NOL Carryforwaqred question

[erchess]

I have been doing this taxpayer for at least five or six years so I can look up more info than I remember if it bears on the answer to my question. A taxpayer had an NOL in 2010 and I don't remember whether there was any carryback or we elected carryforward only. Some was used in 2011 and I don't recall deciding to use only so much so I think I used as much as the software would let me being under the impression that this was required. Now in 2012 the software is letting me elect to carry none forward. Regardless of how much or how little I carry forward the balance on the return is unchanged because there is no regular tax, there is SE Tax and there are the EIC and CTC.

1. Is my software right that I can elect zero carryforward in 2012 and if so are there any pitfalls to be aware of in the future? Carrying some or all forward does not cost anything it just doesn't help and who knows it might help in another year or it might not. This is a taxpayer whose income swings widely.

2, If it works out that carrying forward less or none in 2011 would have been desirable may we amend that return or must/should we let sleeping dogs lie?

[David1980]

Seems more likely the software is indicating you have $0 2012 NOL to carry forward, rather than $0 NOL to carry forward. You can have multiple years of NOLs being carried forward. Try the worksheet on page 17 of Pub 536 and see if that calculates a carry forward of the prior year NOL. http://www.irs.gov/pub/irs-pdf/p536.pdf

[erchess]

The software is clear

I have a nol carryforward from 2010 and according to the software I may apply none some or all of what is left to 2012 but the bottom line of the return is not affected by this decision.

[David1980]

Ahh, I think the question then is how much should be showing on line 21 each year?

All of the carryforward amount remaining. It very well may be the case that some years none of it does anything/gets used. That will be taken care of in the worksheet to calculate the carry forward to the next year. So assuming the total carry forward amount was showing on the 2011 return there's no need to amend, just do the worksheet for that year to determine how much of it carries to 2012 and so on.