Does anyone know if New Jersey allows capital loss carryback? Didn't find it mentioned anywhere.

[isabeljsh]

People can claim a capital loss (section 1256 contracts) carryback for Federal, but does New Jersey allow the loss carryback? Thanks.

[DianeW777]

No. New Jersey (NJ) does not allow any carryback for capital losses.  The following information describes their rules for income tax and losses.

• Reporting Losses. If you have a net loss in any category of income, remember the following:

1. You cannot report a loss on your NJ-1040 (e.g., in parentheses or as a negative number);
2. You can net losses with gains in the same category of income. For example, you can subtract gambling losses from gambling winnings during the tax year;
3. You cannot apply a net loss in one category of income against income or gains in a different category on your NJ-1040. For example, you cannot subtract gambling losses from your wages;
4. If you have a net loss in any income category, make no entry on that line of your NJ-1040. Do not enter zero. Do not enter the amount of the loss in parentheses or as a negative number;
5. No carryback or carryover of losses is allowed when reporting income on your NJ-1040