How do I correct the "capital loss used in 2024"? I only used 3000 and it shows the entire capital loss.

[MindyB]

If you had any capital gain, you are able to use capital loss to offset that. Any loss above the gain you are offsetting is limited to $3,000. If you have no capital gain, but your capital loss is being used erroneously, I would be happy to take a look at your return.

However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

[himanshugupta53]

I keep getting an error while sending file to agent. I'm using a Mac.

I also tried clicking on Help at the top. It opens up a virtual chat agent which never replies with what we need.

[himanshugupta53]

My token number is 1292722

[MindyB]

Thank you, I received the token and was able to view your return.  You did not only use $3,000 in 2024.  You used the full carryover from 2023, as you had enough capital gain to absorb this. Your losses are only limited to $3,000 if the result is a loss.  Since you are able to absorb the full carryover with your gains, you may take the loss from last year that carried forward. Note on your 1040, line 7, the amount is positive.

Here is some more information you may find helpful: What is a capital loss carryover?

[himanshugupta53]

> You used the full carryover from 2023, as you had enough capital gain to absorb this.
This is not possible as IRS doesn't allow this. We can only carry forward max of $3000 to deduct from income. Rest is carried over to next years.

Can you please change the entry and / or allow. me to do it? I'm pretty sure what TurboTax is doing here is not correct.

[ThomasM125]

You can carry forward an unlimited amount of capital losses to offset capital gains in the next year. The $3,000 limit you reference is the net loss in any year that is deductible. For instance, if you had a loss carryforward from 2023 of $10,000 and gains in 2024 of $5000, your net loss in 2024 would be $5,000. In that case, $3,000 would by your capital loss deduction in 2024 and $2,000 would be the loss carryforward to 2025.

We can't make any changes to your TurboTax file as it is your tax return and must be completed by you.