I reported a negative $12,261.00 on Schedule E, Line 22 for 2020. Why isn't the system this year applying that loss against 2021 income?

[abv718]

This year i had to repot the ERAP I received and the system is reporting the entire amount as income, and it's not offsetting last year's loss.  NOwhere am I able to indicate the loss of last year and i was told it would carry over against either a sale or other income.

[JamesG1]

I assume the ERAP is taxable income unless the income is specifically excluded from taxable income by the IRS.  What is the name of the program?  Please clarify.

Does your Federal 1040 tax return contain IRS form 8582?  The prior years unallowed losses should be listed under Part I line 1c.  Perhaps the loss carried forward but you still did not qualify to take the loss.

To view this tax form, go to Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

Are you in the same TurboTax account as last year?  Is the carryover in your tax return?  View Federal / Income & Expenses / Rental Properties and Royalties / Carryovers, limitation, at risk info, etc to see if the carryover amount is there.

[abv718]

I used Turbo Tax last year and did it myself.

I searched high and lo and to how to handlel this last year!

First I even let Turbo Tax do do the taxes.  They didn't submit anything because I toook it over. 

I saw something last year about that for 8582 but I'm no tax expert.  AND Turbo tax didn't tell me I needed that.

They told me that the net loss on my Schedule E would carry over until I had income to offset the net loss. 

OF course I had expenses.. so it was income of $3090 less my expenses  which netted a loss of the $12k. 

AND NOw I'm working on Turbo Tax and no where does that amount feed in to offset the ERAP.

[ThomasM125]

When you enter your rental activity, edit your rental Property Profile and you will come to a page that says Do Any of These Situations Apply to This Property? and one of the options is I have passive activity real estate losses carried over from a prior year. Choose that option and you can enter your passive loss carryovers from the previous year if they aren't already listed.

You will see the carryover losses entered on line 22 of your schedule E. However, they will only show if you have a net income from your rental activity in the current year. Otherwise, they get carried over to the next year.