Can I delay taking a carryover loss on my MA State return until after a non-refundable credit runs out in 5 years?

crash345u · Mar 4, 2025 5:02:56 PM

I have a $3011 carryover loss from 2023 flowing into my 2024 return. $2000 of the loss can be used in 2024. I also have a $3130 non-refundable septic system credit which I just started taking this year. My tax on 5% income is $3130 which is exactly equal to the credit. Am I allowed to defer the carryover loss until the credit runs out in 5 years since I am essentially "waisting" it when I could be getting more from the credit? The credit is worth up to $4,000 per year until it reaches $18,000 which is why it takes 5 years to get the full credit. I am qualified for the full $4K if there is sufficient taxable income. I dont expect to be living in MA that many years which adds a wrinkle to the question. I assume this is independent of my Federal Return where I would like to use carryover loss.

I have a $3011 carryover loss from 2023 flowing into my 2024 return. $2000 of the loss can be used in 2024. I also have a $3130 non-refundable septic system credit which I just started taking this year. My tax on 5% income is $3130 which is exactly equal to the credit. Am I allowed to defer the carryover loss until the credit runs out in 5 years since I am essentially "waisting" it when I could be getting more from the credit?

The credit is worth up to $4,000 per year until it reaches $18,000 which is why it takes 5 years to get the full credit. I am qualified for the full $4K if there is sufficient taxable income.

I dont expect to be living in MA that many years which adds a wrinkle to the question. I assume this is independent of my Federal Return where I would like to use carryover loss.