Capital Loss carryover for first time user of turbotax.

Forum|Forum|3 years ago
October 3, 2022
3 replies
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So I have completed my taxes and elected to mail in file. How do I correct my return to account for a capital loss carryover from prior years not using turbotax.

I suppose I can just transfer the information generated from turbotax to empty forms , fill in the necessary numbers and file these pages. That's my only option, is it?

What about the coming years? Do I keep doing this? Thanks.

Best answer by VolvoGirl

Click on Add a State to let you back into your return.

Enter a Capital Loss Carryover under

Federal Taxes or Personal (Home & Business)

Wages and Income

Then scroll down to Investment Income

Capital Loss Carryovers - Click the Start or Update button

You enter the full amount that carried over, not just the 3,000

The 3,000 is just the max loss you can claim each year AFTER offsetting any gains you have. So you might use more of it up in one year.

Then Turbo Tax will carryover any left to next year.

VolvoGirlAnswer

Employee

Click on Add a State to let you back into your return.

Enter a Capital Loss Carryover under

Federal Taxes or Personal (Home & Business)

Wages and Income

Then scroll down to Investment Income

Capital Loss Carryovers - Click the Start or Update button

You enter the full amount that carried over, not just the 3,000

The 3,000 is just the max loss you can claim each year AFTER offsetting any gains you have. So you might use more of it up in one year.

Then Turbo Tax will carryover any left to next year.

Go-On-Tax-mehAuthor

"The 3,000 is just the max loss you can claim each year AFTER offsetting any gains you have. So you might use more of it up in one year. "

Thank you! I am a little lost here regarding the $3,000 max loss limit because turbotax used all of my Long Term Carryover, an amount way above the $3000 limit. I am worried about this. It's seems to be treating the carryover amount as a current year loss to offset the gains. I hope this is not a glitch because my tax got a big reduction!

Critter-3

This is not a glitch, on the schedule d all of your capital gains and losses are netted and if you have more loss than gain you are restricted to a Max of $3,000 of capital loss against other income on the 1040. So if you have capital gains that can use up the loss that is what happens correctly.

Critter-3

First you need to enter the loss carryover from the prior year return when asked for in the interview. Then if you continue to use the TT program next year AND you transfer the prior year info then that figure will carryforward automatically. Pay attention to all the screens in the interview and try not to skip around so you don't miss any sections.

Go-On-Tax-mehAuthor

I already finalized my preparation on turbotax. I was rejected for efile so I am mailing it in. I have not mailed anything in as of today. How can I go back and edit the original document? Can I make an amend and send the amend with the original document?

VolvoGirl

Employee

No if it was rejected it was never filed. You do not amend. You can go back in and add or change anything you want. I said how above. Click on Add a State to let you back into your return.

Why did it reject? The most common reason is the wrong 2020 AGI. ENTER 0 FOR AGI. The IRS took a long time last year to process 2020 returns so the AGI didn't get entered in time. Especially if you mailed it. That works for most people. See,
https://ttlc.intuit.com/community/rejections/help/what-if-i-entered-the-correct-agi-and-i-m-still-getting-an-e-file-reject/00/27031

How to correct the AGI in the Online version
https://ttlc.intuit.com/community/agi/help/where-do-i-correct-my-agi-in-turbotax-online/00/26311

If you can’t get it to efile you will have to print and mail it.
https://ttlc.intuit.com/community/printing/help/how-do-i-print-and-mail-my-return-in-turbotax-online/00/26258

Be sure to attach copies of your W2s and any 1099s that have withholding on them. You have to mail federal and state in separate envelopes because they go to different places. Get a tracking number from the post office when you mail them for proof of filing.

Mike9241

the capital loss carryover to 2021 must be reduced by any part of the carryover that was used to offset other taxable income in prior years. up to $3,000 can be used each year after the loss year.