I have capital losses of $18,194 but my carry over was calculated as $11,319. I thought the max loss was $3k and the rest could be carried over? Are there other things that are deducted to explain the difference? Is there a % limit to the carry over?

[ErnieS0]

Did you have any capital gains? Or capital gain distributions are part of your dividends? Both of those could reduce your capital loss carryover.

Your Form 1040 should show a $3,000 loss on line 7.

You can see the computation of your capital loss carryover on Schedule D and the carryover on the Capital Loss Carryforward Worksheet for 2021.

[fanfare]

It simple. if you had gains during the year, you won't pay tax until the gain uses up your carryforward losses.

if you still have carryforward losses, the $3,000 max loss deduction uses up another $3,000.

[VolvoGirl · Accepted solution]

Are they all current year losses or did you have a carryover loss from 2019?

The current year carryover loss from the prior year is on schedule D line 6 & 14.

On the income page The 2020 column shows the carryover to 2021 (not your current loss for 2020).  Schedule D doesn't actually show the carryover amount. To find your  Capital Loss Carryover amount  you need to look at your  return schedule D page 2.  Line 16 will be your total loss and line 21 should be a max loss of 3,000.  The difference between line 16 and 21 is the carryover loss for next year.

There is also a Carryover Worksheet showing the carryover from the prior year and the current amounts.  Then there is also the Capital Loss Carry Forward worksheet showing the amount transferring over to next year.

In the Online version you have to save your return with all the worksheet as a pdf file to your computer to see the Capital Loss Carry Over and Carry Forward worksheets.

In the Desktop program you can go to Forms and find it in the list in the left column.

[jtmpaul1]

Thank you for the very detailed answer.