Capital Loss Carryover and Amendment Questions for 2023 and 2024

[BigRabit1]

Hi everyone,

I am currently in the process of completing my 2024 tax return using Turbo desktop software, and have 2 questions on my capital loss carryover.

I won't disclose specific numbers, but I'll give ballpark figures.

1. In 2022, I reported a total capital loss of $16,000 on Schedule D line 16. After applying the $3,000 of the loss, which I recorded on line 21, I ended with a carryover of $13,000 to 2023. 
2. In 2023, I reported a total capital loss of $14,000 on Schedule D line 16, and after using $3,000 of that loss, which again is recorded on line 21, I ended with a carryover of $11,000 to 2024.

Question 1 - I didn't notice this until now. But my Schedule D, Line 6 is blank for 2023. It seems like Turbo didn't pick up my Capital loss to carry over from 2022 to 2023, which should be $13,000. Can I file a 1040-X with TurboTax, another app, or do I have to file it using the paper form?

Question 2 - I don't know how soon I can get my 2023 return amended. If it doesn't get processed before the 2024 return due date, do I have to just file my 2024 with the incorrect 2023 cap loss carryover, then make amendment once my 2023 amendment is accepted and processed?

I created a table to show the numbers. Thank you in advance for any insights.

[VolvoGirl]

I don’t know about all of your questions but yes you can use more than 3,000 per year.

You get to first offset the loss against any gains you have each year so that can use more of it up.  Then after applying the loss to the current gains you can take a max loss of 3,000 (1,500 MFS)per year.  Turbo Tax does all the calculations for you.  Just enter the full prior year carryover amount.

[BigRabit1]

Thank you for explaining it! I updated my questions. it seems like I need to file an 2023 return amendment to accurately reflect the cap loss carryover from 2022. Would you know the best way to to do it? Can I use Turbo, another app, or do I have to file a paper return? 

Thank you again!

[ThomasM125]

You can file the amended return using TurboTax if you used it to file the original return. You will see an option for that when you log into your TurboTax on your home page.

[payamps]

I have very similar problems with you. Can you tell me your next step?

For 2023 1040x, Turbotax doesn't let me do e-file, only give me a PDF and let me to paper file them.

[AnnetteB6]

The next step would be to enter the correct capital loss carryover amount into the 2024 return so that the 2024 return may be filed.  

Use the information in the following TurboTax help article to enter the values that should have been carried over from 2023:

How do I enter my capital loss carryover?

@payamps 

[payamps]

Do I need to file state tax amend, too?

My AGI doesn't change, everything is the same in 1040, just correct numbers in Schedule D.

[AmyC]

No, you don't need to file the state without changes.

@payamps 

[loriprl64]

I have a similar question. My 2024 carryover capital loss amount for California also didn't come through from my California 2023 return either. I luckily went through the forms return to find this box was red. I filed last year with Turbo Tax and this amount has always carried forward. The amount showing on this amount for the state is different than the one on Federal. I don't even know if I was supposed to enter anything else and I'm nervous to submit my taxes until this is figured out.

[DianeW777]

The best thing to do is first check to see that the amount for California (CA) is the same as federal on your 2023 tax return. Next, for 2024, be sure an amount is carried to the 2024 return and if not enter it yourself. Information below and in the link to help with more details about the CA return and capital loss carryovers.

In general, for taxable years beginning on or after January 1, 2015, California law conforms to the Internal Revenue Code (IRC), there are a few continuing differences between California and federal law. When California conforms to federal tax law changes, they do not always adopt all of the changes made at the federal level. For more information, go to ftb.ca.gov and search for conformity. 

Click here for additional information and discussion about it.

@loriprl64 

[Hunter55]

The suggested TT article "How to enter capital loss carryover" says under capital loss carryover select "Jump to" link.  I don't see any link.  I went under "Investment income>>>Update>>> which showed figures from 2023 but no link. Please Help!

[MarilynG1]

In TurboTax Desktop, in the Income section, under Investment Income, it's the second item.

In TurboTax Online, in the Wages & Income section, it's half way down the page, below Investments & Savings.

If you transferred a 2023 return, the amount may already be filled in.

@Hunter55