Mistake on schedule D filed by HR block carryover loss

[gluckles]

I filed using turbo tax for my 2014 return, where I reported a short term loss of 4107 and long term loss of 8432 on schedule D. I deducted the 3k for 2014, and my carry over worksheet shows a 1107 short term loss should be carried forward, and 8432 long term loss to be carried forward to 2015. I Used HR block for 2015, where an incorrect amount was placed on the schedule D showing 4107 short term carryover loss from 2014 when it appears it should have been 1107. I took the 3k deduction in 2015. Now my carryover loss worksheet shows 3000 more than it should, and boxes 6 and 7 on the previous schedule D for 2015 has incorrect figures. How would one correct this situation

[MichaelL1]

You can fix the Capital Loss carryover in TurboTax by going to:

To enter or adjust the Capital Loss carryover go to:

Click on Federal Taxes

Click on Wages and Income

Click on I'll choose what I work on

Scroll down to Investments

On Capital Loss carryover click the start or update button

[NoferTrunnions]

I noticed that on last years return (2021)

I went back about 5 years of HR Block returns and discovered while taking the $3k deduction, they were not reducing the capital loss carryover.

This error is so fundamental it makes one wonder what else they've gotten wrong.

I hate TurboTax but it looks like I'll have to go back to them.  (TT was terrible handling short sales and completely failed to deal with wash sales.  But that was years ago - but then, that was why I left TT.)

[VolvoGirl]

That might be right.  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.

[Mike9241]

wash sales should not be a problem any more because brokers must adjust and report them.  you only run into a problem if you have a wash sale because you have multiple taxable accounts or an IRA (sell at a loss in a taxable account and repurchase during the wash sale period in an IRA creates a wash sale. the reverse is not true).  no software and no broker I know of tracks possible wash sales when the loss occurs in one a/c and the repurchase that creates the wash sale occurs in a different account.

as to short sales. I will not defend how my broker reports them to the IRS but it uses the same date for dates acquired and sold. it uses the acquired or expiration date as the sale date which at least means I'm reporting in the correct year.  

there may still be a problem if you import. Turbotax does not like either the proceeds box or cost box to be blank which can occur if the short sale is an option that expires so the cost is zero but nothing gets imported

the same is true for purchase of an option that expires worthless sales price is left blank.

there may be a way around this. From what I can tell Turbotax doesn't import types A and D with no wash sale transactions as a single total in the area that it has for such reporting on the 1099-B worksheet.  Fortunately, almost all my trades are of these types with no wash sale so I do not import. calculate the totals for the pure A and D types and enter just the totals. the 10-20 other trades I enter manually. you can not do a partial import.   

[Critter-3]

I agree with @VolvoGirl   ... before you declare the HRB program is faulty please review the carryover worksheet carefully.  Just because a $3000 loss is entered on the 1040 it may not reduce your loss carryforward in some cases which these tax programs handle very well automatically.