Capital loss carryback

[bradyw]

I have not filed my taxes for 20, 21, or 22.  I plan to file all three years at one time.  In 20 and 21 I have net capital gains and in 22 i have a net capital loss that is more than the gain from 21, but less than 20 and 21 combined.  What is the right way to handle the carryback? Will I need to file 20 and 21 as they would have been originally, then amend them?

[Anonymous_]

See https://www.law.cornell.edu/uscode/text/26/1212

Only corporations are allowed to carryback net capital losses, not individuals.

[Critter-3]

All 3 tax years must be completed separately using the tax program for each tax year and all of them must be mailed in.  You cannot use the online TT program which is only for 2023 at this time. 

If you need to prepare a return for 2020, 2021 or 2022 you can purchase and download desktop software to do it, then print, sign,  and mail the return(s)

https://turbotax.intuit.com/personal-taxes/past-years-products/

You may also want to explore purchasing the software from various retailers such as Amazon, Costco, Best Buy, Walmart, Sam’s, etc.

Remember to prepare your state return as well—if you live in a state that has a state income tax.

https://ttlc.intuit.com/community/state-taxes/help/how-do-i-contact-my-state-department-of-revenue/0... 

When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s.  Use a mailing service that will track it, such as UPS or certified mail so you will know the IRS/state received the return.

Federal and state returns must be in separate envelopes and they are mailed to different addresses.  Read the mailing instructions that print with your tax return carefully so you mail them to the right addresses.

Note:  The desktop software you need to prepare the prior year return must be installed/downloaded to a full PC or Mac.  It cannot be used on a mobile device.

If you are getting a refund, there is not a penalty for filing past the deadline.  If you owe taxes, the interest/penalties will be calculated by the IRS based on how much you owe and when they receive your return and payment. The IRS will bill you for this; it will not be calculated by TurboTax.

[rjs]

A capital loss cannot be carried back to earlier years. The capital loss on your 2022 tax return will be carried forward to 2023 and future years until it is used up. TurboTax will do this automatically for you. You have no choice about how the capital loss is handled. TurboTax will treat it as required by the tax law, and there is only one way to do it.

When you mail tax returns for multiple years, mail each one in a separate envelope. Do not put more than one tax return in the same envelope.

[bradyw]

I should have mentioned the loss is from section 1256 contracts, which I think an individual can carryback.  However, the previous capital gains weren't from section 1256 and in reading from the link you shared it looks like they may not qualify unless the gains were also section 1256. Thanks for your help!

[SteamTrain]

And when you do mail them in, for the Federal forms, Use the addresses provided here:

Where to File Paper Tax Returns With or Without a Payment | Internal Revenue Service (irs.gov)

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At least one mail-in site has changed, and the software may not be up-to-date with all the recent IRS address changes.

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For your state forms, double check the mail-in addresses at your state's tax website (if your state has an income tax).

[NCperson]

@bradyw simple answer to your question: there is no carryback allowed.