@Tinka81
Q. Does the 3000 still have to INCLUDED on the1040, even though it makes no difference?
A. Yes. The $3000 must show on line 7 of form 1040, even if it is not used in calculating your taxable income.
Q. So does it affect the full balance of the carryover? or does the carryover remains the same because there was no taxable income to reduce it?
A. The carry over remains the same because none of the capital loss was needed (used) to reduce taxable income. For example, if you had a $20,000 capital loss from 2019, $20,000 would carry over to 2021, even though $3000 was shown on line 7 of your 2020 form 1040. The carry over calculations are not shown anywhere on your 2020 IRS forms. It only shows on the TurboTax worksheet.
@sts_66 The standard deduction IS first used to offset income. Only if the standard deduction doesn't get your taxable income to zero; then some of the $3000 capital loss is used.
