership, S corporation, or PSC establishes the business purpose for a tax year by filing Form 1128. How to amend my 2011 taxes See the Instructions for Form 1128 for details. How to amend my 2011 taxes Corporations (Other Than S Corporations and PSCs) A new corporation establishes its tax year when it files its first tax return. How to amend my 2011 taxes A newly reactivated corporation that has been inactive for a number of years is treated as a new taxpayer for the purpose of adopting a tax year. How to amend my 2011 taxes An S corporation or a PSC must use the required tax year rules, discussed earlier, to establish a tax year. How to amend my 2011 taxes Generally, a corporation that wants to change its tax year must obtain approval from the IRS under either the: (a) automatic approval procedures; or (b) ruling request procedures. How to amend my 2011 taxes See the Instructions for Form 1128 for details. How to amend my 2011 taxes Accounting Methods An accounting method is a set of rules used to determine when income and expenses are reported on your tax return. How to amend my 2011 taxes Your accounting method includes not only your overall method of accounting, but also the accounting treatment you use for any material item. How to amend my 2011 taxes You choose an accounting method when you file your first tax return. How to amend my 2011 taxes If you later want to change your accounting method, you must get IRS approval. How to amend my 2011 taxes See Change in Accounting Method, later. How to amend my 2011 taxes No single accounting method is required of all taxpayers. How to amend my 2011 taxes You must use a system that clearly reflects your income and expenses and you must maintain records that will enable you to file a correct return. How to amend my 2011 taxes In addition to your permanent accounting books, you must keep any other records necessary to support the entries on your books and tax returns. How to amend my 2011 taxes You must use the same accounting method from year to year. How to amend my 2011 taxes An accounting method clearly reflects income only if all items of gross income and expenses are treated the same from year to year. How to amend my 2011 taxes If you do not regularly use an accounting method that clearly reflects your income, your income will be refigured under the method that, in the opinion of the IRS, does clearly reflect income. How to amend my 2011 taxes Methods you can use. How to amend my 2011 taxes   In general, you can compute your taxable income under any of the following accounting methods. How to amend my 2011 taxes Cash method. How to amend my 2011 taxes Accrual method. How to amend my 2011 taxes Special methods of accounting for certain items of income and expenses. How to amend my 2011 taxes A hybrid method which combines elements of two or more of the above accounting methods. How to amend my 2011 taxes The cash and accrual methods of accounting are explained later. How to amend my 2011 taxes Special methods. How to amend my 2011 taxes   This publication does not discuss special methods of accounting for certain items of income or expenses. How to amend my 2011 taxes For information on reporting income using one of the long-term contract methods, see section 460 of the Internal Revenue Code and the related regulations. How to amend my 2011 taxes The following publications also discuss special methods of reporting income or expenses. How to amend my 2011 taxes Publication 225, Farmer's Tax Guide. How to amend my 2011 taxes Publication 535, Business Expenses. How to amend my 2011 taxes Publication 537, Installment Sales. How to amend my 2011 taxes Publication 946, How To Depreciate Property. How to amend my 2011 taxes Hybrid method. How to amend my 2011 taxes   Generally, you can use any combination of cash, accrual, and special methods of accounting if the combination clearly reflects your income and you use it consistently. How to amend my 2011 taxes However, the following restrictions apply. How to amend my 2011 taxes If an inventory is necessary to account for your income, you must use an accrual method for purchases and sales. How to amend my 2011 taxes See Exceptions under Inventories, later. How to amend my 2011 taxes Generally, you can use the cash method for all other items of income and expenses. How to amend my 2011 taxes See Inventories, later. How to amend my 2011 taxes If you use the cash method for reporting your income, you must use the cash method for reporting your expenses. How to amend my 2011 taxes If you use an accrual method for reporting your expenses, you must use an accrual method for figuring your income. How to amend my 2011 taxes Any combination that includes the cash method is treated as the cash method for purposes of section 448 of the Internal Revenue Code. How to amend my 2011 taxes Business and personal items. How to amend my 2011 taxes   You can account for business and personal items using different accounting methods. How to amend my 2011 taxes For example, you can determine your business income and expenses under an accrual method, even if you use the cash method to figure personal items. How to amend my 2011 taxes Two or more businesses. How to amend my 2011 taxes   If you operate two or more separate and distinct businesses, you can use a different accounting method for each business. How to amend my 2011 taxes No business is separate and distinct, unless a complete and separate set of books and records is maintained for each business. How to amend my 2011 taxes Note. How to amend my 2011 taxes If you use different accounting methods to create or shift profits or losses between businesses (for example, through inventory adjustments, sales, purchases, or expenses) so that income is not clearly reflected, the businesses will not be considered separate and distinct. How to amend my 2011 taxes Cash Method Most individuals and many small businesses use the cash method of accounting. How to amend my 2011 taxes Generally, if you produce, purchase, or sell merchandise, you must keep an inventory and use an accrual method for sales and purchases of merchandise. How to amend my 2011 taxes See Inventories, later, for exceptions to this rule. How to amend my 2011 taxes Income Under the cash method, you include in your gross income all items of income you actually or constructively receive during the tax year. How to amend my 2011 taxes If you receive property and services, you must include their fair market value (FMV) in income. How to amend my 2011 taxes Constructive receipt. How to amend my 2011 taxes   Income is constructively received when an amount is credited to your account or made available to you without restriction. How to amend my 2011 taxes You need not have possession of it. How to amend my 2011 taxes If you authorize someone to be your agent and receive income for you, you are considered to have received it when your agent receives it. How to amend my 2011 taxes Income is not constructively received if your control of its receipt is subject to substantial restrictions or limitations. How to amend my 2011 taxes Example. How to amend my 2011 taxes You are a calendar year taxpayer. How to amend my 2011 taxes Your bank credited, and made available, interest to your bank account in December 2012. How to amend my 2011 taxes You did not withdraw it or enter it into your books until 2013. How to amend my 2011 taxes You must include the amount in gross income for 2012, the year you constructively received it. How to amend my 2011 taxes You cannot hold checks or postpone taking possession of similar property from one tax year to another to postpone paying tax on the income. How to amend my 2011 taxes You must report the income in the year the property is received or made available to you without restriction. How to amend my 2011 taxes Expenses Under the cash method, generally, you deduct expenses in the tax year in which you actually pay them. How to amend my 2011 taxes This includes business expenses for which you contest liability. How to amend my 2011 taxes However, you may not be able to deduct an expense paid in advance. How to amend my 2011 taxes Instead, you may be required to capitalize certain costs, as explained later under Uniform Capitalization Rules. How to amend my 2011 taxes Expense paid in advance. How to amend my 2011 taxes   An expense you pay in advance is deductible only in the year to which it applies, unless the expense qualifies for the 12-month rule. How to amend my 2011 taxes   Under the 12-month rule, a taxpayer is not required to capitalize amounts paid to create certain rights or benefits for the taxpayer that do not extend beyond the earlier of the following. How to amend my 2011 taxes 12 months after the right or benefit begins, or The end of the tax year after the tax year in which payment is made. How to amend my 2011 taxes   If you have not been applying the general rule (an expense paid in advance is deductible only in the year to which it applies) and/or the 12-month rule to the expenses you paid in advance, you must obtain approval from the IRS before using the general rule and/or the 12-month rule. How to amend my 2011 taxes See Change in Accounting Method, later. How to amend my 2011 taxes Example 1. How to amend my 2011 taxes You are a calendar year taxpayer and pay $3,000 in 2012 for a business insurance policy that is effective for three years (36 months), beginning on July 1, 2012. How to amend my 2011 taxes The general rule that an expense paid in advance is deductible only in the year to which it applies is applicable to this payment because the payment does not qualify for the 12-month rule. How to amend my 2011 taxes Therefore, only $500 (6/36 x $3,000) is deductible in 2012, $1,000 (12/36 x $3,000) is deductible in 2013, $1,000 (12/36 x $3,000) is deductible in 2014, and the remaining $500 is deductible in 2015. How to amend my 2011 taxes Example 2. How to amend my 2011 taxes You are a calendar year taxpayer and pay $10,000 on July 1, 2012, for a business insurance policy that is effective for only one year beginning on July 1, 2012. How to amend my 2011 taxes The 12-month rule applies. How to amend my 2011 taxes Therefore, the full $10,000 is deductible in 2012. How to amend my 2011 taxes Excluded Entities The following entities cannot use the cash method, including any combination of methods that includes the cash method. How to amend my 2011 taxes (See Special rules for farming businesses, later. How to amend my 2011 taxes ) A corporation (other than an S corporation) with average annual gross receipts exceeding $5 million. How to amend my 2011 taxes See Gross receipts test, below. How to amend my 2011 taxes A partnership with a corporation (other than an S corporation) as a partner, and with the partnership having average annual gross receipts exceeding $5 million. How to amend my 2011 taxes See Gross receipts test, below. How to amend my 2011 taxes A tax shelter. How to amend my 2011 taxes Exceptions The following entities are not prohibited from using the cash method of accounting. How to amend my 2011 taxes Any corporation or partnership, other than a tax shelter, that meets the gross receipts test for all tax years after 1985. How to amend my 2011 taxes A qualified personal service corporation (PSC). How to amend my 2011 taxes Gross receipts test. How to amend my 2011 taxes   A corporation or partnership, other than a tax shelter, that meets the gross receipts test can generally use the cash method. How to amend my 2011 taxes A corporation or a partnership meets the test if, for each prior tax year beginning after 1985, its average annual gross receipts are $5 million or less. How to amend my 2011 taxes    An entity's average annual gross receipts for a prior tax year is determined by: Adding the gross receipts for that tax year and the 2 preceding tax years; and Dividing the total by 3. How to amend my 2011 taxes See Gross receipts test for qualifying taxpayers, for more information. How to amend my 2011 taxes Generally, a partnership applies the test at the partnership level. How to amend my 2011 taxes Gross receipts for a short tax year are annualized. How to amend my 2011 taxes Aggregation rules. How to amend my 2011 taxes   Organizations that are members of an affiliated service group or a controlled group of corporations treated as a single employer for tax purposes are required to aggregate their gross receipts to determine whether the gross receipts test is met. How to amend my 2011 taxes Change to accrual method. How to amend my 2011 taxes   A corporation or partnership that fails to meet the gross receipts test for any tax year is prohibited from using the cash method and must change to an accrual method of accounting, effective for the tax year in which the entity fails to meet this test. How to amend my 2011 taxes Special rules for farming businesses. How to amend my 2011 taxes   Generally, a taxpayer engaged in the trade or business of farming is allowed to use the cash method for its farming business. How to amend my 2011 taxes However, certain corporations (other than S corporations) and partnerships that have a partner that is a corporation must use an accrual method for their farming business. How to amend my 2011 taxes For this purpose, farming does not include the operation of a nursery or sod farm or the raising or harvesting of trees (other than fruit and nut trees). How to amend my 2011 taxes   There is an exception to the requirement to use an accrual method for corporations with gross receipts of $1 million or less for each prior tax year after 1975. How to amend my 2011 taxes For family corporations engaged in farming, the exception applies if gross receipts were $25 million or less for each prior tax year after 1985. How to amend my 2011 taxes See chapter 2 of Publication 225, Farmer's Tax Guide, for more information. How to amend my 2011 taxes Qualified PSC. How to amend my 2011 taxes   A PSC that meets the following function and ownership tests can use the cash method. How to amend my 2011 taxes Function test. How to amend my 2011 taxes   A corporation meets the function test if at least 95% of its activities are in the performance of services in the fields of health, veterinary services, law, engineering (including surveying and mapping), architecture, accounting, actuarial science, performing arts, or consulting. How to amend my 2011 taxes Ownership test. How to amend my 2011 taxes   A corporation meets the ownership test if at least 95% of its stock is owned, directly or indirectly, at all times during the year by one or more of the following. How to amend my 2011 taxes Employees performing services for the corporation in a field qualifying under the function test. How to amend my 2011 taxes Retired employees who had performed services in those fields. How to amend my 2011 taxes The estate of an employee described in (1) or (2). How to amend my 2011 taxes Any other person who acquired the stock by reason of the death of an employee referred to in (1) or (2), but only for the 2-year period beginning on the date of death. How to amend my 2011 taxes   Indirect ownership is generally taken into account if the stock is owned indirectly through one or more partnerships, S corporations, or qualified PSCs. How to amend my 2011 taxes Stock owned by one of these entities is considered owned by the entity's owners in proportion to their ownership interest in that entity. How to amend my 2011 taxes Other forms of indirect stock ownership, such as stock owned by family members, are generally not considered when determining if the ownership test is met. How to amend my 2011 taxes   For purposes of the ownership test, a person is not considered an employee of a corporation unless that person performs more than minimal services for the corporation. How to amend my 2011 taxes Change to accrual method. How to amend my 2011 taxes   A corporation that fails to meet the function test for any tax year; or fails to meet the ownership test at any time during any tax year must change to an accrual method of accounting, effective for the year in which the corporation fails to meet either test. How to amend my 2011 taxes A corporation that fails to meet the function test or the ownership test is not treated as a qualified PSC for any part of that tax year. How to amend my 2011 taxes Accrual Method Under the accrual method of accounting, generally you report income in the year it is earned and deduct or capitalize expenses in the year incurred. How to amend my 2011 taxes The purpose of an accrual method of accounting is to match income and expenses in the correct year. How to amend my 2011 taxes Income Generally, you include an amount in gross income for the tax year in which all events that fix your right to receive the income have occurred and you can determine the amount with reasonable accuracy. How to amend my 2011 taxes Under this rule, you report an amount in your gross income on the earliest of the following dates. How to amend my 2011 taxes When you receive payment. How to amend my 2011 taxes When the income amount is due to you. How to amend my 2011 taxes When you earn the income. How to amend my 2011 taxes When title has passed. How to amend my 2011 taxes Estimated income. How to amend my 2011 taxes   If you include a reasonably estimated amount in gross income and later determine the exact amount is different, take the difference into account in the tax year you make that determination. How to amend my 2011 taxes Change in payment schedule. How to amend my 2011 taxes   If you perform services for a basic rate specified in a contract, you must accrue the income at the basic rate, even if you agree to receive payments at a reduced rate. How to amend my 2011 taxes Continue this procedure until you complete the services, then account for the difference. How to amend my 2011 taxes Advance Payment for Services Generally, you report an advance payment for services to be performed in a later tax year as income in the year you receive the payment. How to amend my 2011 taxes However, if you receive an advance payment for services you agree to perform by the end of the next tax year, you can elect to postpone including the advance payment in income until the next tax year. How to amend my 2011 taxes However, you cannot postpone including any payment beyond that tax year. How to amend my 2011 taxes Service agreement. How to amend my 2011 taxes   You can postpone reporting income from an advance payment you receive for a service agreement on property you sell, lease, build, install, or construct. How to amend my 2011 taxes This includes an agreement providing for incidental replacement of parts or materials. How to amend my 2011 taxes However, this applies only if you offer the property without a service agreement in the normal course of business. How to amend my 2011 taxes Postponement not allowed. How to amend my 2011 taxes   Generally, one cannot postpone including an advance payment in income for services if either of the following applies. How to amend my 2011 taxes You are to perform any part of the service after the end of the tax year immediately following the year you receive the advance payment. How to amend my 2011 taxes You are to perform any part of the service at any unspecified future date that may be after the end of the tax year immediately following the year you receive the advance payment. How to amend my 2011 taxes Examples. How to amend my 2011 taxes   In each of the following examples, assume the tax year is a calendar year and that the accrual method of accounting is used. How to amend my 2011 taxes Example 1. How to amend my 2011 taxes You manufacture, sell, and service computers. How to amend my 2011 taxes You received payment in 2012 for a one-year contingent service contract on a computer you sold. How to amend my 2011 taxes You can postpone including in income the part of the payment you did not earn in 2012 if, in the normal course of your business, you offer computers for sale without a contingent service contract. How to amend my 2011 taxes Example 2. How to amend my 2011 taxes You are in the television repair business. How to amend my 2011 taxes You received payments in 2012 for one-year contracts under which you agree to repair or replace certain parts that fail to function properly in television sets manufactured and sold by unrelated parties. How to amend my 2011 taxes You include the payments in gross income as you earn them. How to amend my 2011 taxes Example 3. How to amend my 2011 taxes You own a dance studio. How to amend my 2011 taxes On October 1, 2012, you receive payment for a one-year contract for 48 one-hour lessons beginning on that date. How to amend my 2011 taxes You give eight lessons in 2012. How to amend my 2011 taxes Under this method of including advance payments, you must include one-sixth (8/48) of the payment in income for 2012, and five-sixths (40/48) of the payment in 2013, even if you do not give all the lessons by the end of 2013. How to amend my 2011 taxes Example 4. How to amend my 2011 taxes Assume the same facts as in Example 3, except the payment is for a two-year contract for 96 lessons. How to amend my 2011 taxes You must include the entire payment in income in 2012 since part of the services may be performed after the following year. How to amend my 2011 taxes Guarantee or warranty. How to amend my 2011 taxes   Generally, you cannot postpone reporting income you receive under a guarantee or warranty contract. How to amend my 2011 taxes Prepaid rent. How to amend my 2011 taxes   You cannot postpone reporting income from prepaid rent. How to amend my 2011 taxes Prepaid rent does not include payment for the use of a room or other space when significant service is also provided for the occupant. How to amend my 2011 taxes You provide significant service when you supply space in a hotel, boarding house, tourist home, motor court, motel, or apartment house that furnishes hotel services. How to amend my 2011 taxes Books and records. How to amend my 2011 taxes   Any advance payment you include in gross receipts on your tax return for the year you receive payment must not be less than the payment you include in income for financial reports under the method of accounting used for those reports. How to amend my 2011 taxes Financial reports include reports to shareholders, partners, beneficiaries, and other proprietors for credit purposes and consolidated financial statements. How to amend my 2011 taxes IRS approval. How to amend my 2011 taxes   You must file Form 3115 to obtain IRS approval to change your method of accounting for advance payment for services. How to amend my 2011 taxes Advance Payment for Sales Special rules apply to including income from advance payments on agreements for future sales or other dispositions of goods held primarily for sale to customers in the ordinary course of your trade or business. How to amend my 2011 taxes However, the rules do not apply to a payment (or part of a payment) for services that are not an integral part of the main activities covered under the agreement. How to amend my 2011 taxes An agreement includes a gift certificate that can be redeemed for goods. How to amend my 2011 taxes Amounts due and payable are considered received. How to amend my 2011 taxes How to report payments. How to amend my 2011 taxes   Generally, include an advance payment in income in the year in which you receive it. How to amend my 2011 taxes However, you can use the alternative method, discussed next. How to amend my 2011 taxes Alternative method of reporting. How to amend my 2011 taxes   Under the alternative method, generally include an advance payment in income in the earlier tax year in which you: Include advance payments in gross receipts under the method of accounting you use for tax purposes, or Include any part of advance payments in income for financial reports under the method of accounting used for those reports. How to amend my 2011 taxes Financial reports include reports to shareholders, partners, beneficiaries, and other proprietors for credit purposes and consolidated financial statements. How to amend my 2011 taxes Example 1. How to amend my 2011 taxes You are a retailer. How to amend my 