@VolvoGirl wrote:
Even if you don't report it on your return you have to reduce it by the 3,000 (1,500 MFS) when you carry it over to next year.
The reduction is not necessarily $3,000 each year. As stated in the sentence that you quoted from Pub. 550, you have to reduce it by the amount that would have been used if you had claimed it. That could be more or less than $3,000. The only way to know how much to subtract from the carryover is to recalculate your tax return for each year that you skipped, claiming whatever carryover would have been allowed.
