Last year an accountant prepared my taxes and this year I am doing it myself, so I have to input all info into TurboTax (as TurboTax can’t pull from last year’s filing). In the screen for Capital Loss Carryover, TurboTax asks for info from last year’s Schedule D (both regular and AMT versions) and Form 1040. However, nowhere is there a place to enter info from last year’s Capital Loss Carryover Worksheet (IRS Publication 550) which shows that no capital losses were actually used last year. So the amount of capital loss carryover from last year that TurboTax is showing is incorrect (too low). How can I correct it? (I am using the web/online version of TurboTax.)
Do you need to enter the Capital Loss Carryover from 2023?
Enter a Capital Loss Carryover under
Federal Taxes or Personal (Home & Business)
Wages and Income
Then scroll down to Investment Income
Capital Loss Carryovers - Click the Start or Update button
You enter the full amount that carried over, not just the 3,000
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 if you still have a loss, you can take a max loss of 3,000 (1,500 MFS) per year on your tax return. Turbo Tax does all the calculations for you. Just enter the full prior year carryover amount.
Thank you VolvoGirl. I appreciate your taking the time to reply. It doesn't really answer my question though. In the Capital Loss Carryover Section, TurboTax prompts one to enter: 2023's 1040 line 15 as well as 2023's Schedule D lines 7, 15, and 21 (along with AMT Schedule D amounts if applicable). Based on that, TurboTax calculates the Capital Loss Carryover from 2023. However, the amount TurboTax calculates does NOT match the amount from 2023's Capital Loss Carryover Worksheet (IRS Publication 550). The Capital Loss Carryover Worksheet takes into account situations (e.g. zero taxable income) which result in no capital loss being used in a year (e.g. 2023) and so the amount of the capital loss carryover from the previous year (e.g. 2022) is the same as the remaining loss carry over to the following year (e.g. 2024). Whereas TurboTax seems to be assuming capital loss was used in the previous year and so the amount it understands as being capital loss carryover from 2023 to 2024 is too low.
I just completed my 2025 taxes (2024 income) and I run into the same problem. Is there an answer?
Your capital loss carryover should transfer to your 2024 tax return. If it didn't, refer to the TurboTax article How do I enter my capital loss carryover? for navigation instructions.