I am currently amending my 2010 tax return by claiming business
expenses, thus lowering my 2010 adjusted gross income.
As a result, I am going to have to correct my (still unfiled) 2011
return. The corrected 2011 return will have to reflect my amended 2010
taxable income, adjusted gross income, and possibly other 2010 data of
which I am not really aware. I have never done this before, I would
appreciate if someone could indicate how much work will be required? I
am not very tax savvy, I am using Turbotax, I am afraid that the
easiest (but time-consuming) way is to start again my 2011 return from
the beginning. On the other hand, maybe I can get away with just
correcting the Tax History Report, the Two Year Comparison, and a
couple of other worksheets.
I appreciate your help.
Why will your 2011 return have to reflect any of those things?
Your 2010 revenues stand alone and won't affect 2011. Your 2010
operating expenses and any depreciation-as-expenses (like Section 179
elections) stand alone and won't affect 2011. Only depreciable/amortizable
assets put in service in 2010 will affect your 2011 return.
In theory 2011 can depend on 2010. Suppose 2010 had a net operating loss,
then with the new deductions the NOL will be even larger, meaning a larger
deduction in 2011. Or suppose the rule of charitable contributions where
you can only deduct 20% to 50% of your AGI and carry the rest forward for 5
years, and by lowering your AGI your maximum charitable contribution is
lowered, thus increasing the carryover into 2011.