Capital loss not increasing refund

[jarhodes]

I have net capital loss in my brokerage account this year, of greater than $3,000. However, whenever I import my 1099-B from my broker, my refund does not change. Shouldn't this 3k negate 3k of my taxable income and increase my refund?

[ThomasM125]

The losses will reduce your gains. However, net capital gains are not taxable if you are in a lower income tax bracket (single filers below $40,125, joint filers below $81,050.) So, it may be that your capital gains are not being taxed before you enter the losses, so they have no affect on your net tax.

[jarhodes]

Thanks for the info. I don't think it applies to my situation however. This was my only brokerage account so I did not have any capital gains. My understanding is that it should go against my taxable income that case. Also, I am not in a low tax bracket. Any other reasons you can think of why the capital loss wouldn't increase my refund?

[VolvoGirl]

Maybe you are already getting back all you can and more deductions won't increase it.  Or you still owe for something else.  Also after you reduce your income to zero there is no more refund to get back but you still may owe for other things like self employment tax or the 10% early withdrawal penalty from 401k or IRA accounts.