topic Overriding Sch D Capital Loss Carryovers in Get your taxes done using TurboTax

Overriding Sch D Capital Loss Carryovers

Roninroundrock — Sat, 27 Mar 2021 17:12:57 GMT

HI - ran into a snag on my Turbo Smart Check final review.

Got 2 errors on my Schedule D Line 6 & Line 14 Override of the Capital Loss Carryover.

Turbotax is telling me that the Lines 6 & 14 values should not be Overridden for Electronic Filing.

But I filed a 2019 Amended Return last year which changed these carryover values - and of course, they have not yet finished processing the Amended Return.

So I have a couple of questions:

1) I haven't done the Electronic Filing yet, but will Turbotax go ahead and let me file electronically - or will Turbotax in all its wisdom prevent me from filing electronically since they are telling me I should not do that (but they say, "should not be overridden" as opposed to "cannot be overridden").

2) If Turbotax prevents me from filing electronically, is the only option left for me is to do a paper filing, I guess along with some kind of explanation of the reason for the override (do they even read your explanations).

2a) OR does Turbotax have a way to add explanations such as this to your electronic filing.

Very low chance of having an auditable return based on everything else, except that I imagine the computers check for these differences and would perhaps flag the return.

Any advice on the best way to proceed.

ron in shawnee

Re: Overriding Sch D Capital Loss Carryovers

AmyC — Fri, 02 Apr 2021 00:59:19 GMT

You are right, should not is a warning. You can still e-file.

The IRS runs about 3 years behind in checking returns in depth. By the time this one is really checked, your amended will have processed.

Re: Overriding Sch D Capital Loss Carryovers

Roninroundrock — Fri, 02 Apr 2021 13:15:18 GMT

OK Amy, thanks.

Regarding the 3 years you mention, do you happen to know if my refund would be held up during that period, which I imagine it would be if they catch the error before they process the large refund. Large not particularly because of this error, but I overpaid my Quarterlies because I expected a much larger Capital Gains on some land that I sold, but was able to use a stepped up value on the Basis.

I don't know how else to handle this and think this is still the best way. I imagine if I sent paper, the data would just be entered by a clerk, any accompanying explanation ignored and the same thing would happen that will happen when I file electronically - and I am willing to put up with any intervening problems as everything I have done is legitimate - except that they have a lot of my money.

Appreciate you feedback.

ron, now in shawnee