Capital loss carryover not generating for 2019

[macuser_22]

Is this known issue your problem - the 2018 did not transfer properly.

https://ttlc.intuit.com/community/tax-topics/help/capital-loss-carryover-worksheet-line-1-calc-error...

(I know it says line 7, but it is also if lines 8 & 9 subtracted from line 7 would be a negative number)

It is being fixed, but it you don't wan to start  over when it's fixes then just enter the correct carry-over manually.

[barjatya]

VolvoGirl... Thanks! Your detailed response seems to make sense, but then I do have a followup:

1> I understand your explanation of why there is a 0 in 2019 column, because nothing is getting carried over to 2020. BUT then shouldnt my 2019 gains have reduced by the $5055 Capital Loss Carryover from 2018? They are still saying the original amount. Furthermore, my refund should have increased after the Capital Loss Carryover was deducted from my taxable income total, but it did not.

I could try to do it again: is there a way that I could remove capital loss carryover line completely and see what the refund is, then add it back again and see if it really impacted my taxable income and thus the refund.

2> TurboTax does not allow me to see the worksheet PDF until I pay for the product. I do not have any issue with that. But say that there is a problem still in the worksheet PDF, will I be able to download the Desktop product to go the route that ebgbard has suggested? Or will I have to pay for it separately again?

Thanks

[barjatya]

macuser_22 ... it may be the same issue ... but I think the page you referred to points to Schedule D... which I cannot see until I pay TurboTax. I am hesitant to do so because if I pay and it does not solve it then I am stuck having to pay H&R Block or paying for turbotax download.

Also... the page you linked says it will be fixed by April 10, but its April 12 today and it does not seem to have been fixed.

[macuser_22]

That bug affects the 2019 Schedule D "Capital Loss Carryover Worksheet" line D (taxable income from 2018 1040 line 10) that can affect the other figures on the worksheet.  I do not know if it was fixed or not since the only way to test is to start a NEW totally blank tax return and then as a first step, transfer the 2018 data.   Once a 2019 tax return has been started it cannot be re-transferred.

[akf3]

I also had the exact same issue of loss carryover from 2018 (and prior years) not transfer into 2019, for both kids tax returns.  I believe this is a bug for sure.  (how do you report a bug to Intuit?)

How I got around this problem was start from scratch, after transferring personal data, DO NOT IMPORT anything else yet (brokerage accounts, W-2 whatever), which is one of the first prompts if you walk through the Wages & Income section.  Instead, jump to the "Investment Income" section within Wages & Income, update the Capital Loss Carryover first.  That way its in your 2019 tax return, THEN import whatever documents, like brokerage, bank statements etc.   Everything worked like a charm then.

[neilsklarew]

My capital loss carryover for 2017 was $39,007 short term loss and $32,999 long term loss which sowed as $72,006 total on line 16.  After taking the $3000 maximum loss for 2017, the carryover capital  loss for 2018 should have been $69,006.   

For 2018 I had a short term capital gain of $3188, but did not show an import of any capital loss carryover from 2017 an a long term capital loss of $9877 with an import of a long term  carryover of only $9878.  The result was a capital loss carryover on lone 16 of only $7854. This was clearly a computer programming error for importing insufficient capital losses for both short and long term from 2017 to 2018.

This continued to 2019 where I had no short term capital gain of loss and with no carryover loss and a long term capital loss of $1752 with a loss carryover of only $4854 for a long term capital loss of only $6810.  This resulted in a total loss on line 16 of only $6810.

How does this get corrected for years 2018 and 2019 so it will be correct when I submit my 2020 taxes?  

[item8]

I thought I was the only one having this issue. Even though I had ST capital loss carryover, I was still paying taxes on dividends that didn't exceed the capital losses. I guess I'll have to submit amended returns through a properly functioning tax software that correctly calculates the capital loss carrover.

Developers, please take a look at this.

[Hal_Al]

Capital loss carry over (short term or long term) is not applied directly against current year dividend income. 

Your dividends will show on line 3b of form 1040.  Your net capital gain or loss (after combining the capital loss carry over with any 2019 gains or losses on Schedule D)  will show on line 6.  If there is a loss on line 6, it will effectively  reduce your total income, subject to tax, not just your dividend income.

[JayKepps]

In tax year 2020, I had very small amounts of dividend payments and capital gains.  TurboGLITCH brought in just enough capital loss carryover from previous year to compensate for this, PLUS an additional $3000, which should have effectively reduced my taxable income.  

Yet my refund amount did not change one bit.  Any suggestions on this problem that's existed for YEARS but which has been ignored by intuit?

[Hal_Al]

@JayKepps  You say that TT "brought in just enough capital loss carryover from previous year to compensate for this, PLUS an additional $3000".

Not exactly. TT brought forth your entire capital loss carry over from 2019 and put it on line 6 and/or line 14 on Schedule D. There it off set any 2020 capital gains and Capital gains distributions (but not dividends, not even "qualified" dividends).  Anything left over, up to $3000, went to line 6 of form 1040, where it reduced your other income. 

So just because the "refund meter", at the top of the page, didn't change doesn't mean TT hasn't done it's job. It the numbers are on the form lines, where they're suppose to be, it's "mission accomplished".

This is fundamental stuff that hasn't changed in years, and affects lot's of people. 

[WASTE1226]

FOR MY 2020 TAXES, I HAVE A $7000 CAPITAL LOSS CARRYOVER FROM 2019 AND TURBOTAX IS USING THE TOTAL AMOUNT AGAINST MY GAINS IN 2020 INSTEAD OF A MAX OF $3000.

[Hal_Al]

@WASTE1226  said "FOR MY 2020 TAXES, I HAVE A $7000 CAPITAL LOSS CARRYOVER FROM 2019 AND TURBOTAX IS USING THE TOTAL AMOUNT AGAINST MY GAINS IN 2020 INSTEAD OF A MAX OF $3000."

Yes, that's exactly what is suppose to happen. Your entire capital loss carry forward is applied to current year gains (long term and/or short term).  Only if there is still some capital loss left over does the $3000 limit apply.

Another way to say it: there is no limit on how much capital loss can be applied against gains.  The $3000 limit is when using capital losses to offset ordinary income. 

[VolvoGirl]

@WASTE1226   That's right. 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.

The 3,000 is the max Loss you can take on your tax return after applying it to the gains.

[diasjj]

I think the reason some people are having trouble with this is they are not aware a carryover loss can reduce capital gains over and above the $3,000 IRS limit for carryover losses.  I didn't understand that until coming to page three of this thread, not to mention the TT software does not explain the situation at all.

[VolvoGirl]

@diasjj   What problem?  We explained the last misunderstanding.