TurboTax did not apply the maximum limit of capital loss carryover $3000 for 2024

[Vinny_2024]

I have more than 100k capital loss from 2023 and 3k more loss in 2024, but TurboTax applied $518 capital loss carryover for 2024.  What can I do to fix this issue or wait for TurboTax update?

Thanks,

Vinny_2024

[AmeliesUncle]

If you have a $3000 loss in 2024, it shouldn't be applying any of your carryover because you have already maxxed out the usable $3000.

Or did you actually only have a $2482 loss in 2024, so that is why it is applying $518?

[Vinny_2024]

Here is the detail of the issue  

- Capital loss in 2024: -$3137.44

- Capital loss carryover from 2023: -$102,247

- All capital losses used in 2024: $518

- Remaining losses forward to 2025: -$104,857

I need to understand why the capital losses used in 2024 is $518 instead of $3000.

[AmeliesUncle]

How much other income do you have on the tax return?  If there isn't enough income to offset, it won't use up your capital loss.

[Vinny_2024]

Hi All,

After TurboTax updated, it re-calculated the capital loss carryforward in Capital Loss Carryforward Worksheet as shown below

I don't understand why it entered -469 instead of 0 (zero) in line 1; my taxable income is 0 (zero) in line 15 of the form 1040.  Therefore, 2531 is the result of combining lines 1 & 2 (see lines 3 & 4).  That's the capital losses used in 2024, see the report following

I think TurboTax applied -469 instead of 0 (zero) in this case because $2531 is the best capital loss deduction for $0 taxable income; the refund is not changed if $3000 is applied.  Please, help me to understand this case.

Thanks,

Vinny

[AmeliesUncle]

The rest of your income and deductions totaled $2531.  Therefore, rather than using the full $3000, it only uses $2531. 

[Vinny_2024]

Thank you AmeliesUncle!  I got it.