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Capital loss carry over credit

Why is my capital loss carry over credit used before my dependent credit to reduce my tax in turbo tax? I end up not using any of my dependent credit.

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3 Replies

Capital loss carry over credit

Your capital loss part of calculation of your AGI which in turn determines your tax liability. Credits are then applied toward that liability. 

AnnetteB6
Employee Tax Expert

Capital loss carry over credit

The capital loss carryover is not a credit that reduces your income tax.  It is a loss or negative income amount that reduces your income.  If your income was reduced low enough so that you did not have any taxable income, and therefore no income tax, then your child tax credit could have been affected.  

 

These items are subtracted and calculated in a certain order based on the tax return itself and which line the items are reported.  There are no changes you can make to change the outcome.  

 

@jpetersenbus1 

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Capital loss carry over credit

it's not a credit but a deduction that reduces taxable income

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