2011 taxes You use an accrual method of accounting and account for the sale of goods when you ship the goods. How to amend my 2011 taxes You use this method for both tax and financial reporting purposes. How to amend my 2011 taxes You can include advance payments in gross receipts for tax purposes in either: (a) the tax year in which you receive the payments; or (b) the tax year in which you ship the goods. How to amend my 2011 taxes However, see Exception for inventory goods, later. How to amend my 2011 taxes Example 2. How to amend my 2011 taxes You are a calendar year taxpayer. How to amend my 2011 taxes You manufacture household furniture and use an accrual method of accounting. How to amend my 2011 taxes Under this method, you accrue income for your financial reports when you ship the furniture. How to amend my 2011 taxes For tax purposes, you do not accrue income until the furniture has been delivered and accepted. How to amend my 2011 taxes In 2012, you received an advance payment of $8,000 for an order of furniture to be manufactured for a total price of $20,000. How to amend my 2011 taxes You shipped the furniture to the customer in December 2012, but it was not delivered and accepted until January 2013. How to amend my 2011 taxes For tax purposes, you include the $8,000 advance payment in gross income for 2012; and include the remaining $12,000 of the contract price in gross income for 2013. How to amend my 2011 taxes Information schedule. How to amend my 2011 taxes   If you use the alternative method of reporting advance payments, you must attach a statement with the following information to your tax return each year. How to amend my 2011 taxes Total advance payments received in the current tax year. How to amend my 2011 taxes Total advance payments received in earlier tax years and not included in income before the current tax year. How to amend my 2011 taxes Total payments received in earlier tax years included in income for the current tax year. How to amend my 2011 taxes Exception for inventory goods. How to amend my 2011 taxes   If you have an agreement to sell goods properly included in inventory, you can postpone including the advance payment in income until the end of the second tax year following the year you receive an advance payment if, on the last day of the tax year, you meet the following requirements. How to amend my 2011 taxes You account for the advance payment under the alternative method (discussed earlier). How to amend my 2011 taxes You have received a substantial advance payment on the agreement (discussed next). How to amend my 2011 taxes You have enough substantially similar goods on hand, or available through your normal source of supply, to satisfy the agreement. How to amend my 2011 taxes These rules also apply to an agreement, such as a gift certificate, that can be satisfied with goods that cannot be identified in the tax year you receive an advance payment. How to amend my 2011 taxes   If you meet these conditions, all advance payments you receive by the end of the second tax year, including payments received in prior years but not reported, must be included in income by the second tax year following the tax year of receipt of substantial advance payments. How to amend my 2011 taxes You must also deduct in that second year all actual or estimated costs for the goods required to satisfy the agreement. How to amend my 2011 taxes If you estimated the cost, you must take into account any difference between the estimate and the actual cost when the goods are delivered. How to amend my 2011 taxes Note. How to amend my 2011 taxes You must report any advance payments you receive after the second year in the year received. How to amend my 2011 taxes No further deferral is allowed. How to amend my 2011 taxes Substantial advance payments. How to amend my 2011 taxes   Under an agreement for a future sale, you have substantial advance payments if, by the end of the tax year, the total advance payments received during that year and preceding tax years are equal to or more than the total costs reasonably estimated to be includible in inventory because of the agreement. How to amend my 2011 taxes Example. How to amend my 2011 taxes You are a calendar year, accrual method taxpayer who accounts for advance payments under the alternative method. How to amend my 2011 taxes In 2008, you entered into a contract for the sale of goods properly includible in your inventory. How to amend my 2011 taxes The total contract price is $50,000 and you estimate that your total inventoriable costs for the goods will be $25,000. How to amend my 2011 taxes You receive the following advance payments under the contract. How to amend my 2011 taxes 2009 $17,500 2010 10,000 2011 7,500 2012 5,000 2013 5,000 2014 5,000 Total contract price $50,000   Your customer asked you to deliver the goods in 2015. How to amend my 2011 taxes In your 2010 closing inventory, you had on hand enough of the type of goods specified in the contract to satisfy the contract. How to amend my 2011 taxes Since the advance payments you had received by the end of 2010 were more than the costs you estimated, the payments are substantial advance payments. How to amend my 2011 taxes   For 2012, include in income all payments you received by the end of 2012, the second tax year following the tax year in which you received substantial advance payments. How to amend my 2011 taxes You must include $40,000 in sales for 2012 (the total amounts received from 2009 through 2012) and include in inventory the cost of the goods (or similar goods) on hand. How to amend my 2011 taxes If no such goods are on hand, then estimate the cost necessary to satisfy the contract. How to amend my 2011 taxes   No further deferral is allowed. How to amend my 2011 taxes You must include in gross income the advance payment you receive each remaining year of the contract. How to amend my 2011 taxes Take into account the difference between any estimated cost of goods sold and the actual cost when you deliver the goods in 2015. How to amend my 2011 taxes IRS approval. How to amend my 2011 taxes   You must file Form 3115 to obtain IRS approval to change your method of accounting for advance payments for sales. How to amend my 2011 taxes Expenses Under an accrual method of accounting, you generally deduct or capitalize a business expense when both the following apply. How to amend my 2011 taxes The all-events test has been met. How to amend my 2011 taxes The test is met when: All events have occurred that fix the fact of liability, and The liability can be determined with reasonable accuracy. How to amend my 2011 taxes Economic performance has occurred. How to amend my 2011 taxes Economic Performance Generally, you cannot deduct or capitalize a business expense until economic performance occurs. How to amend my 2011 taxes If your expense is for property or services provided to you, or for your use of property, economic performance occurs as the property or services are provided or the property is used. How to amend my 2011 taxes If your expense is for property or services you provide to others, economic performance occurs as you provide the property or services. How to amend my 2011 taxes Example. How to amend my 2011 taxes You are a calendar year taxpayer. How to amend my 2011 taxes You buy office supplies in December 2012. How to amend my 2011 taxes You receive the supplies and the bill in December, but you pay the bill in January 2013. How to amend my 2011 taxes You can deduct the expense in 2012 because all events have occurred to fix the liability, the amount of the liability can be determined, and economic performance occurred in 2012. How to amend my 2011 taxes Your office supplies may qualify as a recurring item, discussed later. How to amend my 2011 taxes If so, you can deduct them in 2012, even if the supplies are not delivered until 2013 (when economic performance occurs). How to amend my 2011 taxes Workers' compensation and tort liability. How to amend my 2011 taxes   If you are required to make payments under workers' compensation laws or in satisfaction of any tort liability, economic performance occurs as you make the payments. How to amend my 2011 taxes If you are required to make payments to a special designated settlement fund established by court order for a tort liability, economic performance occurs as you make the payments. How to amend my 2011 taxes Taxes. How to amend my 2011 taxes   Economic performance generally occurs as estimated income tax, property taxes, employment taxes, etc. How to amend my 2011 taxes are paid. How to amend my 2011 taxes However, you can elect to treat taxes as a recurring item, discussed later. How to amend my 2011 taxes You can also elect to ratably accrue real estate taxes. How to amend my 2011 taxes See chapter 5 of Publication 535 for information about real estate taxes. How to amend my 2011 taxes Other liabilities. How to amend my 2011 taxes   Other liabilities for which economic performance occurs as you make payments include liabilities for breach of contract (to the extent of incidental, consequential, and liquidated damages), violation of law, rebates and refunds, awards, prizes, jackpots, insurance, and warranty and service contracts. How to amend my 2011 taxes Interest. How to amend my 2011 taxes   Economic performance occurs with the passage of time (as the borrower uses, and the lender forgoes use of, the lender's money) rather than as payments are made. How to amend my 2011 taxes Compensation for services. How to amend my 2011 taxes   Generally, economic performance occurs as an employee renders service to the employer. How to amend my 2011 taxes However, deductions for compensation or other benefits paid to an employee in a year subsequent to economic performance are subject to the rules governing deferred compensation, deferred benefits, and funded welfare benefit plans. How to amend my 2011 taxes For information on employee benefit programs, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. How to amend my 2011 taxes Vacation pay. How to amend my 2011 taxes   You can take a current deduction for vacation pay earned by your employees if you pay it during the year or, if the amount is vested, within 2½ months after the end of the year. How to amend my 2011 taxes If you pay it later than this, you must deduct it in the year actually paid. How to amend my 2011 taxes An amount is vested if your right to it cannot be nullified or cancelled. How to amend my 2011 taxes Exception for recurring items. How to amend my 2011 taxes   An exception to the economic performance rule allows certain recurring items to be treated as incurred during the tax year even though economic performance has not occurred. How to amend my 2011 taxes The exception applies if all the following requirements are met. How to amend my 2011 taxes The all-events test, discussed earlier, is met. How to amend my 2011 taxes Economic performance occurs by the earlier of the following dates. How to amend my 2011 taxes 8½ months after the close of the year. How to amend my 2011 taxes The date you file a timely return (including extensions) for the year. How to amend my 2011 taxes The item is recurring in nature and you consistently treat similar items as incurred in the tax year in which the all-events test is met. How to amend my 2011 taxes Either: The item is not material, or Accruing the item in the year in which the all-events test is met results in a better match against income than accruing the item in the year of economic performance. How to amend my 2011 taxes This exception does not apply to workers' compensation or tort liabilities. How to amend my 2011 taxes Amended return. How to amend my 2011 taxes   You may be able to file an amended return and treat a liability as incurred under the recurring item exception. How to amend my 2011 taxes You can do so if economic performance for the liability occurs after you file your tax return for the year, but within 8½ months after the close of the tax year. How to amend my 2011 taxes Recurrence and consistency. How to amend my 2011 taxes   To determine whether an item is recurring and consistently reported, consider the frequency with which the item and similar items are incurred (or expected to be incurred) and how you report these items for tax purposes. How to amend my 2011 taxes A new expense or an expense not incurred every year can be treated as recurring if it is reasonable to expect that it will be incurred regularly in the future. How to amend my 2011 taxes Materiality. How to amend my 2011 taxes   Factors to consider in determining the materiality of a recurring item include the size of the item (both in absolute terms and in relation to your income and other expenses) and the treatment of the item on your financial statements. How to amend my 2011 taxes   An item considered material for financial statement purposes is also considered material for tax purposes. How to amend my 2011 taxes However, in certain situations an immaterial item for financial accounting purposes is treated as material for purposes of economic performance. How to amend my 2011 taxes Matching expenses with income. How to amend my 2011 taxes   Costs directly associated with the revenue of a period are properly allocable to that period. How to amend my 2011 taxes To determine whether the accrual of an expense in a particular year results in a better match with the income to which it relates, generally accepted accounting principles (GAAP; visit www. How to amend my 2011 taxes fasab. How to amend my 2011 taxes gov/accepted. How to amend my 2011 taxes html) are an important factor. How to amend my 2011 taxes   For example, if you report sales income in the year of sale, but you do not ship the goods until the following year, the shipping costs are more properly matched to income in the year of sale than the year the goods are shipped. How to amend my 2011 taxes Expenses that cannot be practically associated with income of a particular period, such as advertising costs, should be assigned to the period the costs are incurred. How to amend my 2011 taxes However, the matching requirement is considered met for certain types of expenses. How to amend my 2011 taxes These expenses include taxes, payments under insurance, warranty, and service contracts, rebates, refunds, awards, prizes, and jackpots. How to amend my 2011 taxes Expenses Paid in Advance An expense you pay in advance is deductible only in the year to which it applies, unless the expense qualifies for the 12-month rule. How to amend my 2011 taxes Under the 12-month rule, a taxpayer is not required to capitalize amounts paid to create certain rights or benefits for the taxpayer that do not extend beyond the earlier of the following. How to amend my 2011 taxes 12 months after the right or benefit begins, or The end of the tax year after the tax year in which payment is made. How to amend my 2011 taxes If you have not been applying the general rule (an expense paid in advance is deductible only in the year to which it applies) and/or the 12-month rule to the expenses you paid in advance, you must get IRS approval before using the general rule and/or the 12-month rule. How to amend my 2011 taxes See Change in Accounting Method, later, for information on how to get IRS approval. How to amend my 2011 taxes See Expense paid in advance under Cash Method, earlier, for examples illustrating the application of the general and 12-month rules. How to amend my 2011 taxes Related Persons Business expenses and interest owed to a related person who uses the cash method of accounting are not deductible until you make the payment and the corresponding amount is includible in the related person's gross income. How to amend my 2011 taxes Determine the relationship for this rule as of the end of the tax year for which the expense or interest would otherwise be deductible. How to amend my 2011 taxes See section 267 of the Internal Revenue Code and Publication 542, Corporations, for the definition of related person. How to amend my 2011 taxes Inventories An inventory is necessary to clearly show income when the production, purchase, or sale of merchandise is an income-producing factor. How to amend my 2011 taxes If you must account for an inventory in your business, you must use an accrual method of accounting for your purchases and sales. How to amend my 2011 taxes However, see Exceptions, next. How to amend my 2011 taxes See also Accrual Method, earlier. How to amend my 2011 taxes To figure taxable income, you must value your inventory at the beginning and end of each tax year. How to amend my 2011 taxes To determine the value, you need a method for identifying the items in your inventory and a method for valuing these items. How to amend my 2011 taxes See Identifying Cost and Valuing Inventory, later. How to amend my 2011 taxes The rules for valuing inventory are not the same for all businesses. How to amend my 2011 taxes The method you use must conform to generally accepted accounting principles for similar businesses and must clearly reflect income. How to amend my 2011 taxes Your inventory practices must be consistent from year to year. How to amend my 2011 taxes The rules discussed here apply only if they do not conflict with the uniform capitalization rules of section 263A and the mark-to-market rules of section 475. How to amend my 2011 taxes Exceptions The following taxpayers can use the cash method of accounting even if they produce, purchase, or sell merchandise. How to amend my 2011 taxes These taxpayers can also account for inventoriable items as materials and supplies that are not incidental (discussed later). How to amend my 2011 taxes A qualifying taxpayer under Revenue Procedure 2001-10 on page 272 of Internal Revenue Bulletin 2001-2, available at www. How to amend my 2011 taxes irs. How to amend my 2011 taxes gov/pub/irs-irbs/irb01–02. How to amend my 2011 taxes pdf. How to amend my 2011 taxes A qualifying small business taxpayer under Revenue Procedure 2002-28, on page 815 of Internal Revenue Bulletin 2002-18, available at www. How to amend my 2011 taxes irs. How to amend my 2011 taxes gov/pub/irs-irbs/irb02–18. How to amend my 2011 taxes pdf. How to amend my 2011 taxes In addition to the information provided in this publication, you should see the revenue procedures referenced in the list, above, and the instructions for Form 3115 for information you will need to adopt or change to these accounting methods (see Changing methods, later). How to amend my 2011 taxes Qualifying taxpayer. How to amend my 2011 taxes   You are a qualifying taxpayer under Revenue Procedure 2001-10 only if: You satisfy the gross receipts test for each prior tax year ending on or after December 17, 1998 (see Gross receipts test for qualifying taxpayers, next). How to amend my 2011 taxes Your average annual gross receipts for each test year (explained in Step 1, listed next) must be $1 million or less. How to amend my 2011 taxes You are not a tax shelter as defined under section 448(d)(3) of the Internal Revenue Code. How to amend my 2011 taxes Gross receipts test for qualifying taxpayers. How to amend my 2011 taxes   To determine if you meet the gross receipts test for qualifying taxpayers, use the following steps: Step 1. How to amend my 2011 taxes List each of the test years. How to amend my 2011 taxes For qualifying taxpayers under Revenue Procedure 2001-10, the test years are each prior tax year ending on or after December 17, 1998. How to amend my 2011 taxes Step 2. How to amend my 2011 taxes Determine your average annual gross receipts for each test year listed in Step 1. How to amend my 2011 taxes Your average annual gross receipts for a tax year is determined by adding the gross receipts for that tax year and the 2 preceding tax years and dividing the total by 3. How to amend my 2011 taxes Step 3. How to amend my 2011 taxes You meet the gross receipts test for qualifying taxpayers if your average annual gross receipts for each test year listed in Step 1 is $1 million or less. How to amend my 2011 taxes Qualifying small business taxpayer. How to amend my 2011 taxes   You are a qualifying small business taxpayer under Revenue Procedure 2002-28 only if: You satisfy the gross receipts test for each prior tax year ending on or after December 31, 2000 (see Gross receipts test for qualifying small business taxpayers, next). How to amend my 2011 taxes Your average annual gross receipts for each test year (explained in Step 1, listed next) must be $10 million or less. How to amend my 2011 taxes You are not prohibited from using the cash method under section 448 of the Internal Revenue Code. How to amend my 2011 taxes Your principle business activity is an eligible business. How to amend my 2011 taxes See Eligible business, later. How to amend my 2011 taxes You have not changed (or have not been required to change) from the cash method because you became ineligible to use the cash method under Revenue Procedure 2002-28. How to amend my 2011 taxes Note. How to amend my 2011 taxes Revenue Procedure 2002-28 does not apply to a farming business of a qualifying small business taxpayer. How to amend my 2011 taxes A taxpayer engaged in the trade or business of farming generally is allowed to use the cash method for any farming business. How to amend my 2011 taxes See Special rules for farming businesses under Cash Method, earlier. How to amend my 2011 taxes Gross receipts test for qualifying small business taxpayers. How to amend my 2011 taxes   To determine if you meet the gross receipts test for qualifying small business taxpayers, use the following steps: Step 1. How to amend my 2011 taxes List each of the test years. How to amend my 2011 taxes For qualifying small business taxpayers under Revenue Procedure 2002-28, the test years are each prior tax year ending on or after December 31, 2000. How to amend my 2011 taxes Step 2. How to amend my 2011 taxes Determine your average annual gross receipts for each test year listed in Step 1. How to amend my 2011 taxes Your average annual gross receipts for a tax year is determined by adding the gross receipts for that tax year and the 2 preceding tax years and dividing the total by 3. How to amend my 2011 taxes Step 3. How to amend my 2011 taxes You meet the gross receipts test for qualifying small business taxpayers if your average annual gross receipts for each test year listed in Step 1 is $10 million or less. How to amend my 2011 taxes Eligible business. How to amend my 2011 taxes   An eligible business is any business for which a qualified small business taxpayer can use the cash method and choose to not keep an inventory. How to amend my 2011 taxes You have an eligible business if you meet any of the following requirements. How to amend my 2011 taxes Your principal business activity is described in a North American Industry Classification System (NAICS) code other than any of the following NAICS subsector codes: NAICS codes 211 and 212 (mining activities). How to amend my 2011 taxes NAICS codes 31-33 (manufacturing). How to amend my 2011 taxes NAICS code 42 (wholesale trade). How to amend my 2011 taxes NAICS codes 44-45 (retail trade). How to amend my 2011 taxes NAICS codes 5111 and 5122 (information industries). How to amend my 2011 taxes Your principal business activity is the provision of services, including the provision of property incident to those services. How to amend my 2011 taxes Your principal business activity is the fabrication or modification of tangible personal property upon demand in accordance with customer design or specifications. How to amend my 2011 taxes   Information about the NAICS codes can be found at http://www. How to amend my 2011 taxes census. How to amend my 2011 taxes gov/naics or in the instructions for your federal income tax return. How to amend my 2011 taxes Gross receipts. How to amend my 2011 taxes   In general, gross receipts must include all receipts from all your trades or businesses that must be recognized under the method of accounting you used for that tax year for federal income tax purposes. How to amend my 2011 taxes See the definit
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Contact My Local Office in Maine

