i lost 7k on stocks and i got only 1000$ From capital loss where the other 2k from 3000 limit?

[Sa1wan]

i lost 7k on stocks and i got only 1000$ From capital loss where the other 2k from 3000 limit?

[VolvoGirl]

Did you sell these in 2019 or is this a carryover from 2018?  If it is from 2018 maybe you had some 2019 gains that used some of it up.

And on the income page The 2019 column shows the carryover to 2020 (not your current loss for 2019).  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.

[Sa1wan]

here is a screenshot of my return and that return include only 1k from my capital loss 

It say carryover 4k for next year but I just get only 1k. where is the other 2k from my loss? 

[NCperson]

not sure where you see 2k or the 1k..$7629 minus $4629 is $3,000.

you had a capital loss of $7,000.

you are able to use $3,000 of that against ordinary losses

the remaining $4,000 is carried over to next year where you can use it against other capital gains. if you do not use it up, then another $3,000 can go against next year's ordinary losses.

[Sa1wan]

I know

I just removed the loss from stocks

My tax refund went offset only 1k

That means i got only 1k from my 3k limit of capital loss

Is that glitch in software or something else?

[VolvoGirl]

It doesn't work that way.  You don't get losses back in your refund.  It only reduces your total income so you get taxed on a lower amount.  Then it only reduces your tax by a percentage.  Like if you are in the 30% tax bracket a 3,000 deduction will reduce the tax by 1,000.

 And having less income can reduce some credits you get.  

[NCperson]

@VolvoGirl  is explaining the difference between a 'deduction' and a 'credit'.    

The impact of a deduction depends on your tax rate, so a $3000 deduction at 15% is worth $450 to you

But a CREDIT is a dollar for dollar reduction, so a $3000 credit is worth $3000 to you

the $3000 capital loss is a DEDUCTION, not a credit. 

[Sa1wan]

That make sense

Can you tell me how i can find my deduction?

And can be increased by other factors ?