Capital loss carryover error in turbotax 2024

[iowasix]

I am anxious to file my return electronically as I have a large refund. I previously filed a joint return, but this year am filing as a single, so started a new return as required. My previous carryover loss was 3000 but is only 1500 this year as a single filer. BUT Turbotax insists on putting 3000 on Schedule D, Line 21. When I override to correct that, it of course won't let me e file.

As I am anxious to file electronically before the IRS beings to flounder due to all the firings, what should I do? If I file by paper, I doubt I'll see that refund for months.

My income is so low this year, the carryover isn't even helping me, but I'd sure hate to lose out on another 1500 carryover loss b/c of a turbotax issue. 

I saw somewhere something with the carryover loss is a known issue? Is this it? When will it be fixed.

Thanks, B. Clark

[SusanY1]

If you are filing as single, $3,000 is the correct amount. 

The $1,500 figure would be for the Married Filing Separately (MFS) filing status.  

You can find more information about capital loss carryovers by filing status HERE.

 

[iowasix]

Thank you so much! I am a bit confused though, as i  had read elsewhere that we are to split it - we were once married and it was a joint account. I split the existing loss in half as well.

[iowasix]

Is your answer still correct given the additional information I provided?

[DianeW777]

Yes, the answer is still correct.  This assumes you are no longer married and the capital loss was split between you during the divorce proceedings.

If you are not using the married filing separately (MFS) filing status the allowed loss each year is a maximum of $3,000 if gains have not removed your capital loss. Any excess will be carried forward to the following tax year.

The loss carryover is divided and allocated based on the separate capital gain/loss for each spouse. If this was joint, then you could divide equally. But it would be advisable to check with your divorce attorney in case your decree says something specific. If community property state must do 50/50.

[VolvoGirl]

@iowasix   What was the actual carryover loss from the Joint return?  3,000 is just the max loss you can take on your return.   You might have had a bigger amount to carryover.  Look at your 2023 tax return.  And  yes I think you need to split the carryover and  just enter your half.   

Schedule D doesn't actually show the carryover amount. To find your Capital Loss Carryover amount you need to look at your return schedule D page 2. Line 16 will be your total loss and line 21 should be a max loss of 3,000. The difference between line 16 and 21 is the carryover loss.

If you used the desktop version or have the complete pdf of your last year's return you might have the Capital Loss CO (carryover) worksheet that will tell you the amount.

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 worksheet. There might be 2. 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.