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
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• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

 City Street Address  Days/Hours of Service  Telephone* 
Augusta  68 Sewall St.
Augusta, ME  04330 

Monday-Friday - 8:30 a.m.-4:30 p.m.

 

Services Provided

(207) 622-1508 
Bangor  202 Harlow St.
Bangor, ME  04401 

Monday-Friday - 8:30 a.m.- 4:30 p.m.
(Closed for lunch 11:30 a.m. - 12:30 p.m.)

 

Services Provided

(207) 942-8573 
Lewiston  217 Main St.
Lewiston, ME 04240 

Monday-Friday - 8:30 a.m.- 4:30 p.m. 
(Closed for lunch 1:30 p.m. - 2:30 p.m.)

 

Services Provided

(207) 782-6795 
Presque Isle  36 North St.
Presque Isle, ME  04769 

Monday - Friday - 8:30 a.m. - 4:30 p.m. 
(Closed for lunch 1:00 p.m. - 2:00 p.m.)

 

** This office will be closed 5/14-5/16 and 5/19-5/21**

 

Services Provided

(207) 764-0947 
South Portland  220 Maine Mall Rd.
So. Portland, ME  04106 

Monday-Friday - 8:30 a.m. - 4:30 p.m.
(Closed for lunch 1:00 p.m. - 2:00 p.m.)
 

Services Provided

(207) 879-4683 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses).

For information on where to file your tax return please see Where to File Addresses.

