1256 Contracts Carryback in New Jersey

Forum|Forum|2 years ago
March 11, 2024
2 replies
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I am amending my 2022 tax returns using TurboTax 2022. I had 1256 contracts gains in 2022, and losses in 2023. So I am using the 1256 contracts carryback to claim a refund from 2022. After I have entered the needed information, TurboTax shows me a refund for federal tax return, and also a refund for NJ tax return. It means that NJ allows 1256 contract losses carryback.

I believe there must be a lot of CPAs/accounting experts who are on board with the creation of TurboTax, federal and state versions. But I just want to make sure this is the case. There is a previous post here which said NJ doesn't allow capital losses carryback or carryover. Does anyone know if New Jersey allows capital loss carryback? Didn't find it mentioned anywhere. (intuit.com)

Can anyone confirm if NJ allows carryback for 1256 contracts losses?

Thank you in advance.

TurboTax Home & Biz Windows

AnswerSeekerAuthor

Could it be that TurboTax is making a mistake in treating the 1256 contract losses carryback in NJ? If yes, whom shall I talk to so it can be fixed?

DaveF1006

Yes, this may be a possible mistake since NJ does not allow carrybacks of capital or contract losses. This needs to be investigated further but i need your help. I need a diagnostic copy of your 2022 return to submit to the investigative team to show the carryback allowed and to correct this within the software.

The information in this file is a sanitized copy meaning there is no personal information, only numbers so that we can troubleshoot in depth, check for calculation issues, and to see how certain items are applied. Here is how to order.

For Turbo Tax online, go to tax tools>tools>share my file with agent. When this is selected, you will receive a token number. Respond back in this thread and tell us what that token number is.

If you use the desktop version, go to the black stripe at the top of the program>online>send tax file to agent. Once you receive the token number, reply back in this thread and let us know what that token number is.

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

AnswerSeekerAuthor

DaveF1006,

Thank you for your reply. Just sent in a sample copy of the tax return with a 1256 losses carryback. The token number is 1215345. You can see once I applied the 1256 contract losses from 'future year', it displays a refund for NJ tax.

After the investigation, would I get a reply from you or TurboTax? How long does this usually take?

BTW, is an Employee Tax Expert working for TurboTax or is a member of the TurboTax customer forum like myself? I am new here, so I know very little about this community.

Thank you!