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

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?

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.

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.

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

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

Thank you AmeliesUncle!  I got it.