Are my capital losses automatically used to lower my taxes in turbotax? Doesn't look like it is being applied. Thanks, R

[Carl]

Depends on the details, such as what those capital losses are from, and what other taxable income you have to use those losses against, if your income is to high, etc.

Depending on the details, your capital losses may be carried over to next year if your income is to high, or you may be limited to a maximum allowed loss of $3K per year until the loss is all used up.

[Anonymous_ · Accepted solution]

If your capital losses exceed your capital gains, the amount of the excess loss that you can claim to lower your income is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 16 of Schedule D.

Basically, your capital losses are first used to offset your capital gains and then up to $3,000 can be used to offset all of types of your other income. Any excess over the $3,000 is carried forward to the next tax year regardless of your income level.