How specify a capital loss carryforward?

[kmomof2boys]

When entering my Capital Loss in TurboTax Desktop 2022, it said it would  check before I file if I could carry forward to 2023.  I got through all my federal and state checks, but it never asked me about carryforward, but instead I have a very large tax return.  Is there a way for me to check and specify a carryforward.

[VolvoGirl · Accepted solution]

You don't calculate it or specify to carry it over.  It is done automatically.  Did you have a carryover loss from 2021?  Or is this new 2022 losses?

If you have a net loss for the year you can only deduct 3,000 (1,500 MFS) max on your tax return.  The rest you have to carryover to next year.  You have to report the carryover every year until it's used up.  You can't skip a year.  

On the income page The 2022 column shows the carryover to 2023 (not your current loss for 2022).  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.

[MonikaK1]

If your capital losses exceed your capital gains, TurboTax will automatically carry the excess forward if you prepare your 2023 return in the same TurboTax account. 

The amount of the excess loss that you can claim to lower your income for 2023 will be the lesser of $3,000 ($1,500 if married filing separately) or your total net loss as shown on line 16 of Schedule D.

See this IRS article and this TurboTax tips article for more information on this topic.

You can preview your return before filing to find out how your taxes were calculated and review the forms and schedules that TurboTax has prepared from your entries. See here for details.