Q. Is it required to report capital loss on line 7?
A. Yes.
As explained by others, your capital loss carryover will not be lost. TurboTax (TT) will prepare a capital loss carry forward work sheet. If you use TT next year, the capital loss will automatically carry over to the 2023 tax return.
Also, as explained by others, the capital loss is applied to income on line 8 of form 1040.
Basically, you are allowed to use your standard or itemized deductions to reduce your taxable income before having to use your capital loss.
If your standard (or itemized) deduction is greater than AGI, without capital loss, then all capital loss is carried forward.
More explanation at:
https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/on-2018-i-had-0-incom...
