Capitol Carryover Loss - Retired now and income not changing, do I need to keep using?

[gmhigbee]

We've officially retired and will have the same income annually via pensions and SS.  It appears that the loss carryover of $3,000 annually does not impact the outcome of zero taxes owed as we simply qualify for the standard deduction.  I understand once I stop claiming the loss that I cannot claim it in future.

So my question is this, am I safe to assume that unless our income is more than the standard deduction ($29,200) that there is no reason to continue to claim the loss?  the only real change I could foresee in the future might be when a parent passes and we have income that year, otherwise income should be the same.

If I don't use the loss then I'm able to file for free saving me $89 a year

[fanfare]

capital loss calculation  is the same itemized or not itemized.

you must file Schedule D each year to maintain your record of loss with the IRS.

@gmhigbee 

[gmhigbee]

Thank you, I already realized that.  What I was asking is advice if I should continue to claim knowing the current odds are 98% sure my income level will not change over next 25 years?

[VictoriaD75]

Yes. You should continue to carryover and claim your capital loss. The standard deduction is separate from your capital loss and has no bearing. Your capital loss reduces your income prior to applying the standard deduction. If you do not use your $3,000 in capital loss carryovers, your taxable income will be $3,000 higher for the year. 

While you may already have $0 in taxable income, there may be instances in the future where the capital loss is valuable. For instance, capital loss carryovers can be used to offset future capital gains and are not limited to the $3,000. If you have gains in the future, they can be offset by any remaining loss. Unfortunately, the only way to have the losses available for use are to use the available $3,000 against ordinary income and track the carryover losses on your tax return each year.

@gmhigbee