Why is TurboTax Carrying this loss to 2022, when it was incurred in 2021?

[msdugan]

Hi, preparing daughter's first return. She had a 1099-NEC for about $800, but also the below capital loss on investments. Federal tax due is approx. $117 as shown. Can't understand why TT is automatically carrying the loss to 2022 when it should be for 2021. Any guidance would be appreciated. Thanks. 

[Bsch4477]

What does it read if you click capital loss used in 2021 “what’s this”?

[VolvoGirl]

I would guess because her income is low and not taxable the loss is not needed for 2021 so she can carry it over to 2022.    The $117 tax due is probably all for self employment tax, not regular income tax.

[msdugan]

[AmeliesUncle]

As VolvoGirl said, after applying the Standard Deduction, it seems that your daughter does not have any "taxable income".  So that means she is not paying any INCOME tax, and the capital loss gets to be carried to next year.  That is good news.

And as VolvoGirl also said, the tax that she owes is Self Employment Tax (Social Security and Medicare taxes), not income tax.