How Is my Capital Loss Carry over for 2021 -$1,134.00? I thought you can only carry over $3,000 every year? 2020 I had a loss of -$31,699.00 and 2021 I gained $28,092.00

[jaytee2121]

I expected to be paying a massive chunk on the capital gains for this years taxes but Its no where near to what I expected to have to pay out. Did It cancel out what I owe because of my previous years lost? I'm so confused right now because I thought you were limited to a $3,000 deduction every year that just rolled over but Turbo Tax says different? I wish I could share a screen shot of what I'm working with here

[VolvoGirl · Accepted solution]

No you carry over the rest.  The 3,000 is just the max loss you can take on your tax return.   

You get to first offset the loss against any gains you have each year so that can use more of it up.  Then after applying the loss to the current gains you can take a max loss of 3,000 (1,500 MFS)per year.  Turbo Tax does all the calculations for you.

[VolvoGirl]

And On the income page The 2021 column shows the carryover to 2022 (not your current loss for 2021).  Schedule D doesn't actually show the carryover amount. To find your  Capital Loss Carryover amount  you need to look at your  return schedule D page 2.  Line 16 will be your total loss and line 21 should be a max loss of 3,000.  The difference between line 16 and 21 is the carryover loss for next year.

There is also a Carryover Worksheet showing the carryover from the prior year and the current amounts.  Then there is also the Capital Loss Carry Forward worksheet showing the amount transferring over to next year.

In the Online version you have to save your return with all the worksheet as a pdf file to your computer to see the Capital Loss Carry Over and Carry Forward worksheets.

In the Desktop program you can go to Forms and find it in the list in the left column.

[jaytee2121]

Thank you so much for taking time of your day to offer me advice! I was so overwhelmed and confused. You are freaking awesome Volvo girl! -AIR HIGH FIVES-

WOOOOOOO GO VOLVO GIRL! YOU ARE THE SHOW