topic Capital Loss Carryover bug in Get your taxes done using TurboTax

Capital Loss Carryover bug

fourteen — Sat, 28 Mar 2020 21:54:39 GMT

I think there is a bug with how Capital Loss Carryover is calculated in TurboTax Deluxe 2019 (Desktop, Windows). It seems like the bug has been introduced in a recent update to TurboTax Deluxe 2019 because a tax return I started on 3/7 does not show the problem, while a tax return I start 3/28 shows the problem.

The problem is when transferring a 2018 tax return where "2018 Form 1040, line 10" would have been a loss if you could enter a negative number on that line.

Here is how to replicate the problem:

start new return
transfer a 2018 return (a .tax2018 file) where "2018 Form 1040, line 10" would have been a loss if you could enter a negative number on that line
go to forms view, and view the "Capital Loss Carryover Worksheet" form
in the "Capital Loss Carryover Worksheet" form, observe "2018 Capital Loss Information Smart Worksheet, D, Taxable Income" is 0 (this is incorrect; it should be the negative number from "2018 Form 1040, line 10" if a negative number could have been entered on that line)
in the "Capital Loss Carryover Worksheet" form, observe "line 1" is 0 (this is incorrect; it should be the negative number from "2018 Form 1040, line 10" if a negative number could have been entered on that line)

Re: Capital Loss Carryover bug

macuser_22 — Sat, 28 Mar 2020 22:15:04 GMT

I don't see how it can be other then zero when the 2018 1040 line 10 instructions say "subtract line 8 and 9 from line 7. If zero or less, enter 0".

There was a bug that was adding the 2018 line 9 UBT (if any) to line 10 when it transferred that made the carryover income incorrect. That was fixed in the update.

Re: Capital Loss Carryover bug

fourteen — Sat, 28 Mar 2020 22:27:02 GMT

See IRS publication "2019 Instructions for Schedule D", page D-12 where the "Capital Loss Carryover Worksheet" instructions are. Those instructions specify for line 1 ("Capital Loss Carryover Worksheet, line 1"):

Enter the amount from your 2018 Form 1040, line 10, or your 2018 Form 1040-NR, line 41. If the amount
would have been a loss if you could enter a negative number on that line, enclose the amount in
parentheses

Thus, the amount on "Capital Loss Carryover Worksheet, line 1" can/will/should be a negative amount if "2018 Form 1040, line 10" would have been a loss if you could enter a negative number on that line.

And as I mentioned, that is how TurboTax Deluxe 2019 used to behave and automatically filling it in when transferring a 2018 tax return. However, after some recent update the behavior has now changed and I believe the new behavior is incorrect and is a bug.

Re: Capital Loss Carryover bug

macuser_22 — Sat, 28 Mar 2020 23:22:36 GMT

I see what you mean. They might have broken it with the UBT fix. If you are using the forms mode then you can manually enter a negative number in the worksheet as a workaround.

Re: Capital Loss Carryover bug

fourteen — Sat, 28 Mar 2020 23:29:57 GMT

I know I can "override" but I would prefer to use an updated and fixed version if TurboTax.

>There was a bug that was adding the 2018 line 9 UBT... That was fixed in the update.

Where was this reported, that there was a bug and that it was fixed?

When accepting and doing the updates using the "Check Now" button when TurboTax starts up, after the updates have completed there is a "confirmation screen" with links to what has been updated. However those links are sadly broken. Your "That was fixed in the update" sounds like you have access the information of what forms and/or functionality was updated in each update, yes?

Re: Capital Loss Carryover bug

macuser_22 — Sat, 28 Mar 2020 23:51:05 GMT

@fourteen wrote:

I know I can "override" but I would prefer to use an updated and fixed version if TurboTax.

>There was a bug that was adding the 2018 line 9 UBT... That was fixed in the update.

Where was this reported, that there was a bug and that it was fixed?

When accepting and doing the updates using the "Check Now" button when TurboTax starts up, after the updates have completed there is a "confirmation screen" with links to what has been updated. However those links are sadly broken. Your "That was fixed in the update" sounds like you have access the information of what forms and/or functionality was updated in each update, yes?

It was reported to a moderator a while back. When I tested it recently that seems to have been fixed.

Since the prior bug is fixed and that is exactally what they were messing with, I am just guessing that they overlooked that they need to transfer the amount from 2018 line 7 minus 8 & 9 and not just line 10.

Re: Capital Loss Carryover bug

fourteen — Sun, 29 Mar 2020 00:02:36 GMT

It was reported to a moderator a while back.

How do I report this suspected bug to a moderator?

I called the 800 number but that was... well... not fruitful.

Re: Capital Loss Carryover bug

macuser_22 — Sun, 29 Mar 2020 00:08:08 GMT

I reported it already - don't look for a fix quickly. The QBI fix took a month.

Re: Capital Loss Carryover bug

fourteen — Sun, 29 Mar 2020 00:31:54 GMT

Thanks for reporting it.

How will one know if/when this is fixed? I would follow those "what was fixed" links in the "confirmation screen" when the updates have completed, but they are broken which is a bummer too. It would be good if that could be reported as well...

Thanks.

Re: Capital Loss Carryover bug

macuser_22 — Sun, 29 Mar 2020 00:35:06 GMT

Unfortunately they no longer provide release notes or bug fix notes.

Re: Capital Loss Carryover bug

macuser_22 — Sun, 29 Mar 2020 00:45:44 GMT

I would not wait for a fix - just enter the correct data manually. Users that did not have a 2018 TurboTax file would have to manually enter the carry forward data anyway.

Re: Capital Loss Carryover bug

fourteen — Thu, 02 Apr 2020 23:37:18 GMT

FYI, Intuit has now acknowledged the bug, see Capital Loss Carryover Worksheet Line 1 Calc. Error

However, even that article is incorrect - it states that you may be impacted if Line 7 of your 2018 Form 1040 is a negative number

I am impacted and line 7 on my 2018 Form 1040 is not a negative number.

The article should have stated that you may be impacted if Line 10 of your 2018 Form 1040 would have been a negative number if a negative number could have been entered on that line.

Re: Capital Loss Carryover bug

macuser_22 — Fri, 03 Apr 2020 00:03:27 GMT

Yep, I was just about to post that but you beat me to it.

Re: Capital Loss Carryover bug

salongi24 — Tue, 02 Mar 2021 18:08:39 GMT

can someone please actually assist with this?

Re: Capital Loss Carryover bug

macuser_22 — Tue, 02 Mar 2021 18:14:47 GMT

@salongi24 wrote:

can someone please actually assist with this?

Assist with what? This is a question about a *2019* tax return that did not import properly from 2018. The issue in this thread was a *2018* issue.

Please ask a NEW question and start your own thread with the details of your problem rather add on to an old thread about a 2018 problem.