Capital Loss Carryover on Schedule D does not decrease over years on TurboTax?

Forum|Forum|5 years ago
May 11, 2021
1 reply
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I just got curious (or worried) while reviewing 1040s over the last three years.

In 2018, I had a $ 20,000 capital loss. It was reported on Schedule D (at that time I used TT Premier as far as I remember.) and had $ -3,000 reported in Line 13 on 1040.

In 2019, I never had a single transaction from my stock account, so I used TT Deluxe. I had a $ 20,000 loss carried over on Schedule D Line 6. I had $ -3,000 reported in Line 13 on 1040 and it reduced my AGI.

In 2020, I never had a single transaction from my stock account either, so I used TT Deluxe again. I STILL have a $ 20,000 loss carried over on Schedule D Line 6. I AGAIN have $ -3,000 reported in Line 13 on 1040 and it reduced my AGI.

My question: I believe the $ 20,000 loss amount should have been reduced by $3,000 each year, but for last 3 years I have had the same amount carried over, not deducted a single dollar.

For example, for 2019 I should have $17,000 carried over from 2018, and in 2020 $14,000 carried over from 2019 and reported on Schedule D.

For some reason, Turbotax does not seem to provide this "carryover worksheet" referred to in Schedule D in order to compute and UPDATE unused carryover amounts in a given year.

Can anyone let me know Turbotax has done it correctly?

TurboTax Deluxe Online

M

Mike9241

did you have any taxable income in those years.

while the instructions call for reporting the $3,000 loss on the 1040. if you have no taxable income for those years before the loss, none of the loss is actually used, so you keep the full carryover.