Capital Loss Carryforward

[mikem10]

I earned $2,700 in w-2 wages in 2021. I am a student and claimed as a dependent by my parents so my standard deduction is $3,061.  I also had $200 in short term capital losses.  This reduces my AGI to $2,500 but I dont really need to use it 2021 since the standard deduction more than offsets my wages.  According to Worksheet 4-1 in Pub 550, it seems like I should be able to carryforward the $200 loss but Turbotax is including it on 1040 line 7.  Is there a workaround?

[ColeenD3]

You have to use the loss this year or lose it completely. You can't skip a year or save it for a later year.

Capital Loss

[Mike9241]

the way the 1040 form works is that the capital loss from schedule D line 21 flows to line 7. however, when computing the actual CLCO first the capital loss is added back and then the standard deduction is applied. since it wipes out your MAGI, you retain the 200 capital loss to use in 2021

[VolvoGirl · Accepted solution]

If you have a negative AGI or negative taxable income it will show up on 1040  BUT it won't reduce the carryover to the next year.

There is a Carryover Worksheet. There is a Capital Loss Carryover Worksheet showing the carryover from the prior year and the current amounts.  Then there is also the Capital Loss Carry Forward worksheet showing the amount transferring over to next year.

In the Online version you have to save your return with all the worksheet as a pdf file to your computer to see the Capital Loss Carry Over and Carry Forward worksheets.

In the Desktop program you can go to Forms and find it in the list in the left column.

[mikem10]

Thank you, @VolvoGirl .  The Capital Loss Carryover Sheet in Turbotax mirrors Worksheet 4-1 in Pub 550 and I now see that my $200 cap loss in 2021 is carried forward to 2022.  

[BigDaddy68]

On my 2017 return I had Long Term Carry Over Loss of $2105 on fed return.  I forgot to use that Carry Over loss on my 2018, 2019 and 2020 return.  Can I file amended returns for 2018, 2019,2020 so that I can still leverage the  LT Carry Over Loss ? or is it gone for good ?

[JulieS]

Yes, you can amend your 2018 to show the carryover, and you may get a refund because of it, if you file by April 18, 2022. 

You will have to see if the amount carries forward beyond 2018 or not, by preparing that amendment.

Once you have made those changes check your return to see if you have a carryover to 2019. If not, you don't need to amend any more returns. 

Click here for more information.