Perhaps nothing is wrong. The $3,000 loss that you can take against ordinary income reducing your ordinary income by that amount; however, the tax effect will probably be less than $3,000. Essentially what is happening is that the $3,000 loss against ordinary income just reduces the amount of ordinary income subject to tax, it does not reduce your tax by $3,000.
The $3,000 capital loss should be on line 7 of Form 1040. If you are using TurboTax CD/download, you can switch to Forms mode (select Forms in the upper right of your screen) and in the left margin you can review your Form 1040 to make sure your capital loss is on Line 7. If you are using TurboTax online, follow these steps to review your Form 1040:
- Open or continue your return.
- Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
- With the Tax Tools menu open;
- Select Tools.
- Next, select View Tax Summary in the pop-up.
- Then Preview my 1040 in the left menu.
- To get back to the step-by-step instructions, just click Back in the left margin.
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