topic Capital loss carryover in Deductions & credits

Capital loss carryover

Muse9876 — Sun, 28 Nov 2021 15:32:02 GMT

I had capital loss carryover on my 2019 taxes that did not get entered in my 2020 taxes. This amount would have no affect on my 2020 taxes as I had more capital losses and received the standard $3000 for losses. Do I need to amend my 2020 taxes to add the 2019 carryover loss or can I wait to add to 2021 taxes?
If I need to amend 2020 taxes- I did not see anywhere on the 1040x amendment form to do for capital loss carryover nor did I find anything on the IRS instructions to amend taxes for not listing past capital loss carryover.

help please!

Re: Capital loss carryover

Critter-3 — Sun, 28 Nov 2021 16:05:03 GMT

Yes you should amend the 2020 return if for nothing else but to produce a correct 2020 return to transfer to the 2021 program. And it should be filed with the IRS as well.

However if you already started the 2021 return then look for this entry screen in the investment section (screenshots are from the 2020 program but it will be the same for the 2021 program) :

Re: Capital loss carryover

Muse9876 — Sun, 28 Nov 2021 16:29:00 GMT

Well I can file an amendment through turbo tax because it keeps glitching, so I was going to use the form 1040x and mail it in, but I see nothing on that form or in instructions to correct a capital loss carryover.

In the screen shots you provided - when I do file my 2021 taxes (I haven’t started yet) I can included the carryover loss from 2019 as failing to provide on my 2020 tax return?

Re: Capital loss carryover

Muse9876 — Sun, 28 Nov 2021 16:31:13 GMT

So I meant *can’t through turbo tax due to it glitching

Re: Capital loss carryover

Critter-3 — Sun, 28 Nov 2021 16:32:32 GMT

Prior year amendments MUST be mailed at this late date. Choose to mail it in the FILE tab and the correct forms and instructions will be populated in the Print Center.

And you MUST use the carryover on the 2020 return first then the amount left over gets carried to the 2021 return. It could be the same figure from the 2019 return but you should do the computation first ... don't just assume.

Re: Capital loss carryover

Critter-3 — Sun, 28 Nov 2021 16:34:27 GMT

If you amend the 2020 return when you start the 2021 return you can simply transfer the prior year corrected return and the carryover should float thru automatically.

Re: Capital loss carryover

Muse9876 — Sun, 28 Nov 2021 16:38:30 GMT

Re: Capital loss carryover

Muse9876 — Sun, 28 Nov 2021 16:40:44 GMT

I keep receiving this message on turbo tax when I try to amend. Which is the same thing to keep doing when I was filing my 2020 taxes thus the 2019 losses did not carry over.

so I can’t do it online - that’s my issue and I can’t find where to amend this on the 1040x form!

Re: Capital loss carryover

fanfare — Sun, 28 Nov 2021 18:12:54 GMT

@Muse9876

You get the 1040-X as a fillable PDF at the IRS website and put "2020" in the tax year spot above your name and address.

Form 1040-X is used for many purposes, which you state in Part III.

Since you already took your $3,000 max deduction for losses and that is the correct number,

then you are not changing any original amounts on Form 1040, and you don't have to fill out lines 1-23.

Leave that all blank.

Attach the corrected Schedule D (pages 1-2) to your Form 1040-X with an explanation in Part III.

Mail to the address specified in the "Instructions for Form 1040-X", also online.

Re: Capital loss carryover

Muse9876 — Sun, 28 Nov 2021 18:45:45 GMT

So I have to create a new Schedule D form?

I am unable to use turbo tax to go into my 2020 return to access my taxes/forms (to make changes) as it keeps spinning going on two hours.

I have both 2020 and 2019 saved as PDFs on my computer. Can I just attach a copy of my Schedule D form from 2019 with a notation to add to my 2020 capital losses and attach to 1040X?

Re: Capital loss carryover

rjs — Sun, 28 Nov 2021 19:15:41 GMT

@Muse9876 wrote:

Can I just attach a copy of my Schedule D form from 2019 with a notation to add to my 2020 capital losses and attach to 1040X?

No, you can't expect the IRS to do the calculations for you. You have to file a proper Form 1040-X with an amended Schedule D attached, showing the correct capital loss carryover, as fanfare said.

Are you following the instructions at this link to amend your 2020 tax return?

How do I amend my 2020 return?

Re: Capital loss carryover

Muse9876 — Wed, 01 Dec 2021 22:29:53 GMT

I am unable to use amend on Turbo online because halfway through I get this message:

So I downloaded turbo tax desktop to amend through there but my .tax file on online turbo will not download ( keeps spinning four blue dots going on over an hour) so I can’t transfer transfer into desktop to amend from there.

Re: Capital loss carryover

Muse9876 — Sun, 28 Nov 2021 19:27:09 GMT

Re: Capital loss carryover

Muse9876 — Sun, 28 Nov 2021 19:30:07 GMT

Constant spinning blue dots.

Re: Capital loss carryover

fanfare — Tue, 30 Nov 2021 00:01:25 GMT

Again you can get 2020 Schedule D in fillable PDF format from the IRS website.

Copy all the items from your filed Schedule D and then add the carry over amount(s) in the correct spot(s).

That's Line 6 and 14.

Redo the arithmetic for the affected totals, carefully.

---

Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.
You will need it if you are audited by the IRS, or to amend if a TurboTax update changes your return or for any other reason,
SUCH AS, adding carryover amounts that you previously left out.
AND, to find your AGI next year.

---

You don't need any tax software to do this, because you said your $3,000 loss on 1040 is correct.

Keep a copy of your amended return for your records.

Re: Capital loss carryover

MauiJohn — Mon, 06 Mar 2023 02:46:13 GMT

I am about to start my 2022 tax filing.

I need to ammend my 2020 return to incorporate a k-1 that I forgot about. It will record some short term and long term capital losses that I would like to carry forward.

Should I file a 1040x through turbo tax then immediately file my 2022 return?

How do I make sure my 1040x loss carryforward gets carried through to my 2022 return?

Thank you 🙂

Re: Capital loss carryover

rjs — Mon, 06 Mar 2023 03:18:17 GMT

@MauiJohn

You have to carry over capital losses from year to year. You can't skip a year. After you amend your 2020 tax return you have to amend your 2021 tax return with the capital loss carryover from 2020. Then, if the loss is not used up in 2021, you can carry it over to 2022.

You can file your 2022 tax return as soon as you have finished the 2021 amended return. You do not have to wait for the IRS to process your 2020 and 2021 amended returns before you file your 2022 tax return, but you have to finish preparing the 2020 and 2021 amended returns in order to correctly calculate the capital loss carryover to 2022.

If you are able to transfer information from the 2021 amended return when you start your 2022 tax return, the carryover should be entered automatically. Otherwise, in the Search box type "capital loss carryover" (without the quotes), then click the link that says "Jump to capital loss carryover." When it asks whether you know your capital loss carryover amounts, select "No, I need help figuring out my capital loss carryover amounts" (even if you think you know the amount). It will then ask you to enter the information from your 2021 amended return that is needed to calculate the amounts to carry over to 2022.

Re: Capital loss carryover

Critter-3 — Mon, 06 Mar 2023 12:12:44 GMT

FYI ... the 2020 and if needed the 2021 amendments will need to be MAILED in ... they cannot be efiled. AND mail them in separate envelopes so they both get processed properly. Same with the states if you also need to amend them.

Re: Capital loss carryover

MauiJohn — Sat, 18 Mar 2023 17:48:16 GMT

Amazingly helpful.

This is what the "Champ" badge means.

Thank you so much.