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Can report all my losses since 2020 from crypto currency investments on my 2022 tax return if I've never reported them?

 
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2 Replies

Can report all my losses since 2020 from crypto currency investments on my 2022 tax return if I've never reported them?

QuillerTax7,

 

No, you cannot lump your losses across multiple years onto a single tax year.

 

However, you can, and really should, amend your two prior year income taxes in order to apply those losses against those returns.  While at most $3,000 of net capital loss can be used each such year, any additional loss is carried over to the next year and added to that next year's capital gains to reduce your income.  This continues ad infinitum until the carryover losses are all used up.  For right now, go ahead and finish your 2022 tax calculation and file for an extension rather than filing your tax return by Tuesday.  You will, of course, pay anything that TurboTax says you owe for 2022 with the extension.  This gives you time to amend your two prior year taxes in chronological order to determine if there is going to be any year-to-year capital loss carryover.  

MaryK4
Employee Tax Expert

Can report all my losses since 2020 from crypto currency investments on my 2022 tax return if I've never reported them?

You must report any realized losses in the year they occur- so you may need to go back amend file/amend past year returns.  You can only report losses from 2022 on the 2022 tax return- but if you have losses from prior years, they will carryover. 

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