Question

Can short term or long term losses be used to offset dividend income?

Forum|Forum|4 years ago
April 8, 2022
2 replies
0 views

pretty straightforward. I am going to take some larger short term losses this year. i also have dividend income, but it will be much smaller. so say if i have 30K of short term losses, but 7K of dividend income, can i apply those short term losses to flatted out the dividend income?

TurboTax Premier Online

B

Bsch4477

Employee

No. Dividends are not offset by capital gains or losses.

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paul-j-heckmanAuthor

from what I'm reading up on, that might not be entirely correct:

"if you're left with a net capital loss for the year after offsetting all capital gains, you can use up to $3,000 of that loss to offset your regular taxable income, including income you receive from dividends. "

B

Bsch4477

Employee

Yes, any remaining capital loss after reconciled with capital gains is subtracted from income up to $3,000. It doesn’t matter whether that income is from wages, interest or dividends. My previous answer was to correct any impression that capital loss was subtracted from dividends especially.