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March 23, 2025
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Turbotax asks me to check Schedule E., Passive Operating Loss, saying that the sum of losses should not be greater than the total loss. Turbotax puts there right amount

  • March 23, 2025
  • 1 reply
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Turbotax fills the box with the right amount, I manually checked by substracting all expenses and amortization from income. But it still does come up as an error during review.
    Best answer by PatriciaV

    When you run Smart Check, TurboTax will present a section of Schedule E Worksheet Carryovers to 2024 Smart Worksheet, Disallowed Passive Losses by Year and Type. For some properties, the carryovers are out of sequence. For instance, 2022 is on the 2021 line. Or the 2023 number is on the 2022 line. 

     

    Note also the amount on the first line for "Before 2018." This amount should be zero (unless you had carryovers from before 2018).

     

    To fix this, enter the correct number starting with the most recent year. Then move up the schedule until all years are correct. This may be easier if you can access your 2023 return and print the Schedule E worksheet.

     

     

     

    If you're unable to scroll down in the popup window to see these lines, you will need to transfer your return to TurboTax for Desktop so you can use Forms Mode to fix this carryover. See How do I switch from TurboTax Online to the TurboTax software?

    1 reply

    PatriciaV
    PatriciaVAnswer
    Employee
    March 24, 2025

    When you run Smart Check, TurboTax will present a section of Schedule E Worksheet Carryovers to 2024 Smart Worksheet, Disallowed Passive Losses by Year and Type. For some properties, the carryovers are out of sequence. For instance, 2022 is on the 2021 line. Or the 2023 number is on the 2022 line. 

     

    Note also the amount on the first line for "Before 2018." This amount should be zero (unless you had carryovers from before 2018).

     

    To fix this, enter the correct number starting with the most recent year. Then move up the schedule until all years are correct. This may be easier if you can access your 2023 return and print the Schedule E worksheet.

     

     

     

    If you're unable to scroll down in the popup window to see these lines, you will need to transfer your return to TurboTax for Desktop so you can use Forms Mode to fix this carryover. See How do I switch from TurboTax Online to the TurboTax software?

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    March 24, 2025

    Thank you Patricia, I seem to have the problem you mention, as my 2024 Operating loss is filled in by TurboTax correctly, but the 2023 Operating  loss field is filled in with the same amount, and the 2022 field is filled in with the real  loss I had in 2023. However, all these fields are grayed out, and Turbotax does not let me change them. And yes, I also have this "Before 2018" Operating loss filled in with some random value, even though Turbotax should know that the first year I reported gain/loss for this property was 2020. And this field is also grayed out and cannot change it to zero. So what do I do?

    Can we expect Turbotax to fix this error in the coming days, by any chance?

    PatriciaV
    Employee
    March 25, 2025

    You may not be able to resolve this issue using TurboTax Online. Since this relates to the transfer of your prior year return to the current year, the issue may not be addressed in an update before the filing deadline.

     

    Your options are 1) ignore the Smart Check message and file your return by mail or 2) install TurboTax for Desktop so you have direct access to the form.

     

    If you choose the second option, see these instructions: How do I switch from TurboTax Online to the TurboTax software? Also, contact TurboTax Support and request a free download due to the unresolved form error.
     

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