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Level 2
July 27, 2021
Question

Can I file an amended return for a client who had unemployment compensation, filed before updated forms were available BUT it was not taxable because of NOL?

  • July 27, 2021
  • 1 reply
  • 6 views
To eliminate tax on unemployment NOL carryforwards were used, but now that unemployment is exempt, the NOLs carried forward to 2021 need to be increased.
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1 reply

sjrcpa
Level 15
July 27, 2021

If nothing changes except the amount of the NOL carryforward there is no need to amend. Document the change in your file.

The more I know the more I don’t know.
BobKamman
Level 15
July 27, 2021

I think I agree with that, but documenting it in MY file isn't what's most important.  At my age, I don't buy green bananas.  Make sure it's documented in YOUR CLIENT's file.