How to enter your loss carryover: While inside the software and working on your return, type carryover in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to carryover. Select that to get to the general area.
Here's how it works: Short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. Net losses of either type can then be deducted against the other kind of gain.
If the net gain is short-term, then you pay short-term capital gains rates. If the net gain is long-term, you pay long-term capital gains on that net.
If someone had an overall net capital loss for the year, they can deduct up to $3,000 of that loss against other kinds of income, including your salary and interest income. The remainder will carry forward to future years.
More information on capital gains/losses can be found at this link Capital Gains and Losses .
Trying to input my carryover capital loss of $3000 on my 1040 federal tax form
Not having any luck posting my carryover capital loss for $3000.
If you used TurboTax (TT) last year, that usually happens automatically. But you can enter it (or change the automatic entry) in the interview.
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Investment Income
-Capital Loss carryover