The Taxpayer Advocate Service: Call (207)622-8528 in Augusta or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
220 Maine Mall Rd., 2nd Floor
So. Portland, ME 04106

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The How To Amend My 2011 Taxes

How to amend my 2011 taxes Publication 536 - Main Content Table of Contents NOL Steps How To Figure an NOLNonbusiness deductions (line 6). How to amend my 2011 taxes Nonbusiness income (line 7). How to amend my 2011 taxes Nonbusiness capital losses. How to amend my 2011 taxes Business capital losses. How to amend my 2011 taxes Illustrated Form 1045, Schedule A When To Use an NOLExceptions to 2-Year Carryback Rule Waiving the Carryback Period How To Carry an NOL Back or Forward How To Claim an NOL DeductionDeducting a Carryback Deducting a Carryforward Change in Marital Status Change in Filing Status Illustrated Form 1045 How To Figure an NOL CarryoverIllustrated Form 1045, Schedule B NOL Carryover From 2013 to 2014Worksheet Instructions How To Get Tax HelpLow Income Taxpayer Clinics NOL Steps Follow Steps 1 through 5 to figure and use your NOL. How to amend my 2011 taxes Step 1. How to amend my 2011 taxes   Complete your tax return for the year. How to amend my 2011 taxes You may have an NOL if a negative figure appears on the line below: Individuals — Form 1040, line 41, or Form 1040NR, line 39. How to amend my 2011 taxes Estates and trusts — Form 1041, line 22. How to amend my 2011 taxes   If the amount on that line is not negative, stop here — you do not have an NOL. How to amend my 2011 taxes Step 2. How to amend my 2011 taxes   Determine whether you have an NOL and its amount. How to amend my 2011 taxes See How To Figure an NOL , later. How to amend my 2011 taxes If you do not have an NOL, stop here. How to amend my 2011 taxes Step 3. How to amend my 2011 taxes   Decide whether to carry the NOL back to a past year or to waive the carryback period and instead carry the NOL forward to a future year. How to amend my 2011 taxes See When To Use an NOL , later. How to amend my 2011 taxes Step 4. How to amend my 2011 taxes   Deduct the NOL in the carryback or carryforward year. How to amend my 2011 taxes See How To Claim an NOL Deduction , later. How to amend my 2011 taxes If your NOL deduction is equal to or less than your taxable income without the deduction, stop here — you have used up your NOL. How to amend my 2011 taxes Step 5. How to amend my 2011 taxes   Determine the amount of your unused NOL. How to amend my 2011 taxes See How To Figure an NOL Carryover , later. How to amend my 2011 taxes Carry over the unused NOL to the next carryback or carryforward year and begin again at Step 4. How to amend my 2011 taxes Note. How to amend my 2011 taxes   If your NOL deduction includes more than one NOL amount, apply Step 5 separately to each NOL amount, starting with the amount from the earliest year. How to amend my 2011 taxes How To Figure an NOL If your deductions for the year are more than your income for the year, you may have an NOL. How to amend my 2011 taxes There are rules that limit what you can deduct when figuring an NOL. How to amend my 2011 taxes In general, the following items are not allowed when figuring an NOL. How to amend my 2011 taxes Any deduction for personal exemptions. How to amend my 2011 taxes Capital losses in excess of capital gains. How to amend my 2011 taxes The section 1202 exclusion of the gain from the sale or exchange of qualified small business stock. How to amend my 2011 taxes Nonbusiness deductions in excess of nonbusiness income. How to amend my 2011 taxes The net operating loss deduction. How to amend my 2011 taxes The domestic production activities deduction. How to amend my 2011 taxes Form 1045, Schedule A. How to amend my 2011 taxes   Use Form 1045, Schedule A, to figure an NOL. How to amend my 2011 taxes The following discussion explains Schedule A and includes an illustrated example. How to amend my 2011 taxes   First, complete Form 1045, Schedule A, line 1, using amounts from your return. How to amend my 2011 taxes If line 1 is a negative amount, you may have an NOL. How to amend my 2011 taxes   Next, complete the rest of Form 1045, Schedule A, to figure your NOL. How to amend my 2011 taxes Nonbusiness deductions (line 6). How to amend my 2011 taxes   Enter on line 6 deductions that are not connected to your trade or business or your employment. How to amend my 2011 taxes Examples of deductions not related to your trade or business are: Alimony paid, Deductions for contributions to an IRA or a self-employed retirement plan, Health savings account deduction, Archer medical savings account deduction, Most itemized deductions (except for casualty and theft losses, state income tax on trade and business income, and any employee business expenses), and The standard deduction. How to amend my 2011 taxes   Do not include on line 6 the deduction for personal exemptions for you, your spouse, or your dependents. How to amend my 2011 taxes   Do not enter business deductions on line 6. How to amend my 2011 taxes These are deductions that are connected to your trade or business. How to amend my 2011 taxes They include the following. How to amend my 2011 taxes State income tax on income attributable to trade or business (including wages, salary, and unemployment compensation). How to amend my 2011 taxes Moving expenses. How to amend my 2011 taxes Educator expenses. How to amend my 2011 taxes The deduction for the deductible part of self-employed health insurance. How to amend my 2011 taxes Domestic production activities deduction. How to amend my 2011 taxes Rental losses. How to amend my 2011 taxes Loss on the sale or exchange of business real estate or depreciable property. How to amend my 2011 taxes Your share of a business loss from a partnership or an S corporation. How to amend my 2011 taxes Ordinary loss on the sale or exchange of stock in a small business corporation or a small business investment company. How to amend my 2011 taxes If you itemize your deductions, casualty and theft losses (even if they involve nonbusiness property) and employee business expenses (such as union dues, uniforms, tools, education expenses, and travel and transportation expenses). How to amend my 2011 taxes Loss on the sale of accounts receivable (if you use an accrual method of accounting). How to amend my 2011 taxes Interest and litigation expenses on state and federal income taxes related to your business. How to amend my 2011 taxes Unrecovered investment in a pension or annuity claimed on a decedent's final return. How to amend my 2011 taxes Payment by a federal employee to buy back sick leave used in an earlier year. How to amend my 2011 taxes Nonbusiness income (line 7). How to amend my 2011 taxes   Enter on line 7 only income that is not related to your trade or business or your employment. How to amend my 2011 taxes For example, enter your annuity income, dividends, and interest on investments. How to amend my 2011 taxes Also, include your share of nonbusiness income from partnerships and S corporations. How to amend my 2011 taxes   Do not include on line 7 the income you receive from your trade or business or your employment. How to amend my 2011 taxes This includes salaries and wages, self-employment income, unemployment compensation included in your gross income, and your share of business income from partnerships and S corporations. How to amend my 2011 taxes Also, do not include rental income or ordinary gain from the sale or other disposition of business real estate or depreciable business property. How to amend my 2011 taxes Adjustment for section 1202 exclusion (line 17). How to amend my 2011 taxes   Enter on line 17 any gain you excluded under section 1202 on the sale or exchange of qualified small business stock. How to amend my 2011 taxes Adjustments for capital losses (lines 19–22). How to amend my 2011 taxes   The amount deductible for capital losses is limited based on whether the losses are business capital losses or nonbusiness capital losses. How to amend my 2011 taxes Nonbusiness capital losses. How to amend my 2011 taxes   You can deduct your nonbusiness capital losses (line 2) only up to the amount of your nonbusiness capital gains without regard to any section 1202 exclusion (line 3). How to amend my 2011 taxes If your nonbusiness capital losses are more than your nonbusiness capital gains without regard to any section 1202 exclusion, you cannot deduct the excess. How to amend my 2011 taxes Business capital losses. How to amend my 2011 taxes   You can deduct your business capital losses (line 11) only up to the total of: Your nonbusiness capital gains that are more than the total of your nonbusiness capital losses and excess nonbusiness deductions (line 10), and Your total business capital gains without regard to any section 1202 exclusion (line 12). How to amend my 2011 taxes Domestic production activities deduction (line 23). How to amend my 2011 taxes   You cannot take the domestic production activities deduction when figuring your NOL. How to amend my 2011 taxes Enter on line 23 any domestic production activities deduction claimed on your return. How to amend my 2011 taxes NOLs from other years (line 24). How to amend my 2011 taxes   You cannot deduct any NOL carryovers or carrybacks from other years. How to amend my 2011 taxes Enter the total amount of your NOL deduction for losses from other years. How to amend my 2011 taxes Illustrated Form 1045, Schedule A The following example illustrates how to figure an NOL. How to amend my 2011 taxes It includes filled-in pages 1 and 2 of Form 1040 and Form 1045, Schedule A. How to amend my 2011 taxes Example. How to amend my 2011 taxes Glenn Johnson is in the retail record business. How to amend my 2011 taxes He is single and has the following income and deductions on his Form 1040 for 2013. How to amend my 2011 taxes See the illustrated Form 1040 , later. How to amend my 2011 taxes INCOME   Wages from part-time job $1,225 Interest on savings 425 Net long-term capital gain on sale of real estate used in business 2,000 Glenn's total income $3,650 DEDUCTIONS   Net loss from business (gross income of $67,000 minus expenses of $72,000) $5,000 Net short-term capital loss on sale of stock 1,000 Standard deduction 6,100 Personal exemption 3,900 Glenn's total deductions $16,000 Glenn's deductions exceed his income by $12,350 ($16,000 − $3,650). How to amend my 2011 taxes However, to figure whether he has an NOL, certain deductions are not allowed. How to amend my 2011 taxes He uses Form 1045, Schedule A, to figure his NOL. How to amend my 2011 taxes See the Illustrated Form 1045, Schedule A , later. How to amend my 2011 taxes The following items are not allowed on Form 1045, Schedule A. How to amend my 2011 taxes Nonbusiness net short-term capital loss $1,000 Nonbusiness deductions (standard deduction, $6,100) minus nonbusiness income (interest, $425) 5,675 Deduction for personal exemption 3,900 Total adjustments to net loss $10,575     Therefore, Glenn's NOL for 2013 is figured as follows: Glenn's total 2013 income $3,650 Less:     Glenn's original 2013 total deductions $16,000   Reduced by the disallowed items − 10,575 − 5,425 Glenn's NOL for 2013 $1,775 This image is too large to be displayed in the current screen. How to amend my 2011 taxes Please click the link to view the image. How to amend my 2011 taxes Form 1040, page 1 This image is too large to be displayed in the current screen. How to amend my 2011 taxes Please click the link to view the image. How to amend my 2011 taxes Form 1040, page 2 This image is too large to be displayed in the current screen. How to amend my 2011 taxes Please click the link to view the image. How to amend my 2011 taxes Form 1045, page 2 When To Use an NOL Generally, if you have an NOL for a tax year ending in 2013, 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). How to amend my 2011 taxes You can, however, choose not to carry back an NOL and only carry it forward. How to amend my 2011 taxes See Waiving the Carryback Period , later. How to amend my 2011 taxes You cannot deduct any part of the NOL remaining after the 20-year carryforward period. How to amend my 2011 taxes NOL year. How to amend my 2011 taxes   This is the year in which the NOL occurred. How to amend my 2011 taxes Exceptions to 2-Year Carryback Rule Eligible losses, farming losses, qualified disaster losses, and specified liability losses, all defined next, qualify for longer carryback periods. How to amend my 2011 taxes Eligible loss. How to amend my 2011 taxes   The carryback period for eligible losses is 3 years. How to amend my 2011 taxes Only the eligible loss portion of the NOL can be carried back 3 years. How to amend my 2011 taxes An eligible loss is any part of an NOL that: Is from a casualty or theft, or Is attributable to a federally declared disaster for a qualified small business or certain qualified farming businesses. How to amend my 2011 taxes Qualified small business. How to amend my 2011 taxes   A qualified small business is a sole proprietorship or a partnership that has average annual gross receipts (reduced by returns and allowances) of $5 million or less during the 3-year period ending with the tax year of the NOL. How to amend my 2011 taxes If the business did not exist for this entire 3-year period, use the period the business was in existence. How to amend my 2011 taxes   An eligible loss does not include a farming loss or a qualified disaster loss. How to amend my 2011 taxes Farming loss. How to amend my 2011 taxes   The carryback period for a farming loss is 5 years. How to amend my 2011 taxes Only the farming loss portion of the NOL can be carried back 5 years. How to amend my 2011 taxes A farming loss is the smaller of: The amount that would be the NOL for the tax year if only income and deductions attributable to farming businesses were taken into account, or The NOL for the tax year. How to amend my 2011 taxes Farming business. How to amend my 2011 taxes   A farming business is a trade or business involving cultivation of land or the raising or harvesting of any agricultural or horticultural commodity. How to amend my 2011 taxes A farming business can include operating a nursery or sod farm or raising or harvesting most ornamental trees or trees bearing fruit, nuts, or other crops. How to amend my 2011 taxes The raising, shearing, feeding, caring for, training, and management of animals is also considered a farming business. How to amend my 2011 taxes   A farming business does not include contract harvesting of an agricultural or horticultural commodity grown or raised by someone else. How to amend my 2011 taxes It also does not include a business in which you merely buy or sell plants or animals grown or raised entirely by someone else. How to amend my 2011 taxes Waiving the 5-year carryback. How to amend my 2011 taxes   You can choose to figure the carryback period for a farming loss without regard to the special 5-year carryback rule. How to amend my 2011 taxes To make this choice for 2013, attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are choosing to treat any 2013 farming losses without regard to the special 5-year carryback rule. How to amend my 2011 taxes If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months after the due date of the return (excluding extensions). How to amend my 2011 taxes Attach an election statement to your amended return, and write “Filed pursuant to section 301. How to amend my 2011 taxes 9100-2” at the top of the statement. How to amend