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posted Apr 2, 2023 7:23:42 PM

If divorced in 2022, do I only take $1500 as maximum capital loss carryover this year?

When married filing a joint return, we took the $3000 capital loss carryover each year. We divorced in 2022 so do we each take $1500 as our loss?

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2 Replies
Level 15
Apr 2, 2023 7:26:49 PM

You each enter half of the carryover over from 2021.  Then you get the full 3,000 max loss.  Let Turbo Tax figure it out.

Enter a Capital Loss Carryover under

Federal Taxes or Personal (Home & Business)

Wages and Income

Then scroll down to Investment Income

Capital Loss Carryovers - Click the Start or Update button

You enter the full amount that carried over, not just the 3,000

 

Level 15
Apr 2, 2023 7:30:19 PM

Do you know the carryover amount from 2021? 

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.

 

And if you have a negative AGI or negative taxable income it will show up on 1040  BUT it won't reduce the carryover to the next year.

 

There is also a Carryover Worksheet. There is a Capital Loss 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.

 

And here's some info on divorced.  If you used Turbo Tax last year you should start a brand new account for yourself and not transfer from last year.  You can not remove a spouse or switch the order of names.

 

Online is only good for 1 return.  But you can use the same email address for 5 accounts.   How to start another return in the Online version  

https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-start-another-return-in-turbotax-online/00/25596

 

Divorced FAQ

https://ttlc.intuit.com/community/family/help/what-if-i-was-divorced/00/25830