Question

I imported my investments for the year over to turbotax (i lost 3k+ on the year) How come it didnt change my federal taxes due and deduct the losses? I am self employed.

Forum|Forum|5 years ago
April 7, 2021
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TurboTax Self Employed Online

Employee

If you have investment sale losses, after you subtract the losses from your gains you can only deduct up to 3,000 per year. The rest you will have to carryover until it is used up.

Then if you reduce your income a lot or to zero there is no more refund to get back but you still may owe for other things like self employment tax or the 10% early withdrawal penalty from 401k or IRA accounts.

M

Mack21Author

So if i already had a good amount of deductions for this year, that could cause it to not deduct my losses on my investments? So then, it would just carry over to the next year correct? @VolvoGirl

VolvoGirl

Employee

Possibly. But 3,000 is the max Loss you can take each year after any gains. But If you have a negative AGI or negative taxable income it will show up on 1040 BUT it won't reduce the carryover to the next year.

Here is pub 550… http://www.irs.gov/pub/irs-pdf/p550.pdf