my 2011 taxes Once made, this choice is irrevocable. How to amend my 2011 taxes Qualified disaster loss. How to amend my 2011 taxes   The carryback period for a qualified disaster loss is 5 years. How to amend my 2011 taxes Only the qualified disaster loss portion of the NOL can be carried back 5 years. How to amend my 2011 taxes A qualified disaster loss is the smaller of: The sum of: Any losses attributable to a federally declared disaster and occurring before January 1, 2010, in the disaster area, plus Any allowable qualified disaster expenses (even if you did not choose to treat those expenses as deductions in the current year), or The NOL for the tax year. How to amend my 2011 taxes Qualified disaster expenses. How to amend my 2011 taxes   A qualified disaster expense is any capital expense paid or incurred in connection with a trade or business or with business-related property which is: For the abatement or control of hazardous substances that were released as a result of a federally declared disaster occurring before January 1, 2010, For the removal of debris from, or the demolition of structures on, real property which is business-related property damaged or destroyed as a result of a federally declared disaster occurring before January 1, 2010, or For the repair of business-related property damaged as a result of a federally declared disaster occurring before January 1, 2010. How to amend my 2011 taxes Business-related property is property held for use in a trade or business, property held for the production of income, or inventory property. How to amend my 2011 taxes Note. How to amend my 2011 taxes Section 198A allows taxpayers to treat certain capital expenses (qualified disaster expenses) as deductions in the year the expenses were paid or incurred. How to amend my 2011 taxes Excluded losses. How to amend my 2011 taxes   A qualified disaster loss does not include any losses from property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store for which the principal business is the sale of alcoholic beverages for consumption off premises. How to amend my 2011 taxes   A qualified disaster loss also does not include any losses from any gambling or animal racing property. How to amend my 2011 taxes Gambling or animal racing property is any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and the portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. How to amend my 2011 taxes Specified liability loss. How to amend my 2011 taxes   The carryback period for a specified liability loss is 10 years. How to amend my 2011 taxes Only the specified liability loss portion of the NOL can be carried back 10 years. How to amend my 2011 taxes Generally, a specified liability loss is a loss arising from: Product liability and expenses incurred in the investigation or settlement of, or opposition to, product liability claims, or An act (or failure to act) that occurred at least 3 years before the beginning of the loss year and resulted in a liability under a federal or state law requiring: Reclamation of land, Dismantling of a drilling platform, Remediation of environmental contamination, or Payment under any workers compensation act. How to amend my 2011 taxes   Any loss from a liability arising from (1) through (4) above can be taken into account as a specified liability loss only if you used an accrual method of accounting throughout the period in which the act (or failure to act) occurred. How to amend my 2011 taxes For details, see section 172(f). How to amend my 2011 taxes Waiving the 10-year carryback. How to amend my 2011 taxes   You can choose to figure the carryback period for a specified liability loss without regard to the special 10-year carryback rule. How to amend my 2011 taxes To make this choice for 2013 attach to your 2013 income tax return filed by the due date (including extensions) a statement that you are choosing to treat any 2013 specified liability losses without regard to the special 10-year carryback rule. How to amend my 2011 taxes If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months after the due date of the return (excluding extensions). How to amend my 2011 taxes Attach a statement to your amended return and write “Filed pursuant to section 301. How to amend my 2011 taxes 9100-2” at the top of the statement. How to amend my 2011 taxes Once made, this choice is irrevocable. How to amend my 2011 taxes Waiving the Carryback Period You can choose not to carry back your NOL. How to amend my 2011 taxes If you make this choice, then you can use your NOL only in the 20-year carryforward period. How to amend my 2011 taxes (This choice means you also choose not to carry back any alternative tax NOL. How to amend my 2011 taxes ) To make this choice, attach a statement to your original return filed by the due date (including extensions) for the NOL year. How to amend my 2011 taxes This statement must show that you are choosing to waive the carryback period under section 172(b)(3). How to amend my 2011 taxes If you filed your original return on time but did not file the statement with it, you can make this choice on an amended return filed within 6 months of the due date of the return (excluding extensions). How to amend my 2011 taxes Attach a statement to your amended return, and write “Filed pursuant to section 301. How to amend my 2011 taxes 9100-2” at the top of the statement. How to amend my 2011 taxes Once you choose to waive the carryback period, it generally is irrevocable. How to amend my 2011 taxes If you choose to waive the carryback period for more than one NOL, you must make a separate choice and attach a separate statement for each NOL year. How to amend my 2011 taxes If you do not file this statement on time, you cannot waive the carryback period. How to amend my 2011 taxes How To Carry an NOL Back or Forward If you choose to carry back the NOL, you must first carry the entire NOL to the earliest carryback year. How to amend my 2011 taxes If your NOL is not used up, you can carry the rest to the next earliest carryback year, and so on. How to amend my 2011 taxes If you waive the carryback period or do not use up the NOL in the carryback period, carry forward what remains of the NOL to the 20 tax years following the NOL year. How to amend my 2011 taxes Start by carrying it to the first tax year after the NOL year. How to amend my 2011 taxes If you do not use it up, carry the unused part to the next year. How to amend my 2011 taxes Continue to carry any unused part of the NOL forward until the NOL is used up or you complete the 20-year carryforward period. How to amend my 2011 taxes Example 1. How to amend my 2011 taxes You started your business as a sole proprietor in 2013 and had a $42,000 NOL for the year. How to amend my 2011 taxes No part of the NOL qualifies for the 3-year, 5-year, or 10-year carryback. How to amend my 2011 taxes You begin using your NOL in 2011, the second year before the NOL year, as shown in the following chart. How to amend my 2011 taxes Year   Carryback/  Carryover Unused  Loss 2011 $42,000 $40,000 2012 40,000 37,000 2013 (NOL year)     2014 37,000 31,500 2015 31,500 22,500 2016 22,500 12,700 2017 12,700 4,000 2018 4,000 -0- If your loss were larger, you could carry it forward until the year 2033. How to amend my 2011 taxes If you still had an unused 2013 carryforward after the year 2033, you would not be allowed to deduct it. How to amend my 2011 taxes Example 2. How to amend my 2011 taxes Assume the same facts as in Example 1 , except that $4,000 of the NOL is attributable to a casualty loss and this loss qualifies for a 3-year carryback period. How to amend my 2011 taxes You begin using the $4,000 in 2010. How to amend my 2011 taxes As shown in the following chart, $3,000 of this NOL is used in 2010. How to amend my 2011 taxes The remaining $1,000 is carried to 2011 with the $38,000 NOL that you must begin using in 2011. How to amend my 2011 taxes Year   Carryback/  Carryover Unused  Loss 2010 $4,000 $1,000 2011 39,000 37,000 2012 37,000 34,000 2013 (NOL year)     2014 34,000 28,500 2015 28,500 19,500 2016 19,500 9,700 2017 9,700 1,000 2018 1,000 -0- How To Claim an NOL Deduction If you have not already carried the NOL to an earlier year, your NOL deduction is the total NOL. How to amend my 2011 taxes If you carried the NOL to an earlier year, your NOL deduction is the carried over NOL minus the NOL amount you used in the earlier year or years. How to amend my 2011 taxes If you carry more than one NOL to the same year, your NOL deduction is the total of these carrybacks and carryovers. How to amend my 2011 taxes NOL resulting in no taxable income. How to amend my 2011 taxes   If your NOL is more than the taxable income of the year you carry it to (figured before deducting the NOL), you generally will have an NOL carryover to the next year. How to amend my 2011 taxes See How To Figure an NOL Carryover , later, to determine how much NOL you have used and how much you carry to the next year. How to amend my 2011 taxes Deducting a Carryback If you carry back your NOL, you can use either Form 1045 or Form 1040X. How to amend my 2011 taxes You can get your refund faster by using Form 1045, but you have a shorter time to file it. How to amend my 2011 taxes You can use Form 1045 to apply an NOL to all carryback years. How to amend my 2011 taxes If you use Form 1040X, you must use a separate Form 1040X for each carryback year to which you apply the NOL. How to amend my 2011 taxes Estates and trusts that do not file Form 1045 must file an amended Form 1041 (instead of Form 1040X) for each carryback year to which NOLs are applied. How to amend my 2011 taxes Use a copy of the appropriate year's Form 1041, check the “Amended return” box, and follow the Form 1041 instructions for amended returns. How to amend my 2011 taxes Include the NOL deduction with other deductions not subject to the 2% limit (line 15a). How to amend my 2011 taxes Also, see the special procedures for filing an amended return due to an NOL carryback, explained under Form 1040X , later. How to amend my 2011 taxes Form 1045. How to amend my 2011 taxes   You can apply for a quick refund by filing Form 1045. How to amend my 2011 taxes This form results in a tentative adjustment of tax in the carryback year. How to amend my 2011 taxes See the Illustrated Form 1045 . How to amend my 2011 taxes at the end of this discussion. How to amend my 2011 taxes   If the IRS refunds or credits an amount to you from Form 1045 and later determines that the refund or credit is too much, the IRS may assess and collect the excess immediately. How to amend my 2011 taxes   Generally, you must file Form 1045 on or after the date you file your tax return for the NOL year, but not later than one year after the end of the NOL year. How to amend my 2011 taxes If the last day of the NOL year falls on a Saturday, Sunday, or holiday, the form will be considered timely if postmarked on the next business day. How to amend my 2011 taxes For example, if you are a calendar year taxpayer with a carryback from 2013 to 2011, you must file Form 1045 on or after the date you file your tax return for 2013, but no later than December 31, 2014. How to amend my 2011 taxes Form 1040X. How to amend my 2011 taxes   If you do not file Form 1045, you can file Form 1040X to get a refund of tax because of an NOL carryback. How to amend my 2011 taxes File Form 1040X within 3 years after the due date, including extensions, for filing the return for the NOL year. How to amend my 2011 taxes For example, if you are a calendar year taxpayer and filed your 2011 return by the April 15, 2012, due date, you must file a claim for refund of 2008 tax because of an NOL carryback from 2011 by April 15, 2015. How to amend my 2011 taxes   Attach a computation of your NOL using Form 1045, Schedule A, and, if it applies, your NOL carryover using Form 1045, Schedule B, discussed later . How to amend my 2011 taxes Refiguring your tax. How to amend my 2011 taxes   To refigure your total tax liability for a carryback year, first refigure your adjusted gross income for that year. How to amend my 2011 taxes (On Form 1045, use lines 10 and 11 and the “After carryback” column for the applicable carryback year. How to amend my 2011 taxes ) Use your adjusted gross income after applying the NOL deduction to refigure income or deduction items that are based on, or limited to, a percentage of your adjusted gross income. How to amend my 2011 taxes Refigure the following items. How to amend my 2011 taxes The special allowance for passive activity losses from rental real estate activities. How to amend my 2011 taxes Taxable social security and tier 1 railroad retirement benefits. How to amend my 2011 taxes IRA deductions. How to amend my 2011 taxes Excludable savings bond interest. How to amend my 2011 taxes Excludable employer-provided adoption benefits. How to amend my 2011 taxes The student loan interest deduction. How to amend my 2011 taxes The tuition and fees deduction. How to amend my 2011 taxes   If more than one of these items apply, refigure them in the order listed above, using your adjusted gross income after applying the NOL deduction and any previous item. How to amend my 2011 taxes (Enter your NOL deduction on Form 1045, line 10. How to amend my 2011 taxes On line 11, using the “After carryback” column, enter your adjusted gross income refigured after applying the NOL deduction and after refiguring any above items. How to amend my 2011 taxes )   Next, refigure your taxable income. How to amend my 2011 taxes (On Form 1045, use lines 12 through 15 and the “After carryback” column. How to amend my 2011 taxes ) Use your refigured adjusted gross income (Form 1045, line 11, using the “After carryback” column) to refigure certain deductions and other items that are based on or limited to a percentage of your adjusted gross income. How to amend my 2011 taxes Refigure the following items. How to amend my 2011 taxes The itemized deduction for medical expenses. How to amend my 2011 taxes The itemized deduction for qualified mortgage insurance premiums. How to amend my 2011 taxes The itemized deduction for casualty losses. How to amend my 2011 taxes Miscellaneous itemized deductions subject to the 2% limit. How to amend my 2011 taxes The overall limit on itemized deductions (do not apply to carryback years beginning after December 31, 2009). How to amend my 2011 taxes The phaseout of the deduction for exemptions (do not apply to carryback years beginning after December 31, 2009). How to amend my 2011 taxes Qualified motor vehicle tax (do not apply to carryback years beginning after December 31, 2009). How to amend my 2011 taxes    Do not refigure the itemized deduction for charitable contributions. How to amend my 2011 taxes   Finally, use your refigured taxable income (Form 1045, line 15, using the “After carryback” column) to refigure your total tax liability. How to amend my 2011 taxes Refigure your income tax, your alternative minimum tax, and any credits that are based on or limited by your adjusted gross income (AGI), modified adjusted gross income (MAGI), or tax liability. How to amend my 2011 taxes (On Form 1045, use lines 16 through 25, and the “After carryback” column. How to amend my 2011 taxes ) The earned income credit, for example, may be affected by changes to adjusted gross income or the amount of tax (or both) and, therefore, must be recomputed. How to amend my 2011 taxes If you become eligible for a credit because of the carryback, complete the form for that specific credit (such as the