Do you need to file 2015 taxes to declare a capital loss carryover in 2015? Even if you have a 2015 1099 form showing your capital loss?

[tykaufman93]

I did not file taxes in 2015 as I was a student and did not have income.  I was investing in stocks and lost $1,500.  Can I declare that a capital loss carryover if I have the 2015 1099 form but did not file my taxes? Or do i just have to bite the bullet and move forward without it?

[KrisD · Accepted solution]

No,

but this is a somewhat complicated question.

I am including an answer previously posted.

According to what I read, the taxpayer needs to use the loss carry-over first, before your exemption and deduction.

If you had NO income in 2015, you can use the loss in 2016, but you would need to earn more than your exemption plus deductions for it to matter.

Additionally, if you earned more than $1,500, but less than your exemption plus deduction, it will be lost in 2016 and you will not be able to carry anything over.

https://ttlc.intuit.com/replies/4203301

[tykaufman93]

So this year I started working after graduation and earned $22,000.  I also earned $5,000 with stocks.  This is why I would like to use my capital loss carryover from last year.  But I did not file for 2015 so I was wondering if I have to forfeit the carryover from 2015 from having not filed or if I can still use it because I have the 2015 1099 form still.

[KrisD]

You can use it. You can still file for 2015 if you want, or you can just claim the 1500 carry-over in 2016. if you don't file a 2015 return, make sure you have everything you need to show the loss and the zero income for 2015, just in case, but filing a 2015 return is not necessary.

[tykaufman93]

Hey thanks man, I really appreciate your help.  I can't believe somebody responded so quickly to my questions.

If I declare the carryover do I declare the same amount for Federal as well as state? Or just allocate it to one or the other?

[KrisD]

Well you claim the loss on the federal return. It lowers your income "Above the line" meaning the Adjusted Gross Income is lower, and that is what flows to the state, so you shouldn't need to add it to the state again. Good luck with your trading, seems 2016 was a good year.