how does TurboTax compute capital losses. I believe it has made an error in mine. Has anyone else had incorrect computations or able to tell me how to find the details

Forum|Forum|1 year ago
February 26, 2025
4 replies
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I added gains and losses of household's five accounts together and came up with a figure for net capital loss. There were no wash sale reductions. TurboTax supposedly added up the same numbers and got a different number, much less. I cannot figure out how TurboTax got its number.

Best answer by fanfare

"I added gains and losses of household's five accounts together and came up with a figure for net capital loss. "

if your results don't match TurboTax results

re check your arithmetic
re check your entry of the subtotals.
revisit your conslidated 1099-B to confirm the correct interpretation of the report.
recall that Long Term and Short Term must be tallied separately.

@JeanMS

fanfareAnswer

Employee

"I added gains and losses of household's five accounts together and came up with a figure for net capital loss. "

if your results don't match TurboTax results

re check your arithmetic
re check your entry of the subtotals.
revisit your conslidated 1099-B to confirm the correct interpretation of the report.
recall that Long Term and Short Term must be tallied separately.

@JeanMS

JeanMSAuthor

I went back to the 1099-B's. In re-examining them, I discovered some of the capital loss figures were not being reported to the IRS. When I added those figures to the TurboTax figure, the resultant number matched what I had calculated for my total capital loss. Now I have to figure out how to get those into TurboTax.

rjs

Employee

You don't enter gains and losses into TurboTax. You enter the proceeds and basis for each sale or group of sales, and TurboTax calculates the gain or loss. If you enter the proceeds and basis accurately in TurboTax for all of the sales, the calculated gain or loss will be accurate.

The brokerage does not report gains or losses to the IRS. It reports the proceeds, and may or may not report the basis for any particular sale.

DavidD66

Did you include Capital Gain Distributions from mutual funds? Those are reported on Form 1099-DIV. I can't explain why you're getting a different number with such limited information. If you would like to review the calculations on Forms 8949 and Schedule D, you can print or view your return without filing. To do so,

Go to Tax Tools, on the gray ribbon on your left
Select Print Center
Click on the box with "Print, save or preview this year's return"
You will be prompted to pay for your return. You will still be able to make changes to your return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

rjs

Employee

If you are using the desktop TurboTax software you can look at Form 8949 and Schedule D in forms mode. There may be more than one Form 8949.

viclyncam

Yes, turbo tax did something funky to mine too (2023). Wisc adjusted my return (flagged), with this reason: "Line 32 - We changed your household income to include disqualified capital loss. To calculate the disqualified loss you must look at the individual capital asset sales instead of the net losses." and "Line 32 - Your homestead credit has been computed using a household income of X, taxes of X, rent paid for occupancy of X * 20% = X and rent paid for occupancy of X * 25% of X" (where X is my personal information).

Why did turbo tax allow this to occur? Once I upload previous years (multiple years), everything else should just be answering questions, provided I submit all my 1099's etc, shouldn't this be fool-proof.