I have ~$10k of capital loss carryover from 2020, and only $3k of that can be used in 2021 tax return to lower income, so i should have some carryover but it shows 0

[veeral]

Do all of capital loss carryover get applied to the current years tax filing? I had over 9K from last year and now my carryover from 2021 shows as zero. Is this an error or all my losses were applied from 2020 and 2021 to lower my capital gains? Where can i see it?

[VolvoGirl]

Yes you can use more of it.

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.  Just enter the prior year carryover amount.

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.

[JillS56]

Yes, a capital loss can be used to offset capital gains during a taxable year, allowing you to remove some income from your tax return. If you don't have capital gains to offset the capital loss, you can use a capital loss as an offset to ordinary income, up to $3,000 per year.  

You will see that the loss is applied to the capital gain by looking at Schedule D.  Line 7 of Schedule D shows the net short-term capital gain(loss), Line 15 oF Schedule D shows the net long-term capital gain(loss).  Line 16 shows the combined net capital gain(loss).  

On Form 1040, Line 7 will either have ($3,000) or the remaining capital gain if there was not enough loss to eliminate the gain.

[veeral]

Thank you!

[veeral]

Thank you!