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

[Topsail Pablo]

I just completed my 2023 federal tax return using the desktop version of Turbotax Premier.  I also used Turbotax desktop in 2021 and 2022 and information from those returns was automatically imported into the 2023 return (except, apparently, as described below).

In reviewing the forms list, I noted that the Capital Loss Carryover Smart Worksheet (relating to "conversion" errors) had a large exclamation mark beside it indicating errors.  The indicated errors (red boxes) were the absence of values in the following two lines on page 2 of the Worksheet:

Value from 2021 Schedule D for AMT, line 7.........._________

Value from 2021 Schedule D for AMT, line 15.........._________

Immediately above these lines is the following question:  "Is this return impacted by inaccurate TY21->TY22 conversion?"  The "Yes" box was automatically checked by the Turbotax program and the program further below had automatically filled in many numbers under columns entitled "Original TY21" and "Original TY22." The "corrected "amounts for several  of these differed by several thousands of dollars from the "original" amounts.  I assume that the Turbotax programs for 2021 and/or 2022 generated erroneous values for capital loss carryovers (query:  only for alternative minimum tax purposes or for both AMT and regular tax?) and that the purpose of this worksheet is to correct those errors for 2023.

Going back to the "missing values" that prompted the error message for this form, my 2021 return did not have a separate "Schedule D for AMT."  I did not pay AMT in 2021 (or for 2022) because the regular tax was greater.  

My questions are:

What numbers I should input into the two blanks described above?  Specifically, is the program asking me to  input  the numbers from lines 7 and 15, respectively, from the Schedule D for the regular income tax, since I did not prepare (and the Turbotax program did not generate) a separate Schedule D for AMT? And why didn't the program automatically input these values in light of the fact that it was able to automatically input many other values from the 2021 and 2022 worksheets and forms?

Finally, I am curious about the exact nature of the Turbotax program error that prompted the need for this "adjustment" worksheet and whether it could have impacted my previously filed returns for 2021 and 2022.  Full disclosure from Intuit of what transpired would be appreciated.

[clueless001]

I'm getting the same issue/exception using the web based product for 2023 return.  Have you received any responses or discovered anything more. I didn't file AMT schedule D however my return generated one that was saved with my worksheets. I found the amounts they were looking for on my 2021 tax returns/worksheets and entered it where prompted on the 2023 return. I ran review again and it no longer kicked out as an error. My concern is that will negatively impact my Schedule D and carryovers when I file 2023 return.

[Topsail Pablo]

So far I have received no responses other than yours.  I did post this same question to the Turbotax experts on the Intuit website, also with no response.

I looked at my full 2020, 2021 and 2022 Turbotax "files and worksheets for your records" and do not see a separate Schedule D for AMT.  I do, however, see separately-stated capital loss carryover amounts for regular tax and AMT.  From what I can tell, the Turbotax programs for 2020 and 2021 correctly computed capital loss carryforwards to the succeeding years, which on my facts were exactly the same amounts.  (My understanding is that unless one has incentive stock option exercises or other uncommon circumstances, loss carryovers for regular tax and AMT will be the same.)  The 2021 program correctly imported the carryover from 2020.  However, the 2022 Turbotax program did not properly import the AMT carryforward from 2021 to 2022.  In my situation this amount was increased by several thousand dollars.

I haven't completely figured out what is going on in the 2023 Capital Loss Carryover Worksheet, but I am troubled by the fact that, with the two values referred to in my original post remaining blank, the line 13 "Long-term capital loss carryover for 2023" on page 1 of the Worksheet is different for regular tax and AMT.  As I stated above, I don't have circumstances that should cause a difference between regular tax and AMT capital losses or loss carryovers.  

[clueless001]

Thanks for responding. One of the entries was a LT carryover loss that was “0”. It was blank on the worksheet so I corrected by adding it in. The other flagged entry was for ST carryover loss that was blank. I looked at the firm I had in my tax files and added the number it should be. 
I’m nit using the desktop version so I can’t tel what impact it will have till I pay to file, but then I don’t think I can change it. Trying to avoid an amended return.

i may clear the 2023 return and start over to see if anything changes with respect to flagging those 2 lines.

keep in touch please.

[Topsail Pablo]

Thanks for your response. What I have determined is:

1)  The 2022 Turbotax program contained programming errors.  It inserted an incorrect value for the AMT capital loss carryforward from 2021 to 2022, and it produced an incorrect value for the AMT capital loss carryforward from 2022 to 2023; and

2) regarding the blanks referred to in my original post (which triggered an error message for the Schedule D Capital Loss Carryover Worksheet), when I insert the values from the 2021 Schedule D for regular tax purposes (again, no separate AMT Schedule D for that year was prepared by the program or by me), then line 13 of the Worksheet reflects the same (correct) value for the Long-term capital loss carryover from 2022 to 2023 for both regular tax and AMT purposes.

