Losses Offsetting Normal Income Taxes

[user17524355777]

If I have a loss on my stocks/options for the year, how can I use this when I comes to my normal federal taxes on my W2 income?

[evelynm]

You need to plan carefully to benefit from offsetting ordinary income like your wages against capital losses.    

Losses on your investments are first used to offset capital gains of the same type.  Short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. Net losses of either type can then be deducted against the other kind of gain.

• You can deduct up to $3,000 of that loss against other kinds of income, including your salary and interest income.
• Any excess net capital loss can be carried over to subsequent years to be deducted against capital gains and against up to $3,000 of other kinds of income.
  
  Here is a great resource with further details:  Tax Tip for capital gains/losses 
  
  I recommend you use our amazing Turbo Tax Tax calculator to assist with the tax calculations:   Tax Calculator 
  
  Additionally, please stay up to date on the One Big Beautiful Bill:  Big Beautiful Bill Tax Reform Calculator 
  
  
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