The carryover worksheet refers to Federal items like losses, deductions and other entries, that are carried from last year to be used this year.
An example of a carryover item are carryover losses.
- Carryover losses on your investments are first used to offset the current year capital gains, if any. You can deduct up to $3,000 in capital losses ($1,500 if you're married filing separately). Losses beyond that amount can be deducted on future returns as a capital loss carryover until the loss is all used up.