why is tubotax not offsetting my capital losses from capital gains for NJ state return?

Forum|Forum|1 year ago
March 27, 2025
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MAK70

New Jersey does not allow you to report a capital loss. You can check your Schedule NJ_DOP.

idris75gAuthor

Thank you, Mary. I understand NJ does not allow a net capital loss. However, if I have some capital losses (line 1 in NJ-DOP), I should still be able to offset it from my capital gains distribution (line 2 in NJ-DOP), provided Net Gains (line 4) is 0 or higher.

rjs

Employee

I did a test of the situation you are describing and TurboTax did offset the capital losses against the capital gain distributions. I don't know why it's not working for you.

On your Schedule NJ-DOP, what are the exact amounts on line 1, in column f? What are the exact amounts on lines 2, 3, and 4?

If you are using the desktop TurboTax software:

Make sure your software is up-to-date. There was an update to the federal software yesterday. The most recent update to the New Jersey software was on March 20.
If you are looking at Schedule NJ-DOP in forms mode, make sure you are looking at line 1 of the actual form, not the Smart Worksheet at the top.
Make sure you do not have any overrides in your federal or state tax return. If an amount is overridden the numbers will be red in forms mode.