Capital Loss Carryover Is Not Offsetting Federal Tax Due

[Leofus1]

I had a Capital Gain of $70,000 in 2023, but also had a Capital Loss Carryover from 2022 far in excess of this amount.  Turbo Tax Deluxe on my Windows computer has correctly reduced the Carryover amount to be applied to 2024 in the right amount, but it also shows a $2,500 increase in its running total of Federal Taxes Due.  The Capital Loss Carryover should completely absorb the Capital Gain and there should be no impact on my tax liability for the year.  Does anyone have an idea why Turbo Tax is making this error?

[Mike9241]

if your capital loss carryover exceeds current year capital gains then up to $3000 can be subtracted against other income 

we have no access to your return. there are many possible reasons.

perhaps the best way to see what's going on is to save a PDF of the return as it is now and then remove the capital gain data and save a pdf of this return. then you can compare them line for line what's going on.

OR save a PDF with all capital gain/loss carryforward info entered. the remove the CLCO and save a PDF, compare the two to see what changed.

Then if you have questions you can post them in this thread so we understand what the issue is and what you did. 

[Leofus1]

Mike, 

Thank you for your quick response.  I followed your advice and discovered the problem was a result of incorrect calculations by TT with my Cap. Loss Carryover amounts.  After a little research, this seams to be/have been an issue with TT in previous years, as well.

Again, thank you for your help.

[NatureLover1]

Hello,

I  am running into the same issue with TT not able to calculate Capital Loss carryover correctly and it is not offsetting my gain for this year.  Could you please let me know what you did to fix this issue please.  Thank you in advance.

I am using Online TT Premier.

[MonikaK1]

If you transferred last year's TurboTax return over and it included the carryover for this year, the program may enter it for you. Otherwise, follow these instructions:

1. Sign in to your TurboTax account and open your return by selecting Continue or Pick up where you left off in the progress tracker
2. In the search bar, search for capital loss carryover, and then select the Jump to link in the search results
3. Select Yes on the screen Did you have investment losses you couldn't claim in 2023?*
4. Enter the info about your capital loss on the following screens

*In the alternative, you may see a screen "Here's what we have" showing capital loss amounts already entered in the program. Click Edit if the carryover doesn't appear (you see only zeroes). Enter the information about your capital loss for 2023 following the screen prompts.

If you are using TurboTax Desktop, you can go to the Investment Income section under Wages & Income and click Start or Update next to Capital Loss Carryover and follow the step by step instructions.

In TurboTax Online, under Income, start or revisit Capital Loss Carryover under Investments and Savings in the Income section.

See also this help article.