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Level 2
April 14, 2026
Question

CA capital losses carryover deduction - how do I edit it?

  • April 14, 2026
  • 2 replies
  • 59 views

I want to edit CA Form 540 NR, Part 2, Section A, line 7a, Column E to include my CA carried over losses and deduct it from my CA income. I cannot find a form that let's me edit it. It's currently at 0 and I have enough losses to deduct 3000. Please help.

    2 replies

    AmyC
    Level 15
    April 14, 2026

    You need to go through the interview to trigger the CA Capital Loss Carryover Worksheet. You track the loss based on years you were a resident and years while not a resident. As a CA nonresident, loss from non-CA income is not recognized. Your loss must be CA source income -real estate/ business/ partnership.

     

    Follow these steps:

    1. Open your California return.
    2. Continue through the interview until you reach the screen titled "Here's how your California income and adjustments compare" or "Wages and Income."
    3. Look for the line for Capital Gains and Losses and click Start or Update.
    4. Look for: "Do you have any California capital loss carryovers from [Prior Year]?" * Note: If you don't see this immediately, continue through the Capital Gains section until you reach the "California Capital Loss Carryover" screen.
    5. Enter the Carryover Amounts: You will typically see two fields:
    6. Prior year carryover as if a CA resident for all prior years: This usually matches your Federal carryover.
    7. Prior year carryover as if a CA non-resident for all prior years: This is the amount that will flow to Form 540NR, Part 2, Section A, line 7a, Column E.

    If the interview screens aren't working, you can use Forms Mode to edit the worksheet directly:

    1. Click the Forms icon (top right).
    2. In the left sidebar, find the CA Sch D (540NR) Wks.
    3. Look for the Capital Loss Carryover Worksheet.
    4. Enter your carryover amount in the Nonresident column of the worksheet. This will automatically populate Line 7a, Column E of the 540NR.
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    nomad707Author
    Level 2
    April 15, 2026

    @AmyC Thank you for your response. I am using Turbo Tax Online, and I don't see Forms mode anywhere. 

    I have the two fields populated like this:

    1. Prior year carryover as if a CA resident for all prior years: 13k
    2. Prior year carryover as if a CA non-resident for all prior years: 13k

    However, when I printed my return to review before submitting it, Form 540NR, Part 2, Section A, line 7a, Column E showed 0.

    Shouldn't Column E show -3000, which means that would be deduction from my CA portion of income? Column A and D show -3000, but not Column E.

    nomad707Author
    Level 2
    April 15, 2026

    @AmyC I found a similar issue to mine here: https://ttlc.intuit.com/community/state-taxes/discussion/califorinia-non-resident-capital-gains-not-handled-correctly/00/2215058. They are saying there was even a bug in the system that prevented populated Column E.

    Could you please confirm that my Column E should not be 0 given I have CA capital losses carried forward from 2024?