why is tubotax not offsetting my capital losses from capital gains for NJ state return?

[MaryK4]

New Jersey does not allow you to report a  capital loss.  You can check your Schedule NJ_DOP. 

[idris75g]

Thank you, Mary. I understand NJ does not allow a net capital loss. However, if I have some capital losses (line 1 in NJ-DOP), I should still be able to offset it from my capital gains distribution (line 2 in NJ-DOP), provided Net Gains (line 4) is 0 or higher.

[rjs]

I did a test of the situation you are describing and TurboTax did offset the capital losses against the capital gain distributions. I don't know why it's not working for you.

On your Schedule NJ-DOP, what are the exact amounts on line 1, in column f? What are the exact amounts on lines 2, 3, and 4?

If you are using the desktop TurboTax software:

• Make sure your software is up-to-date. There was an update to the federal software yesterday. The most recent update to the New Jersey software was on March 20.
• If you are looking at Schedule NJ-DOP in forms mode, make sure you are looking at line 1 of the actual form, not the Smart Worksheet at the top.
• Make sure you do not have any overrides in your federal or state tax return. If an amount is overridden the numbers will be red in forms mode.

[idris75g]

Thank you rjs. I'm using the online version of Turbotax (not the desktop version), and it is not offsetting my losses against CG distributions.

I am not at the stage where I see my NJ-DOP, as I haven't finalized my return due to this offsetting error.

[rjs]

If you cannot look at the actual tax forms you don't really know what TurboTax is doing. (This is the biggest drawback of using TurboTax Online instead of the desktop TurboTax software.) A summary screen in the TurboTax interview is not a reliable indication of what's on the forms. The interview screens are just an abbreviated view. Since it works correctly in the desktop software, and Online is basically the same software, I suggest that you hold off pursuing this any further until you get to the point where you can actually see Schedule NJ-DOP. Post back here if Schedule NJ-DOP, or Form NJ-1040 line 19, is not correct.