ST Capital Gains Loss Carryover

[Anonymous]

My 2020 Taxes had a $28,154 loss on line 8 of the Capital Loss Carryforward worksheet, but no value on line 9 and zeros on the remaining lines. As a result, in 2021 I didn't have any losses carried forward.

Now, while doing my 2022 taxes the question comes up again and I have a large gain and nothing to offset it, yet I only used $3K of the loss in 2020. 

Why didn't my loss automatically get carried forward in 2020 on my return? I use TurboTax Home & Business as I do consulting work.

At this point, do I need to go back and amend prior year returns in order to capture things properly? Has this always been an issue with Turbo Tax?

Thank you for any help.

[rjs]

What do you mean by "as a result"? As a result of what? The amounts you listed on the 2020 Capital Loss Carryforward Worksheet would not result in the loss not carrying over to 2021.

This has not been an issue with TurboTax. I did a test, with the same amounts that you gave on the 2020 Capital Loss Carryforward Worksheet, and the loss carried over to 2021. The problem is probably in 2021, not 2020.

Are you sure that the loss didn't carry forward to 2021? What is on line 6 of your 2021 Schedule D? If line 6 is -25,154 the loss did carry over to 2021. If line 6 is blank, the most likely cause is that when you started your 2021 tax return you did not transfer information from your 2020 return, or you transferred from the wrong 2020 file.

To correct the carryover, yes, you will have to amend your 2021 tax return before you start your 2022 tax return. When you start your 2022 return, make sure you transfer information from the amended 2021 return, not the original 2021 return. However, you do not have to wait for the IRS to finish processing your 2021 amended return before you file your 2022 return.

[Anonymous]

There is no value in line 6 of Schedule D on my 2021 return. I used the same program, TT H&B in both 2020 and 2021. I have been using TT since 2000, and I use the new program to transfer in the previous program data every year.

[GeorgeM777]

On Line 7 of the 2021 Form 1040 is where you will see the capital loss, if any.  Can you check your 2021 Form 1040 and advise if you see a $3,000 loss on line 7.  If you had no capital gains in tax year 2021, your capital losses from tax year 2020 would have at least offset $3,000 of ordinary income ($1,500 if married filing separately) in 2021.  If the capital loss from 2020 did not carryover, then yes, you need to amend your 2021 tax return to include your carryover loss.

What amount, if any, is on line 16 of your 2021 Schedule D?  Line 16 should have your combined short term/long term capital losses. 

For tax year 2022, you can adjust your carryover losses in TurboTax Home & Business, assuming that number is not accurate.  From the Personal Income tab, scroll down to Investment Income and select Capital Loss Carryover.  Enter your information.  

@52PuffDaddy