EIC Worksheet) for that year. How to amend my 2011 taxes   While it is necessary to refigure your income tax, alternative minimum tax, and credits, do not refigure your self-employment tax. How to amend my 2011 taxes Deducting a Carryforward If you carry forward your NOL to a tax year after the NOL year, list your NOL deduction as a negative figure on the “Other income” line of Form 1040 or Form 1040NR (line 21 for 2013). How to amend my 2011 taxes Estates and trusts include an NOL deduction on Form 1041 with other deductions not subject to the 2% limit (line 15a for 2013). How to amend my 2011 taxes You must attach a statement that shows all the important facts about the NOL. How to amend my 2011 taxes Your statement should include a computation showing how you figured the NOL deduction. How to amend my 2011 taxes If you deduct more than one NOL in the same year, your statement must cover each of them. How to amend my 2011 taxes Change in Marital Status If you and your spouse were not married to each other in all years involved in figuring NOL carrybacks and carryovers, only the spouse who had the loss can take the NOL deduction. How to amend my 2011 taxes If you file a joint return, the NOL deduction is limited to the income of that spouse. How to amend my 2011 taxes For example, if your marital status changes because of death or divorce, and in a later year you have an NOL, you can carry back that loss only to the part of the income reported on the joint return (filed with your former spouse) that was related to your taxable income. How to amend my 2011 taxes After you deduct the NOL in the carryback year, the joint rates apply to the resulting taxable income. How to amend my 2011 taxes Refund limit. How to amend my 2011 taxes   If you are not married in the NOL year (or are married to a different spouse), and in the carryback year you were married and filed a joint return, your refund for the overpaid joint tax may be limited. How to amend my 2011 taxes You can claim a refund for the difference between your share of the refigured tax and your contribution toward the tax paid on the joint return. How to amend my 2011 taxes The refund cannot be more than the joint overpayment. How to amend my 2011 taxes Attach a statement showing how you figured your refund. How to amend my 2011 taxes Figuring your share of a joint tax liability. How to amend my 2011 taxes   There are five steps for figuring your share of the refigured joint tax liability. How to amend my 2011 taxes Figure your total tax as though you had filed as married filing separately. How to amend my 2011 taxes Figure your spouse's total tax as though your spouse had also filed as married filing separately. How to amend my 2011 taxes Add the amounts in (1) and (2). How to amend my 2011 taxes Divide the amount in (1) by the amount in (3). How to amend my 2011 taxes Multiply the refigured tax on your joint return by the amount figured in (4). How to amend my 2011 taxes This is your share of the joint tax liability. How to amend my 2011 taxes Figuring your contribution toward tax paid. How to amend my 2011 taxes   Unless you have an agreement or clear evidence of each spouse's contributions toward the payment of the joint tax liability, figure your contribution by adding the tax withheld on your wages and your share of joint estimated tax payments or tax paid with the return. How to amend my 2011 taxes If the original return for the carryback year resulted in an overpayment, reduce your contribution by your share of the tax refund. How to amend my 2011 taxes Figure your share of a joint payment or refund by the same method used in figuring your share of the joint tax liability. How to amend my 2011 taxes Use your taxable income as originally reported on the joint return in steps (1) and (2) above, and substitute the joint payment or refund for the refigured joint tax in step (5). How to amend my 2011 taxes Change in Filing Status If you and your spouse were married and filed a joint return for each year involved in figuring NOL carrybacks and carryovers, figure the NOL deduction on a joint return as you would for an individual. How to amend my 2011 taxes However, treat the NOL deduction as a joint NOL. How to amend my 2011 taxes If you and your spouse were married and filed separate returns for each year involved in figuring NOL carrybacks and carryovers, the spouse who sustained the loss may take the NOL deduction on a separate return. How to amend my 2011 taxes Special rules apply for figuring the NOL carrybacks and carryovers of married people whose filing status changes for any tax year involved in figuring an NOL carryback or carryover. How to amend my 2011 taxes Separate to joint return. How to amend my 2011 taxes   If you and your spouse file a joint return for a carryback or carryforward year, and were married but filed separate returns for any of the tax years involved in figuring the NOL carryback or carryover, treat the separate carryback or carryover as a joint carryback or carryover. How to amend my 2011 taxes Joint to separate returns. How to amend my 2011 taxes   If you and your spouse file separate returns for a carryback or carryforward year, but filed a joint return for any or all of the tax years involved in figuring the NOL carryover, figure each of your carryovers separately. How to amend my 2011 taxes Joint return in NOL year. How to amend my 2011 taxes   Figure each spouse's share of the joint NOL through the following steps. How to amend my 2011 taxes Figure each spouse's NOL as if he or she filed a separate return. How to amend my 2011 taxes See How To Figure an NOL , earlier. How to amend my 2011 taxes If only one spouse has an NOL, stop here. How to amend my 2011 taxes All of the joint NOL is that spouse's NOL. How to amend my 2011 taxes If both spouses have an NOL, multiply the joint NOL by a fraction, the numerator of which is spouse A's NOL figured in (1) and the denominator of which is the total of the spouses' NOLs figured in (1). How to amend my 2011 taxes The result is spouse A's share of the joint NOL. How to amend my 2011 taxes The rest of the joint NOL is spouse B's share. How to amend my 2011 taxes Example 1. How to amend my 2011 taxes Mark and Nancy are married and file a joint return for 2013. How to amend my 2011 taxes They have an NOL of $5,000. How to amend my 2011 taxes They carry the NOL back to 2011, a year in which Mark and Nancy filed separate returns. How to amend my 2011 taxes Figured separately, Nancy's 2013 deductions were more than her income, and Mark's income was more than his deductions. How to amend my 2011 taxes Mark does not have any NOL to carry back. How to amend my 2011 taxes Nancy can carry back the entire $5,000 NOL to her 2011 separate return. How to amend my 2011 taxes Example 2. How to amend my 2011 taxes Assume the same facts as in Example 1 , except that both Mark and Nancy had deductions in 2013 that were more than their income. How to amend my 2011 taxes Figured separately, his NOL is $1,800 and her NOL is $3,000. How to amend my 2011 taxes The sum of their separate NOLs ($4,800) is less than their $5,000 joint NOL because his deductions included a $200 net capital loss that is not allowed in figuring his separate NOL. How to amend my 2011 taxes The loss is allowed in figuring their joint NOL because it was offset by Nancy's capital gains. How to amend my 2011 taxes Mark's share of their $5,000 joint NOL is $1,875 ($5,000 × $1,800/$4,800) and Nancy's is $3,125 ($5,000 − $1,875). How to amend my 2011 taxes Joint return in previous carryback or carryforward year. How to amend my 2011 taxes   If only one spouse had an NOL deduction on the previous year's joint return, all of the joint carryover is that spouse's carryover. How to amend my 2011 taxes If both spouses had an NOL deduction (including separate carryovers of a joint NOL, figured as explained in the previous discussion ), figure each spouse's share of the joint carryover through the following steps. How to amend my 2011 taxes Figure each spouse's modified taxable income as if he or she filed a separate return. How to amend my 2011 taxes See Modified taxable income under How To Figure an NOL Carryover , later. How to amend my 2011 taxes Multiply the joint modified taxable income you used to figure the joint carryover by a fraction, the numerator of which is spouse A's modified taxable income figured in (1) and the denominator of which is the total of the spouses' modified taxable incomes figured in (1). How to amend my 2011 taxes This is spouse A's share of the joint modified taxable income. How to amend my 2011 taxes Subtract the amount figured in (2) from the joint modified taxable income. How to amend my 2011 taxes This is spouse B's share of the joint modified taxable income. How to amend my 2011 taxes Reduce the amount figured in (3), but not below zero, by spouse B's NOL deduction. How to amend my 2011 taxes Add the amounts figured in (2) and (4). How to amend my 2011 taxes Subtract the amount figured in (5) from spouse A's NOL deduction. How to amend my 2011 taxes This is spouse A's share of the joint carryover. How to amend my 2011 taxes The rest of the joint carryover is spouse B's share. How to amend my 2011 taxes Example. How to amend my 2011 taxes Sam and Wanda filed a joint return for 2011 and separate returns for 2012 and 2013. How to amend my 2011 taxes In 2013, Sam had an NOL of $18,000 and Wanda had an NOL of $2,000. How to amend my 2011 taxes They choose to carry back both NOLs 2 years to their 2011 joint return and claim a $20,000 NOL deduction. How to amend my 2011 taxes Their joint modified taxable income (MTI) for 2011 is $15,000, and their joint NOL carryover to 2012 is $5,000 ($20,000 – $15,000). How to amend my 2011 taxes Sam and Wanda each figure their separate MTI for 2011 as if they had filed separate returns. How to amend my 2011 taxes Then they figure their shares of the $5,000 carryover as follows. How to amend my 2011 taxes Step 1. How to amend my 2011 taxes   Sam's separate MTI $9,000 Wanda's separate MTI + 3,000 Total MTI $12,000 Step 2. How to amend my 2011 taxes   Joint MTI $15,000 Sam's MTI ÷ total MTI ($9,000 ÷ $12,000) × . How to amend my 2011 taxes 75 Sam's share of joint MTI $11,250 Step 3. How to amend my 2011 taxes   Joint MTI $15,000 Sam's share of joint MTI − 11,250 Wanda's share of joint MTI $3,750 Step 4. How to amend my 2011 taxes   Wanda's share of joint MTI $3,750 Wanda's NOL deduction − 2,000 Wanda's remaining share $1,750 Step 5. How to amend my 2011 taxes   Sam's share of joint MTI $11,250 Wanda's remaining share + 1,750 Joint MTI to be offset $13,000 Step 6. How to amend my 2011 taxes   Sam's NOL deduction $18,000 Joint MTI to be offset − 13,000 Sam's carryover to 2012 $5,000 Joint carryover to 2012 $5,000 Sam's carryover − 5,000 Wanda's carryover to 2012 $-0- Wanda's $2,000 NOL deduction offsets $2,000 of her $3,750 share of the joint modified taxable income and is completely used up. How to amend my 2011 taxes She has no carryover to 2012. How to amend my 2011 taxes Sam's $18,000 NOL deduction offsets all of his $11,250 share of joint modified taxable income and the remaining $1,750 of Wanda's share. How to amend my 2011 taxes His carryover to 2012 is $5,000. How to amend my 2011 taxes Illustrated Form 1045 The following example illustrates how to use Form 1045 to claim an NOL deduction in a carryback year. How to amend my 2011 taxes It includes a filled-in page 1 of Form 1045. How to amend my 2011 taxes Example. How to amend my 2011 taxes Martha Sanders is a self-employed contractor. How to amend my 2011 taxes Martha's 2013 deductions are more than her 2013 income because of a business loss. How to amend my 2011 taxes She uses Form 1045 to carry back her NOL 2 years and claim an NOL deduction in 2011. How to amend my 2011 taxes Her filing status in both years was single. How to amend my 2011 taxes See the filled-in Form 1045 later. How to amend my 2011 taxes Martha figures her 2013 NOL on Form 1045, Schedule A (not shown). How to amend my 2011 taxes (For an example using Form 1045, Schedule A, see Illustrated Form 1045, Schedule A under How To Figure an NOL , earlier. How to amend my 2011 taxes ) She enters the $10,000 NOL from Form 1045, Schedule A, line 25, on Form 1045, line 1a. How to amend my 2011 taxes Martha completes lines 10 through 25, using the “Before carryback” column under the column for the second preceding tax year ended 12/31/11 on page 1 of Form 1045 using the following amounts from her 2011 return. How to amend my 2011 taxes 2011 Adjusted gross income $50,000 Itemized deductions:     Medical expenses [$6,000 − ($50,000 × 7. How to amend my 2011 taxes 5%)] $2,250   State income tax + 2,000   Real estate tax + 4,000   Home mortgage interest + 5,000   Total itemized deductions $13,250 Exemption $3,700 Income tax $4,550 Self-employment tax $6,120   Martha refigures her taxable income for 2011 after carrying back her 2013 NOL as follows: 2011 Adjusted gross income $50,000 Less:     NOL from 2013 −10,000 2011 Adjusted gross income after carryback $40,000 Less:     Itemized deductions:     Medical expenses [$6,000 − ($40,000 × 7. How to amend my 2011 taxes 5%)] $3,000   State income tax + 2,000   Real estate tax + 4,000   Home mortgage interest + 5,000   Total itemized deductions −14,000 Less:     Exemption − 3,700 2011 Taxable income after carryback $22,300 Martha then completes lines 10 through 25, using the “After carryback” column under the column for the second preceding tax year ended 12/31/11. How to amend my 2011 taxes On line 10, Martha enters her $10,000 NOL deduction. How to amend my 2011 taxes Her new adjusted gross income on line 11 is $40,000 ($50,000 − $10,000). How to amend my 2011 taxes To complete line 12, she must refigure her medical expense deduction using her new adjusted gross income. How to amend my 2011 taxes Her refigured medical expense deduction is $3,000 [$6,000 − ($40,000 × 7. How to amend my 2011 taxes 5%)]. How to amend my 2011 taxes This increases her total itemized deductions to $14,000 [$13,250 + ($3,000 − $2,250)]. How to amend my 2011 taxes Martha uses her refigured taxable income ($22,300) from line 15, and the tax tables in her 2011 Form 1040 instructions to find her income tax. How to amend my 2011 taxes She enters the new amount, $2,924, on line 16, and her new total tax liability, $9,044, on line 25. How to amend my 2011 taxes Martha used up her $10,000 NOL in 2011 so she does not complete a column for the first preceding tax year ended 12/31/2012. How to amend my 2011 taxes The decrease in tax because of her NOL deduction (line 27) is $1,612. How to amend my 2011 taxes Martha files Form 1045 after filing her 2013 return, but no later than December 31, 2014. How to amend my 2011 taxes She mails it to the Internal Revenue Service Center for the place where she lives as shown in the 2013 instructions for Form 1040 and attaches a copy of her 2013 return (including the applicable forms and schedules). How to amend my 2011 taxes This image is too large to be displayed in the current screen. How to amend my 2011 taxes Please click the link to view the image. How to amend my 2011 taxes Form 1045, page 1 How To Figure an NOL Carryover If your NOL is more than your taxable income for the year to which you carry it (figured before deducting the NOL), you may have an NOL carryover. How to amend my 2011 taxes You must make certain modifications to your taxable income to determine how much NOL you will use up in that year and how much you can carry over to the next tax year. How