carryover from 2022 does not show on line 16 from last year's return but it should be there.

[Jimmy66]

Can I use it on my 2023 taxes ?

[DianeW777]

Yes, you can use a loss carry forward from 2022 to 2023.  The type of loss will determine where it is reported on your 2023 tax return.  If you are referring to a capital loss carryover, it would be reported on Schedule D, if you are referring to a net operating loss (NOL) carryover, it would be reported on Schedule 1, then carried to your 1040.

• How do I report my capital loss carryover?

For the NOL, first you must calculate your carryover using IRS Publication 536.  The worksheet is on page 12. 

Once you determine the correct amount, you can include the carryover in your 2020 tax return by following the steps above, placed here for your convenience.

1. Do a Search (upper right) > Type net operating loss > Press enter > Click on the Jump to result
2. Enter your NOL carryforward on the screen that appears

[SteamTrain]

Line 16 of Which Form?

Some Credits, and a very few deductions, are allowed to carry over...some do not.

[Jimmy66]

I'm sorry I forgot to mention this is regarding an energy credit. On my 2022 taxes, there is no entry on line 16 of form 5695. There should have been a carryover and that is what I was wondering - can I use that carryover? Thanks.

[SteamTrain]

If there was no carryover on that line....then perhaps there was no carryover allowed for whatever reason.

Like, did you even attempt to enter your energy costs/credits for 2022?

You might have to go thru your 2022 taxes again by amending a second copy of it (don't touch the original), to see if it changes anything.  IF it does, that should result in a larger refund, or if it doesn't  give you a greater refund because you had a zero tax liability last year, then line 16 would be filled in with the proper amount that carries over.   You could then mail in your amended federal forms for 2022, and claim the carryover this year (2023)....but you have to attempt to use it for 2002 taxes first.

But there's no way we can guess with any certainty, the reason why there was no carryover for your 2022 file, as we can't see what your entire situation was last year.

At least that's my take on your situation.

[Jimmy66]

Thanks. I looked at my 2022 taxes and found that I was entitled to say $700 total for energy improvements but the max is $500, so even though the $200 amount is not on form 5695, line 16, wouldn't $200 transfer to 2023?

[SteamTrain]

Nope...from everything I've read, the max is just the $500. No carryover.

If it's changed for 2023, it only applies to new improvements. going forward.

In fact, the IRS is not allowing certain credits to carry over If not used), but is allowing others:

__________________________

"Q4. May a taxpayer carry forward unused credits to another tax year? (added December 22, 2022)
A4. The rules vary by credit.

• Under the Energy Efficient Home Improvement Credit: a taxpayer may not carry the credit forward. Thus, if a taxpayer does not have sufficient tax liability to claim all or a portion of the credit in the year in which the related property for which the qualifying expenditure is placed in service, the unused amount of the credit may never be claimed.

• Under the Residential Clean Energy Property Credit: a taxpayer may carry forward the unused amount of the credit to reduce tax liability in future tax years."

[Jimmy66]

Thanks for the reply. So the 2nd line here looks like I can carry that: Under the Residential Clean Energy Property Credit: a taxpayer may carry forward the unused amount of the credit to reduce tax liability in future tax years." 

[SteamTrain]

Carry-forward will only be allowed for 2023 installations ..IF.....the installation actually falls under that particular credit.

______

AND...what it applies to is for 2023, going forward are these specified items:

"For the Residential Clean Energy Property Credit, the following requirements apply:

o solar water heating property expenditures, solar electric property expenditure, small wind energy property expenditures, geothermal heat pump property expenditures, and battery storage technology expenditures: the home must be located in the United States and used as a residence by the taxpayer (includes renters); and
o fuel cell property expenditures: the home must be located in the United States and used as a principal residence by the taxpayer (includes renters)."

i.e. not doors, insulation, windows  etc etc..

[Jimmy66]

Thanks. I thought for sure I would be able to carry that over. It's also very disappointing that we installed an expensive central air system in late 2022 and were not able to use that as an energy credit on our 2023 taxes. It would have taken a nice chunk out of our tax liability this year.