If I can get money back

[Ansmyr]

Hello I started options trading and I lost $2,000 I didn’t make any money I wanted to know if I can get some of that money back when I file for taxes in February.

[rjs]

When you file your tax return, your taxable income will be reduced by the amount of the loss, so your tax will be lower or you will get a bigger refund. For example, if you are in the 24% tax bracket your $2,000 loss will reduce your tax by $480 (24% of the loss).

[Ansmyr]

I’m sorry I don’t get it. I lost all $2,000 and made no profit. Wouldn’t I get some of the $2,000 back when I file taxes with the 1099 forms and my w2s ? 

and I would also like to know if I get money back if I paid my college out of packet this year.

[VolvoGirl]

Sorry the government is not going to pay you for your losses.  But you can subtract  up to 3,000 of losses each year against your income so you pay less taxes. If you have more than a 3,000 loss you have to carryover the rest to the next year.

[rjs]

You might be able to claim a tax credit for the college tuition that you paid - either the American Opportunity Credit or the Lifetime Learning Credit - depending on your specific situation. TurboTax will ask you questions to determine whether you meet the requirements to claim one of those credits.

You ask whether you will "get money back." You don't get money back from the government for specific expenses or losses. Whether the government actually sends you a check or not depends on your total tax for the year and how much tax you had withheld from your pay during the year. Your tax return calculates your total tax for the year, taking into consideration things such as your investment loss and tuition that you paid. If the amount of tax that you had withheld from your pay is more than the total tax on your tax return, you get a refund of the excess. If the tax that you had withheld from your pay is less than the total tax on your tax return, you have to pay the difference when you file your tax return.