- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
In the software, you do not manually apply the $3,000 allowance because the calculation works automatically using the IRS netting rules.
When you enter your $3,368.38 capital gain in the "Investment Sales" section (Federal > Wages & Income > Investments and Savings (Forms 1099-B, 1099-INT, 1099-DIV, and 1099-DA, Crypto)) and your prior-year loss carryover in the "Capital Loss Carryover" section (If you transferred last year's return it should have carried over, or go to the capital loss carryover screen under Wages & Income), TurboTax first uses your carryover to cancel out your current gain entirely. After that gain is reduced to zero, the software will automatically take up to $3,000 of your remaining loss carryover to offset your other ordinary income.
You can verify this by navigating to Tax Tools on the left of your screen, choose Tools, then View Tax Summary. On the left of the screen, select Preview my 1040, and looking at Schedule D.