to amend my 2011 taxes Your carryover is the excess of your NOL deduction over your modified taxable income for the carryback or carryforward year. How to amend my 2011 taxes If your NOL deduction includes more than one NOL, apply the NOLs against your modified taxable income in the same order in which you incurred them, starting with the earliest. How to amend my 2011 taxes Modified taxable income. How to amend my 2011 taxes   Your modified taxable income is your taxable income figured with the following changes. How to amend my 2011 taxes You cannot claim an NOL deduction for the NOL carryover you are figuring or for any later NOL. How to amend my 2011 taxes You cannot claim a deduction for capital losses in excess of your capital gains. How to amend my 2011 taxes Also, you must increase your taxable income by the amount of any section 1202 exclusion. How to amend my 2011 taxes You cannot claim the domestic production activities deduction. How to amend my 2011 taxes You cannot claim a deduction for your exemptions for yourself, your spouse, or dependents. How to amend my 2011 taxes You must figure any item affected by the amount of your adjusted gross income after making the changes in (1), (2), and (3), above, and certain other changes to your adjusted gross income that result from (1), (2), and (3). How to amend my 2011 taxes This includes income and deduction items used to figure adjusted gross income (for example, IRA deductions), as well as certain itemized deductions. How to amend my 2011 taxes To figure a charitable contribution deduction, do not include deductions for NOL carrybacks in the change in (1) but do include deductions for NOL carryforwards from tax years before the NOL year. How to amend my 2011 taxes   Your taxable income as modified cannot be less than zero. How to amend my 2011 taxes Form 1045, Schedule B. How to amend my 2011 taxes   You can use Form 1045, Schedule B, to figure your modified taxable income for carryback years and your carryover from each of those years. How to amend my 2011 taxes Do not use Form 1045, Schedule B, for a carryforward year. How to amend my 2011 taxes If your 2013 return includes an NOL deduction from an NOL year before 2013 that reduced your taxable income to zero (to less than zero, if an estate or trust), see NOL Carryover From 2013 to 2014 , later. How to amend my 2011 taxes Illustrated Form 1045, Schedule B The following example illustrates how to figure an NOL carryover from a carryback year. How to amend my 2011 taxes It includes a filled-in Form 1045, Schedule B. How to amend my 2011 taxes Example. How to amend my 2011 taxes Ida Brown runs a small clothing shop. How to amend my 2011 taxes In 2013, she has an NOL of $36,000 that she carries back to 2011. How to amend my 2011 taxes She has no other carrybacks or carryforwards to 2011. How to amend my 2011 taxes Ida's adjusted gross income in 2011 was $35,000, consisting of her salary of $36,000 minus a $1,000 capital loss deduction. How to amend my 2011 taxes She is single and claimed only one personal exemption of $3,700. How to amend my 2011 taxes During that year, she gave $1,450 in charitable contributions. How to amend my 2011 taxes Her medical expenses were $3,000. How to amend my 2011 taxes She also deducted $1,650 in taxes and $3,125 in home mortgage interest. How to amend my 2011 taxes Her deduction for charitable contributions was not limited because her contributions, $1,450, were less than 50% of her adjusted gross income. How to amend my 2011 taxes The deduction for medical expenses was limited to expenses over 7. How to amend my 2011 taxes 5% of adjusted gross income (. How to amend my 2011 taxes 075 × $35,000 = $2,625; $3,000 − $2,625 = $375). How to amend my 2011 taxes The deductions for taxes and home mortgage interest were not subject to any limits. How to amend my 2011 taxes She was able to claim $6,600 ($1,450 + $375 + $1,650 + $3,125) in itemized deductions and a personal exemption deduction of $3,700 for 2011. How to amend my 2011 taxes She had no other deductions in 2011 (except the NOL deduction). How to amend my 2011 taxes Her taxable income (figured without the NOL deduction) for the year was $24,700. How to amend my 2011 taxes Ida's adjusted gross income in 2012 was $9,325, consisting of net business income from the clothing shop of $12,325 and a net capital loss of $3,000. How to amend my 2011 taxes She did not itemize her deductions in 2012. How to amend my 2011 taxes She deducted the standard deduction of $5,950 and the personal exemption deduction of $3,800. How to amend my 2011 taxes She had no other deductions in 2012 (other than the NOL deduction). How to amend my 2011 taxes Her taxable income, therefore, was ($425). How to amend my 2011 taxes Ida's $36,000 carryback will result in her having 2011 taxable income of zero. How to amend my 2011 taxes She then completes the column for the second preceding tax year ended 12/31/11 on Form 1045, Schedule B, to figure how much of her NOL she uses up in 2011 and how much she can carry over to 2012. How to amend my 2011 taxes She completes the column for the first preceding tax year ended 12/31/12. How to amend my 2011 taxes See the illustrated Form 1045, Schedule B , shown later. How to amend my 2011 taxes Column 1, line 1. How to amend my 2011 taxes Ida enters $36,000, her 2013 net operating loss, on line 1. How to amend my 2011 taxes Column 1, line 2. How to amend my 2011 taxes She enters $24,700, her 2011 taxable income (figured without the NOL deduction), on line 2. How to amend my 2011 taxes Column 1, line 3. How to amend my 2011 taxes Ida enters her net capital loss deduction of $1,000 on line 3. How to amend my 2011 taxes Column 1, lines 4 and 5. How to amend my 2011 taxes Ida had no section 1202 exclusion or domestic production activities deduction in 2011. How to amend my 2011 taxes She enters zero on lines 4 and 5. How to amend my 2011 taxes Column 1, line 6. How to amend my 2011 taxes Although Ida's entry on line 3 modifies her adjusted gross income, that does not affect any other items included in her adjusted gross income. How to amend my 2011 taxes Ida enters zero on line 6. How to amend my 2011 taxes Column 1, line 7. How to amend my 2011 taxes Ida had itemized deductions and entered $1,000 on line 3, so she completes lines 11 through 38 to figure her adjustment to itemized deductions. How to amend my 2011 taxes On line 7, she enters the total adjustment from line 38. How to amend my 2011 taxes Column 1, line 8. How to amend my 2011 taxes Ida enters the deduction for her personal exemption of $3,700 for 2011. How to amend my 2011 taxes Column 1, line 9. How to amend my 2011 taxes After combining lines 2 through 8, Ida's modified taxable income is $29,475. How to amend my 2011 taxes Column 1, line 10. How to amend my 2011 taxes Ida figures her carryover to 2012 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). How to amend my 2011 taxes She enters the $6,525 carryover on line 10. How to amend my 2011 taxes She also enters the $6,525 as her NOL deduction for 2012 on Form 1045, page 1, line 10, in the “After carryback” column under the column for the first preceding tax year ended 12/31/12. How to amend my 2011 taxes (For an illustrated example of page 1 of Form 1045, see Illustrated Form 1045 under How To Claim an NOL Deduction , earlier. How to amend my 2011 taxes ) Next, Ida completes column 2 for the first preceding tax year ended 12/31/12. How to amend my 2011 taxes Column 1, line 11. How to amend my 2011 taxes Ida's adjusted gross income for 2011 was $35,000. How to amend my 2011 taxes Column 1, line 12. How to amend my 2011 taxes She adds lines 3 through 6 and enters $1,000 on line 12. How to amend my 2011 taxes (This is her net capital loss deduction added back, which modifies her adjusted gross income. How to amend my 2011 taxes ) Column 1, line 13. How to amend my 2011 taxes Her modified adjusted gross income for 2011 is now $36,000. How to amend my 2011 taxes Column 1, line 14. How to amend my 2011 taxes On her 2011 tax return, she deducted $375 as medical expenses. How to amend my 2011 taxes Column 1, line 15. How to amend my 2011 taxes Her actual medical expenses were $3,000. How to amend my 2011 taxes Column 1, line 16. How to amend my 2011 taxes She multiplies her modified adjusted gross income, $36,000, by . How to amend my 2011 taxes 075. How to amend my 2011 taxes She enters $2,700 on line 16. How to amend my 2011 taxes Column 1, line 17. How to amend my 2011 taxes She substracts $2,700 from her actual medical expenses, $3,000. How to amend my 2011 taxes She enters $300 on line 17. How to amend my 2011 taxes This is her modified medical deduction. How to amend my 2011 taxes Column 1, line 18. How to amend my 2011 taxes The difference between her medical deduction and her modified medical deduction is $75. How to amend my 2011 taxes She enters this on line 18. How to amend my 2011 taxes Column 1, lines 19 through 21. How to amend my 2011 taxes Ida had no deduction for qualified mortgage insurance premiums in 2011. How to amend my 2011 taxes She skips lines 19 and 20 and enters zero on line 21. How to amend my 2011 taxes Column 1, line 22. How to amend my 2011 taxes She enters her modified adjusted gross income of $36,000 on line 22. How to amend my 2011 taxes Column 1, line 23. How to amend my 2011 taxes She had no other carrybacks to 2011 and enters zero on line 23. How to amend my 2011 taxes Column 1, line 24. How to amend my 2011 taxes Her modified adjusted gross income remains $36,000. How to amend my 2011 taxes Column 1, line 25. How to amend my 2011 taxes Her actual contributions for 2011 were $1,450, which she enters on line 25. How to amend my 2011 taxes Column 1, line 26. How to amend my 2011 taxes She now refigures her charitable contributions based on her modified adjusted gross income. How to amend my 2011 taxes Her contributions are well below the 50% limit, so she enters $1,450 on line 26. How to amend my 2011 taxes Column 1, line 27. How to amend my 2011 taxes The difference is zero. How to amend my 2011 taxes Column 1, lines 28 through 37. How to amend my 2011 taxes Ida had no casualty losses or deductions for miscellaneous items in 2011. How to amend my 2011 taxes She skips lines 28 through 31 and lines 33 through 36. How to amend my 2011 taxes Ida enters zero on lines 32 and 37. How to amend my 2011 taxes Column 1, line 38. How to amend my 2011 taxes She combines lines 18, 21, 27, 32, and 37 and enters $75 on line 38. How to amend my 2011 taxes She carries this figure to line 7. How to amend my 2011 taxes Column 2, line 1. How to amend my 2011 taxes Ida enters $6,525, the carryback of her 2013 NOL to 2012, from column 1, line 10, on line 1. How to amend my 2011 taxes Column 2, line 2. How to amend my 2011 taxes She enters ($425), her 2012 taxable income, on line 2. How to amend my 2011 taxes Column 2, line 3. How to amend my 2011 taxes Ida enters her net capital loss deduction of $3,000 on line 3. How to amend my 2011 taxes Column 2, lines 4 and 5. How to amend my 2011 taxes Ida had no section 1202 exclusion or domestic production activities deduction in 2012. How to amend my 2011 taxes She enters zero on lines 4 and 5. How to amend my 2011 taxes Column 2, line 6. How to amend my 2011 taxes Although Ida's entry on line 3 modifies her adjusted gross income, that does not affect any other items included in her adjusted gross income. How to amend my 2011 taxes Ida enters zero on line 6. How to amend my 2011 taxes Column 2, line 7. How to amend my 2011 taxes Because Ida did not itemize deductions on her 2012 tax return, she enters zero on line 7. How to amend my 2011 taxes Column 2, line 8. How to amend my 2011 taxes Ida enters the deduction for her personal exemption of $3,800 for 2012. How to amend my 2011 taxes Column 2, line 9. How to amend my 2011 taxes After combining lines 2 through 8, Ida's modified taxable income is $6,375. How to amend my 2011 taxes Column 2, line 10. How to amend my 2011 taxes Ida figures her carryforward to 2014 by subtracting her modified taxable income (line 9) from her NOL deduction (line 1). How to amend my 2011 taxes She enters the $150 carryover on line 10. How to amend my 2011 taxes This image is too large to be displayed in the current screen. How to amend my 2011 taxes Please click the link to view the image. How to amend my 2011 taxes Form 1045, page 3 This image is too large to be displayed in the current screen. How to amend my 2011 taxes Please click the link to view the image. How to amend my 2011 taxes Form 1045, page 4 NOL Carryover From 2013 to 2014 If you had an NOL deduction carried forward from a year prior to 2013 that resulted in your having taxable income on your 2013 return of zero (of less than zero, if an estate or trust), complete Table 1 , Worksheet for NOL Carryover From 2013 to 2014, on the following pages. How to amend my 2011 taxes It will help you figure your NOL to carry to 2014. How to amend my 2011 taxes Keep the worksheet for your records. How to amend my 2011 taxes Worksheet Instructions At the top of the worksheet, enter the NOL year for which you are figuring the carryover. How to amend my 2011 taxes More than one NOL. How to amend my 2011 taxes   If your 2013 NOL deduction includes amounts for more than one loss year, complete this worksheet only for one loss year. How to amend my 2011 taxes To determine which year, start with your earliest NOL and subtract each NOL separately from your taxable income figured without the NOL deduction. How to amend my 2011 taxes Complete this worksheet for the earliest NOL that results in your having taxable income below zero. How to amend my 2011 taxes Your NOL carryover to 2014 is the total of the amount on line 10 of the worksheet and all later NOL amounts. How to amend my 2011 taxes Example. How to amend my 2011 taxes Your taxable income for 2013 is $5,000 without your $9,000 NOL deduction. How to amend my 2011 taxes Your NOL deduction includes a $2,000 carryover from 2011 and a $7,000 carryover from 2012. How to amend my 2011 taxes Subtract your 2011 NOL of $2,000 from $5,000. How to amend my 2011 taxes This gives you taxable income of $3,000. How to amend my 2011 taxes Your 2011 NOL is now completely used up. How to amend my 2011 taxes Subtract your $7,000 2012 NOL from $3,000. How to amend my 2011 taxes This gives you taxable income of ($4,000). How to amend my 2011 taxes You now complete the worksheet for your 2012 NOL. How to amend my 2011 taxes Your NOL carryover to 2014 is the unused part of your 2012 NOL from line 10 of the worksheet. How to amend my 2011 taxes Line 2. How to amend my 2011 taxes   Treat your NOL deduction for the NOL year entered at the top of the worksheet and later years as a positive amount. How to amend my 2011 taxes Add it to your negative taxable income (figured without the NOL deduction). How to amend my 2011 taxes Enter the result on line 2. How to amend my 2011 taxes Line 6. How to amend my 2011 taxes   You must refigure the following income and deductions based on adjusted gross income. How to amend my 2011 taxes The special allowance for passive activity losses from rental real estate activities. How to amend my 2011 taxes Taxable social security and tier 1 railroad retirement benefits. How to amend my 2011 taxes IRA deductions. How to amend my 2011 taxes Excludable savings bond interest. How to amend my 2011 taxes Excludable employer-provided adoption benefits. How to amend my 2011 taxes The student loan interest deduction. How to amend my 2011 taxes The tuition and fees