USA Unclaimed NOL Carryforward?

[EllenTK]

Please tell me if my conclusions are correct.

I filed my 2011 return in April 2012 and incorrectly used the standard deduction instead of itemizing, which I now see would have resulted in an NOL as my medical expenses and medical insurance premiums were higher than I realized.

From what I've read, I have until 4/15 to claim an NOL carryforward and I would do this using a 1040X supported by Schedule A from Form 1045, plus a statement saying I elect not to carry it backwards? Is this right?

It's also my understanding that I have 20 years to use it? But, can I use it in the tax year 2014? Do I need to file an extension for 2014 to give the IRS time to receive my 2011 1040X declaring the NOL carryforward? Or is attaching a copy of the 2011 1040x and 1045 Schedule A enough? And should I date the 2011 1040X earlier than the 2014 1040?

Thanks for any and all help.

 

[Samir]

First, you will need to amend your 2011 year return in order to have an NOL.

Second, you will need to elect to carry the NOL forward as normally NOLs are carried back 3(?) years before being carried forward.

 

[Kerry Claxton]

No you are not correct, Itemized deductions cannot create an NOL as only business deductions can create an NOL. Also even if you did have an NOL the election to forgo the carryback must be filed on a timely filed original return including extensions, so you would have to have filed by October 15, 2012 to forego the carryback period. Might want to read this publication:
http://www.irs.gov/publications/p536/ar02.html#en_US_2014_publink1000177331

Kerry Claxton, CPA