MA tax return and capital loss caryyover

RKPJ · ‎March 26, 2021

I have been using Turbotax for several years and never bothered to cross check the figures in Federal return and MA state return. I have had significant capital losses 10 years ago. Turbotax automatically carries it over year after year. However, I just noticed that it never included these losses in MA state tax. This year I have some decent capital gains which were offset by the carryover losses. When I noticed that I am paying quite a bit of MA tax I cross checked the figures. It is because of the capital gains this year and it is not showing the carryover losses. It looks like in the past several years Turbotax has been doing this and I may have been paying more MA tax than I should. How do I rectify this?

JotikaT2 · ‎March 30, 2021

The only way to correct it is to file amended state returns. Please see the link below for guidance.

Amending a prior year state tax return

Deadline for filing an amended return

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RKPJ · ‎March 30, 2021

Thanks. I am also wondering how to make it offset the capital gains in MA tax return with carryover losses from the past. Turbotax is doing the offset for federal tax but not MA tax. It's adding the 100% of the this year's capital gain (due to sale of mutual funds) to the income in the MA tax return.