In early 2017, I filed my 2016 tax return and was supposed to receive a refund back. The IRS notified me of a 1099 from Paypal in 2015 that had been received by them. I did not file in 2015 as I did not have significant income as a student. Thus, in 2017, I filed 2015 late and showed a ~$3200 loss in schedule C. I did not file any other documents besides a 1040 and schedule C along with receipts for COGS. This $3200 loss was sales minus direct costs of good sold, no other deductions.
My understanding is that I am able to carryforward a NOL up to 20 years. I had no schedule C income in previous years to carryback this loss at the time. In 2016 and 2017 returns I made no mention of this $3200 NOL.
In 2018, I had schedule C income of roughly $7000 along with W2 income of $55000. I am trying to deduct this $3200 loss from 2015 in my 2018 tax return since this is the first year I have schedule C income to offset. Problems that I am unable to find answer on are as followed:
1. Am I eligible to take this NOL carryforward? There is mention that I was supposed to waive some right of carryback within 6 months or lose this NOL.
2. Do I have to fill out a form 1045 if I take this carryforward? It appears that in publication 536, I only have to include this number as a negative amount in "other income" in the 1040 with a statement of explanation and computation.
3. Do I have to amend 2016 and 2017 tax returns to somehow show this NOL is still on record with me?
As someone with a bachelor's of accounting, it is disappointing I have been unable to solve this dilemma. After multiple calls to the above entities, no one has had a clear answer either. The IRS actually had the worst answer, lady gave me an explanation on capital gains, which is totally unrelated.
My understanding is that I am able to carryforward a NOL up to 20 years. I had no schedule C income in previous years to carryback this loss at the time. In 2016 and 2017 returns I made no mention of this $3200 NOL.
In 2018, I had schedule C income of roughly $7000 along with W2 income of $55000. I am trying to deduct this $3200 loss from 2015 in my 2018 tax return since this is the first year I have schedule C income to offset. Problems that I am unable to find answer on are as followed:
1. Am I eligible to take this NOL carryforward? There is mention that I was supposed to waive some right of carryback within 6 months or lose this NOL.
2. Do I have to fill out a form 1045 if I take this carryforward? It appears that in publication 536, I only have to include this number as a negative amount in "other income" in the 1040 with a statement of explanation and computation.
3. Do I have to amend 2016 and 2017 tax returns to somehow show this NOL is still on record with me?
As someone with a bachelor's of accounting, it is disappointing I have been unable to solve this dilemma. After multiple calls to the above entities, no one has had a clear answer either. The IRS actually had the worst answer, lady gave me an explanation on capital gains, which is totally unrelated.
