My son is finishing graduate school in 2018 and was a full time student in 2017.

[nbl17]

He had no W-2 earned income and has capital losses from sales of items on his behalf.

He is not required to file a 1040 for 2017, I get that.

But if he does not file, will he still be able to carry over the losses to next year when he will have a job and have W-2 earnings that can be offset?

Thanks!

[Hal_Al · Accepted solution]

Yes.

He should probably file, but is not required to. He can still carry his losses forward without actually filing. But, he should file for two reasons:

1. The 1099-Bs from the sale could generate an IRS inquiry. It may be easier to file now than explain it later.

2. Although he can most likely carry the entire loss forward, if he has no other income, there are times when that's not exactly so. It's best to at least prepare a tax return to accurately calculate the capital loss carry forward. Actual filing of the return documents the loss further.

[nbl17]

Thank You Hal_Al.  Pretty much what I was thinking, but nice to have another opinion.