Turbotax 2023 Capital Loss Carryover Worksheet "TY-21->TY22 conversion"

[sbrobin]

Please let me know what you do or if you get a response from Turbotax. I might end up unchecking that box as well. I didn't have AMT in either year either.  I have the data from my Schedule D Lines 7 & 15 from 2021 but am hesitant to enter that as Turbotax is saying that info might have been incorrect.

[Topsail Pablo]

I have yet to receive any response from Turbotax or its "experts" on this issue.

As I explained in a previous post, I understand that, prior to a correction made through an update in March of 2023, the Turbotax program for 2022 inserted erroneous values for capital losses for AMT purposes.  If one filed prior to the correction,  my understanding it that one must insert the requested values in the 2023 capital loss carryover worksheet to obtain correct AMT capital loss carryovers for 2023 and 2024.  Leaving them blank produces incorrect carryovers.  If someone who filed their 2022 return before the March update in the program unchecks the "yes" box on the "conversion" worksheet and checks "no," I strongly suspect that this will result in incorrect AMT capital loss carryovers.  Checking "no" may give a proper carryover amount for someone who filed after the program correction, but I'm guessing that, if Turbotax initially checked the "yes" box as it did in my case (I was an early filer of the 2022 return), it did so because of your  early filing date.

Assuming one doesn't have incentive stock option exercises or other uncommon situations that create differences between regular tax and AMT capital loss carryovers, my understanding is that the carryover amounts will be the same for regular tax and AMT.  If you don't have one of these uncommon situations, I would confirm that the Turbotax program shows amounts for capital loss carryover for years 2021, 2022, and 2023 for AMT purposes that are the same as the amounts it shows for regular tax purposes for those respective years, and that the carryforward amounts to 2024 are the same for both purposes.

Also, as I mentioned in a previous post, inserting the amounts from the specified lines (7 and 15) from regular tax Schedule D of the 2021 return (if Turbotax didn't generate a separate Schedule D for AMT purposes, as it did not in my case) should result in the correct AMT capital loss carryover amount for 2023 and the carryforward to 2024.  

I recently noticed that, for 2024, the Turbotax program did create a separate Schedule D for AMT purposes.  It was located at the very bottom of my list of forms.

Good luck. 

[neil95]

Think I’m running in to the same issue here. At first I was asked to enter Value from 2021 Schedule D for AMT, line 15. I entered the value. I did not owe AMT so I entered the value on line 15 of my regular Schedule D. Now it’s asking me Value from 2021 Form 6251, line 4, alternative minimum taxable income. I do not know what to enter here since I did not file a Form 6251.

[rart942]

Do I understand correctly that the solution is to enter the values from 2021 schedule D lines 7 and 15 (Net short-term and Long-term gain or loss)?

[bobrobert]

Thanks for information.  Please keep me updated. Might just follow up later suggestion to just uncheck yes. Your thoughts?

[Topsail Pablo]

Yes, provided your circumstances do not give rise to a difference in capital loss carryovers for AMT purposes and those for regular tax purposes.

[karenf5]

Nice idea, and glad it worked for you.  Unfortunately for me, the worksheet did not allow me to change from "Yes" to "No".

[ericgbirds]

What I started doing last year is to force the AMT forms into my return even if I don't own AMT. It's just for cases like this which I have run into before. I use the Mac desktop Premier version of Turbotax.

I go to Forms view and manually add Form 6251. This adds a bunch of ancillary worksheets as well. Scroll to the bottom of Form 6251 and check the box "Check to file Form 6251, even if not required." This ensures it will be in my printed form set for subsequent years.

-Eric

[Topsail Pablo]

I'm not sure this would have prevented the problem referenced in my original post.  When preparing my 2021 and 2022 tax returns, I in fact went through step-by-step for AMT and was informed I didn't owe AMT for those years.  Although Turbotax prepare a Form 6251 for each of those years, no separate Schedule D for AMT was generated, presumably because I answered I did not have any circumstances requiring adjustment to capital losses for AMT purposes.  

For the 2023 return, I again followed the step-by-step for AMT, indicating I had no ISO's or other special circumstances affecting capital losses, but the Turbotax program did prepare a separate AMT Schedule D.  In my list of Federal forms it's the last item in the list.

[nitingupta]

I ran into the same problem as you have described in detail in this thread.

I have been using desktop versions of TurboTax since more than a decade. Like you I filed my 2022 tax returns in Feb. 2023 before this supposed bug was fixed by Intuit in early March.

I do not have a Sch. D for AMT form for 2021 from which the software prompts to manually populate line 7 and line 15 to make this correction.

If TurboTax was smart enough to figure out this needs correction (YES is checked automatically) it is ridiculous that Intuit hasn't provided a software fix to populate the values automatically. The whole point of paying for software is to not worry about doing these things manually.

So far looking at the responses, I do not feel confident of manually fiddling with these values and carrying forward the error in 2024 & beyond.

Hope Intuit comes up with a fix soon.

[bobrobert]

I am hoping Turbo Tax will fix this problem.  If they do not, I have decided to uncheck the Yes box which does away with the error messages. I have checked my carryover amounts from taxes 2021 to 2022 and from 2022 to 2023 and they are correct.   When I unchecked the Yes box, it did not chance any of the amounts nor did it have any effect on my taxes, and it did generate the correct information for carryover to 2024.  I did not have any ATM tax to pay in 2021 and 2022 so I am just assuming that it doesn't affect me.  I hope that helps. 

[nitingupta]

Ok here's what I did to manually force TurboTax desktop to generate the 2021 Schedule D for AMT form:

• Open the 2021 TurboTax - it will do all the software updates first.
• Open your 2021 tax file.
• Click on the Forms icon on top right - it toggles between Forms and Step-by-Step mode.
• On the top left under TurboTax logo, you would now see an Open Form icon, click that.
• There'll be a search box - I typed <Schedule D>. The search results will show the Schedule D AMT form.
• Click on it and then click Open Form.
• The software should automatically populate that form from which lines 7 and 15 are needed for making the correction for 2023.
• Click on Print and select Specific Forms to save this form only.

I made the corrections and the Smart Check shows no more errors.

[p3nguin53]

I filed my 2022 return on 4-12-2023 and still encountered this problem.  I think that's because I started my return in February and pulled in the prior year's numbers before the bug was fixed in early March.  So it is not just early filers that are affected.

I compared worksheets and found that the numbers on the 2021 return Capital Loss Carryforward Worksheet (has correct numbers) do not match the numbers on the 2022 return Capital Loss Carryover Worksheet (has incorrect numbers).

TurboTax is asking for the numbers from the 2021 Schedule D for AMT lines 7 and 15.  If you don't have that form you can also get the correct numbers from the 2021 return Capital Loss Carryforward (not Carryover) Worksheet under the AMT column on lines 5 and 9.  Take the numbers from the AMT column and make sure you enter them as negative numbers.

[chilipena1040]

Thank you so much for posting this issue, I too ran into the exact scenario and have spent too much time trying to figure out where to get the non-existent schedule info that Turbotax was insisting I fill in.  I am going to hold up filing to see if a software fix is available in the near term.   If all else fails I think I'm going with the camp that unchecks the yes box.

Thanks again.

[nitingupta]

@chilipena1040 I have posted the way to generate the Schedule D AMT form for 2021. That takes all guesswork out of the equation.