deduction. How to amend my 2011 taxes   If none of these items apply to you, enter zero on line 6. How to amend my 2011 taxes Otherwise, increase your adjusted gross income by the total of lines 3 through 5 and your NOL deduction for the NOL year entered at the top of the worksheet and later years. How to amend my 2011 taxes Using this increased adjusted gross income, refigure the items that apply, in the order listed above. How to amend my 2011 taxes Your adjustment for each item is the difference between the refigured amount and the amount included on your return. How to amend my 2011 taxes Combine the adjustments for previous items with your adjusted gross income before refiguring the next item. How to amend my 2011 taxes Keep a record of your computations. How to amend my 2011 taxes   Enter your total adjustments for the above items on line 6. How to amend my 2011 taxes Line 7. How to amend my 2011 taxes   Enter zero if you claimed the standard deduction or the amounts on lines 3 through 5 are zero. How to amend my 2011 taxes Otherwise, use lines 11 through 33 of the worksheet to figure the amount to enter on this line. How to amend my 2011 taxes Complete only those sections that apply to you. How to amend my 2011 taxes Estates and trusts. How to amend my 2011 taxes   Enter zero on line 7 if you did not claim any miscellaneous deductions on Form 1041, line 15c, or a casualty or theft loss. How to amend my 2011 taxes Otherwise, refigure these deductions by substituting modified adjusted gross income (see below ) for adjusted gross income. How to amend my 2011 taxes Subtract the recomputed deductions from those claimed on the return. How to amend my 2011 taxes Enter the result on line 7. How to amend my 2011 taxes Modified adjusted gross income. How to amend my 2011 taxes   To refigure miscellaneous itemized deductions of an estate or trust (Form 1041, line 15c), modified adjusted gross income is the total of the following amounts. How to amend my 2011 taxes The adjusted gross income on the return. How to amend my 2011 taxes The amounts from lines 3 through 5 of the worksheet. How to amend my 2011 taxes The exemption amount from Form 1041, line 20. How to amend my 2011 taxes The NOL deduction for the NOL year entered at the top of the worksheet and for later years. How to amend my 2011 taxes   To refigure the casualty and theft loss deduction of an estate or trust, modified adjusted gross income is the total of the following amounts. How to amend my 2011 taxes The adjusted gross income amount you used to figure the deduction claimed on the return. How to amend my 2011 taxes The amounts from lines 3 through 5 of the worksheet. How to amend my 2011 taxes The NOL deduction for the NOL year entered at the top of the worksheet and for later years. How to amend my 2011 taxes Line 11. How to amend my 2011 taxes   Treat your NOL deduction for the NOL year entered at the top of the worksheet and for later years as a positive amount. How to amend my 2011 taxes Add it to your adjusted gross income. How to amend my 2011 taxes Enter the result on line 11. How to amend my 2011 taxes Line 20. How to amend my 2011 taxes   Is your modified adjusted gross income from line 13 of this worksheet more than $100,000 ($50,000 if married filing separately)?   □ Yes. How to amend my 2011 taxes Your deduction is limited. How to amend my 2011 taxes Refigure your deduction using the Mortgage Insurance Premiums Deduction Worksheet in the 2013 Instructions for Form 1045. How to amend my 2011 taxes On line 2 of the Mortgage Insurance Premiums Deduction Worksheet, enter the amount from line 13 of this worksheet. How to amend my 2011 taxes   □ No. How to amend my 2011 taxes Your deduction is not limited. How to amend my 2011 taxes Enter the amount from line 19 on line 20 and enter -0- on line 21. How to amend my 2011 taxes Line 23. How to amend my 2011 taxes   If you had a contributions carryover from 2012 to 2013 and your NOL deduction includes an amount from an NOL year before 2012, you may have to reduce your contributions carryover. How to amend my 2011 taxes Reduce the contributions carryover by the amount of any adjustment you made to your 2012 charitable contributions deduction when figuring your NOL carryover to 2013. How to amend my 2011 taxes Use the reduced contributions carryover to figure the amount to enter on line 23. How to amend my 2011 taxes Please click here for the text description of the image. How to amend my 2011 taxes Worksheet for NOL Carryover Worksheet for NOL Carryover (Continued) How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. How to amend my 2011 taxes Free help with your tax return. How to amend my 2011 taxes   You can get free help preparing your return nationwide from IRS-certified volunteers. How to amend my 2011 taxes The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. How to amend my 2011 taxes The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. How to amend my 2011 taxes Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. How to amend my 2011 taxes In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. How to amend my 2011 taxes To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. How to amend my 2011 taxes gov, download the IRS2Go app, or call 1-800-906-9887. How to amend my 2011 taxes   As part of the TCE program, AARP offers the Tax-Aide counseling program. How to amend my 2011 taxes To find the nearest AARP Tax-Aide site, visit AARP's website at www. How to amend my 2011 taxes aarp. How to amend my 2011 taxes org/money/taxaide or call 1-888-227-7669. How to amend my 2011 taxes For more information on these programs, go to IRS. How to amend my 2011 taxes gov and enter “VITA” in the search box. How to amend my 2011 taxes Internet. How to amend my 2011 taxes    IRS. How to amend my 2011 taxes gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. How to amend my 2011 taxes Download the free IRS2Go app from the iTunes app store or from Google Play. How to amend my 2011 taxes Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. How to amend my 2011 taxes Check the status of your 2013 refund with the Where's My Refund? application on IRS. How to amend my 2011 taxes gov or download the IRS2Go app and select the Refund Status option. How to amend my 2011 taxes The IRS issues more than 9 out of 10 refunds in less than 21 days. How to amend my 2011 taxes Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. How to amend my 2011 taxes You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. How to amend my 2011 taxes The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. How to amend my 2011 taxes Use the Interactive Tax Assistant (ITA) to research your tax questions. How to amend my 2011 taxes No need to wait on the phone or stand in line. How to amend my 2011 taxes The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. How to amend my 2011 taxes When you reach the response screen, you can print the entire interview and the final response for your records. How to amend my 2011 taxes New subject areas are added on a regular basis. How to amend my 2011 taxes  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. How to amend my 2011 taxes gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. How to amend my 2011 taxes You can use the IRS Tax Map to search publications and instructions by topic or keyword. How to amend my 2011 taxes The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. How to amend my 2011 taxes When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. How to amend my 2011 taxes Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. How to amend my 2011 taxes You can also ask the IRS to mail a return or an account transcript to you. How to amend my 2011 taxes Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. How to amend my 2011 taxes gov or by calling 1-800-908-9946. How to amend my 2011 taxes Tax return and tax account transcripts are generally available for the current year and the past three years. How to amend my 2011 taxes Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. How to amend my 2011 taxes Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. How to amend my 2011 taxes If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. How to amend my 2011 taxes Check the status of your amended return using Where's My Amended Return? Go to IRS. How to amend my 2011 taxes gov and enter Where's My Amended Return? in the search box. How to amend my 2011 taxes You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. How to amend my 2011 taxes It can take up to 3 weeks from the date you mailed it to show up in our system. How to amend my 2011 taxes Make a payment using one of several safe and convenient electronic payment options available on IRS. How to amend my 2011 taxes gov. How to amend my 2011 taxes Select the Payment tab on the front page of IRS. How to amend my 2011 taxes gov for more information. How to amend my 2011 taxes Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. How to amend my 2011 taxes Figure your income tax withholding with the IRS Withholding Calculator on IRS. How to amend my 2011 taxes gov. How to amend my 2011 taxes Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. How to amend my 2011 taxes Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. How to amend my 2011 taxes gov. How to amend my 2011 taxes Request an Electronic Filing PIN by going to IRS. How to amend my 2011 taxes gov and entering Electronic Filing PIN in the search box. How to amend my 2011 taxes Download forms, instructions and publications, including accessible versions for people with disabilities. How to amend my 2011 taxes Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. How to amend my 2011 taxes gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. How to amend my 2011 taxes An employee can answer questions about your tax account or help you set up a payment plan. How to amend my 2011 taxes Before you visit, check the Office Locator on IRS. How to amend my 2011 taxes gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. How to amend my 2011 taxes If you have a special need, such as a disability, you can request an appointment. How to amend my 2011 taxes Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. How to amend my 2011 taxes Apply for an Employer Identification Number (EIN). How to amend my 2011 taxes Go to IRS. How to amend my 2011 taxes gov and enter Apply for an EIN in the search box. How to amend my 2011 taxes Read the Internal Revenue Code, regulations, or other official guidance. How to amend my 2011 taxes Read Internal Revenue Bulletins. How to amend my 2011 taxes Sign up to receive local and national tax news and more by email. How to amend my 2011 taxes Just click on “subscriptions” above the search box on IRS. How to amend my 2011 taxes gov and choose from a variety of options. How to amend my 2011 taxes Phone. How to amend my 2011 taxes    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. How to amend my 2011 taxes Download the free IRS2Go app from the iTunes app store or from Google Play. How to amend my 2011 taxes Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. How to amend my 2011 taxes gov, or download the IRS2Go app. How to amend my 2011 taxes Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. How to amend my 2011 taxes The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. How to amend my 2011 taxes Most VITA and TCE sites offer free electronic filing. How to amend my 2011 taxes Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. How to amend my 2011 taxes Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. How to amend my 2011 taxes Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. How to amend my 2011 taxes If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. How to amend my 2011 taxes The IRS issues more than 9 out of 10 refunds in less than 21 days. How to amend my 2011 taxes Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. How to amend my 2011 taxes Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. How to amend my 2011 taxes The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. How to amend my 2011 taxes Note, the above information is for our automated hotline. How to amend my 2011 taxes Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. How to amend my 2011 taxes Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. How to amend my 2011 taxes You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. How to amend my 2011 taxes It can take up to 3 weeks from the date you mailed it to show up in our system. How to amend my 2011 taxes Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). How to amend my 2011 taxes You should receive your order within 10 business days. How to amend my 2011 taxes Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. How to amend my 2011 taxes If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. How to amend my 2011 taxes Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. How to amend my 2011 taxes The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. How to amend my 2011 taxes These individuals can also contact the IRS through relay services such as the Federal Relay Service. How to amend my 2011 taxes Walk-in. How to amend my 2011 taxes   You can find a selection of forms, publications and services — in person. How to amend my 2011 taxes Products. How to amend my 2011 taxes You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. How to amend my 2011 taxes Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. How to amend my 2011 taxes Services. How to amend my 2011 taxes You can walk in to your local TAC for face-to-face tax help. How to amend my 2011 taxes An employee can answer questions about your tax account or help you set up a payment plan. How to amend my 2011 taxes Before visiting, use the Office Locator tool on IRS. How to amend my 2011 taxes gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. How to amend my 2011 taxes Mail. How to amend my 2011 taxes   You can send your order for forms, instructions, and publications to the address below. How to amend my 2011 taxes You should receive a response within 10 business days after your request is received. How to amend my 2011 taxes Internal Revenue Service 1201 N. How to amend my 2011 taxes Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. How to amend my 2011 taxes The Taxpayer Advocate Service (TAS) is your voice at the IRS. How to amend my 2011 taxes Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. How to amend my 2011 taxes   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. How to amend my 2011 taxes We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. How to amend my 2011 taxes You face (or your business is facing) an immediate threat of adverse action. How to amend my 2011 taxes You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. How to amend my 2011 taxes   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. How to amend my 2011 taxes Here's why we can help: TAS is an independent organization within the IRS. How to amend my 2011 taxes Our advocates know how to work with the IRS. How to amend my 2011 taxes Our services are free and tailored to meet your needs. How to amend my 2011 taxes We have offices in every state, the District of Columbia, and Puerto Rico. How to amend my 2011 taxes   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. How to amend my 2011 taxes   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. How to amend my 2011 taxes If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. How to amend my 2011 taxes Low Income Taxpayer Clinics Low Income