If your capital losses are not being subtracted from your capital gains, it may be because Pennsylvania tax law does not provide for the same capital loss deductions as federal tax law. It does not allow capital losses to offset gains from different types of investments. It also does not allow loss carryovers from prior years. Depending on what is on your tax return, this may be why you are seeing this.
Pennsylvania law provides that capital losses are only recognized for profit-seeking transactions in the same year, and they can't be used to offset other types of income such as dividends. Capital gains from mutual funds distributions are reported as dividends on the Pennsylvania tax return.
Spouses cannot use each other's losses to offset gains, even on a joint return.
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