Is my CA state capital loss caryover from 2022 is the same as Capital Loss Carry over on my Federal Returm

Forum|Forum|2 years ago
February 9, 2024
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Why does Turbotax want me to enter a Capital Loss Carryover from 2022 in my state return, as opposed to automatically entering the full 2022 Capital Loss caryover from my federal return that it kindly informs me about?

I have been residing in CA permanently for 20 years, including 2023.

Best answer by Mansss

The California capital loss carryover from 2022 will be reflect on your 2022 California Capital Loss Carryover Worksheet. The amount on line 8 is your capital loss carryover amount for 2023.

Therefore, you will need access to your 2022 California state return to find this worksheet and determine the correct amount to enter into TurboTax for your 2023 tax return.

If you are using TurboTax online, once you locate the amount, you can log back into TurboTax and select Your State Returns from the panel on the left.

Select Edit to the right of your state.
Select edit to the right of Income and adjustments
Proceed through the screens until you see the screen titled "Here's the income that California handles differently."
Scroll down to the section titled Investments and select start/revisit to the right of Capital Loss Carryover from Last Year.
You will be prompted to enter your state specific capital loss carryover amounts from 2022.

If you are using the desktop version of TurboTax, you can enter the California capital loss carryover amount in the state interview section of the program.

Select the State Taxes tab and then select edit to the right of Income and adjustments.
On the page titled "Here's the income that California handles differently, select edit to the right of Capital Loss Carryover from last year.
You will be prompted to enter your state specific capital loss carryover amounts from 2022.

@Mansss

Hi. I'm just following up to find out why it is that I would use the amount on line 8 of my 2022 California Capital Gain or Loss Adjustment as my capital loss carry over amount rather than using an amount that is $3,000 less than that. It is my understanding that we can only claim $3,000 of the excess loss each year. So if the amount on line 8 of my 2022 California Capital Gain or Loss Adjustment is $780,530 why wouldn't the amount of my capital loss carry over for 2023 be $777,530?

Thank you

MonikaK1

TurboTax is asking for your California carryover amount in case it differs from the Federal carryover amount.

Though, in general, for taxable years beginning on or after January 1, 2015, California law conforms to the Internal Revenue Code (IRC), there are a few continuing differences between California and federal law. When California conforms to federal tax law changes, they do not always adopt all of the changes made at the federal level. For more information, go to ftb.ca.gov and search for conformity.

if you used TurboTax for 2022, look for your "California Capital Loss Carryover Worksheet". Line 8 shows the value to carry forward to 2023, You should be able to manually fill this in.

You also need to have California added to your return in progress in order for the carryover to populate.

See here for another discussion of this issue.

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MelsTTCAuthor

Thank you greatly for taking the time and informing me about Federal and CA Sate taxing differences of capital loses.

you said

"if you used TurboTax for 2022, look for your "California Capital Loss Carryover Worksheet". Line 8 shows the value to carry forward to 2023, You should be able to manually fill this in."

Yes I had used Turbotax in 2022, and the amount on Line 8 is $3000 more than my 2023 Federal Capital Loss carryover amt, since I used up $3000 of my 2022 capital loss in my 2022 Federal taxes. So would State of CA allow me use unreduced capital loss amount from 2022?

I hope you can help me one more time.

MonikaK1

The Federal and California carryovers may not be the same and are tracked separately. The amount on Line 8 of the California Capital Loss Carryover Worksheet is what you would input if the amount didn't carry over automatically from last year.

See this thread for another discussion of the issue.

California Capital Loss Carryover Worksheet For Full-Year Residents - Instructions for 2022:

Loss from Schedule D (540NR), line 11, stated as a positive number.
Amount from Form 540NR, line 17
Amount from Form 540NR, line 18.
Subtract line 3 from line 2. If less than zero, enter as a negative amount.
Combine line 1 and line 4. If less than zero, enter -0-.
Enter loss from Schedule D (540NR), line 8 as a positive number.
Enter the smaller of line 1 or line 5.
Subtract line 7 from line 6. This is your capital loss carryover to 2023.

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shaf1

my capital loss carry over for state is the same as federal?

JulieS

It depends on whether you have any capital loss carryover from the sale of items where California doesn't treat the transaction the same as it is treated on your federal return.

To be certain, use JotikaT2's instructions above to find your 2023 California capital loss carryover.

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