I reviewed the production, use and carryforward of capital losses from my 2020 through 2023 returns and this value appears to be accurate.

[Topsail Pablo]

FYI, I just received a response from one of the Turbotax Employee Tax Experts.  She asked me to send a "diagnostic tax file" (my return without identifying information).  I declined but provided her with our dialogue on the issues and suggested that they (1) explain what went wrong with the 2022 program's processing of capital losses for AMT purposes and (2) change the 2023 program so that the Schedule D worksheet automatically imports the correct numbers from prior years rather than requiring the user to figure out what values to insert.  If Turbotax produced a separate AMT Schedule D, it should use those numbers; if not, it should use the regular tax numbers.  As I found out, leaving these numbers blank produces an incorrect AMT capital loss carryover number.

[clueless001]

Thanks for the update. I’ve learned there are different tier levels of assistance and that the initial contact is often insufficient. Hopefully they’ll continue lookining into this. You are definitely asking the right questions. Please keep me updated. 
thank you!

[larrsz]

Add me to the list using online version for 2023. I have no idea what information to enter into these boxes although they seem to be "required" before I can finish the review and file.

[clueless001]

If you saved worksheets from prior returns you can reference the worksheet worksheets that have what they request for numbers, even if it didn’t actually involved forms that were filed. Otherwise, I have no idea. There was one other customer that described their scenario with this issue.

[sbrobin]

Same exact problem. From what I can determine, they want  the information from the 2022 CLCO worksheet, and not the referenced values in the actual 2021 return. For some reason they believe the worksheet contained incorrect values. Turbotax is showing "corrected" values for me for:

2022 Capital Loss Carryover Worksheet Line 10

2022 Capital Loss Carryover Worksheet Line 12

but I have no idea why. I do not pay AMT. My regular tax is sufficient.

[Topsail Pablo]

As I stated in one of my previous posts, my Turbotax 2021 desktop program did not generate a Schedule D specifically for AMT purposes, although it did generate an AMT capital loss carryover figure.  I simply used the 2021 Schedule D lines 7 and 15 values for regular tax purposes to fill in the blanks in 2023 "loss carryover adjustment smart worksheet."  (It wasn't quite as "smart" as advertised, since it didn't simply import the information from prior years' returns, which were also prepared using Turbotax.)  Inserting these values (assuming your AMT capital losses values are the same as the regular tax values--typically true) will result in correct AMT capital loss carryovers to 2023.

This problem apparently only affects early filers  in 2022 with capital loss carryover.  If you dig down somewhere within the "smart" worksheet (can't recall exactly where, but I remember right-clicking on one of the values to get more information), you'll get the following explanation (which I didn't discover until after I made the earlier posts) for the "conversion" worksheet:

There was an issue fixed in early 2023 for Alternative Minimum Tax Capital Loss Carryover from 2021 to 2022. Some of 2022 returns (filed before March 1, 2023) may have brought over inaccurate information about the 2021 AMT capital loss carryover. Based on information transferred from your 2022 return, your return has been determined that it might have been potentially impacted. Although this had no impact on your 2022 tax return, we recommend double-checking your 2021 return for this information so we can get the right amount going forward.

I filed my 2022 return in February of 2022.

[Topsail Pablo]

I meant to say that I filed my 2022 return in February of 2023.

[kindlib]

So glad you started this thread.   I filed early and also got this perplexing scenario.  I WAS subject to AMT back in '21 and '22.  I crawled through my old returns and entered the strange, arcane information they requested.   And it did, in fact, seem to change some of the numbers carried through -- probably to my eventual benefit although it is all a bit cryptic.   

[larrsz]

I finally got in touch with a TurboTax "tax expert" and they said to use the numbers from my actual return, schedule D, lines 7 and 15. It did fix the error and let me go on, although I believe it raised my tax due by just a bit. I really wish I had access to the AMT sheets to verify but I do not, since I did not file/pay AMT and TT did not generate that form in my package. 

[Dukes Dad]

I also just received the same error message.  Tearing the hair out trying to figure out what tripped this error message as I didn't file AMT in 2021 or 2022.

I'm going to go back and see if I can find the data from Schedule D Lines 7 & 15 from 2021 etc.

For fun, I unchecked the "Yes" box and checked the "NO' box.

The warning error disappeared immediately.  That may be the simplest & easiest answer to the SNAFU.