capital loss carryover from last year showing up as zero in 2021. Where did it go?

[az1900]

TurboTax automatically filled out the boxes for capital loss carryover and correctly shows much more than $3k loss from 2020.  It says "Capital Loss used in 2021" and shows an amount and then "Good News! Your capital loss was used to help reduce your income"

But on the main page, capital loss carryover shows up as zero.  Capital Gains do not show any reduction by that amount.

Where did this amount reduce my income?

[ColeenD3]

What main page are you talking about? You can see any carryovers on Schedule D, Lines 7 and 15.

Schedule D

[az1900]

In the "Capital Loss Carryover Summary" screen

it shows

Capital Loss Carryover from 2020 -$bigNumber

total gains/loss before carryover $gain -$loss

Net gains $amount (=$gain-$loss)

Capital loss used in 2021 $bigNumber

Where is $bigNumber actually used to reduce income? I don't see $bigNumber used anywhere to reduce income. Where would I see this number used?

[PatriciaV]

You can see the effect of this carryover loss on your taxable income on Form 1040 Line 7. This loss is limited to $3,000 per year, so anything more than that amount is carried over to next year.

As @ColeenD3 mentioned, you'll need to look at Schedule D to see how the carryover was applied to your capital gains or losses this year. Your carryover loss appears on Line 14 and your total gain or loss appears on Line 15. If Line 15 is a loss greater than $3,000, you see only the $3,000 loss on your Form 1040 Line 7. This is where your carryover loss reduces your taxable income.

[mhe8888]

Hi, 

I have the same question. I have $ xxxx capital loss carried over from 2020. My 2021 Turbo Tax Premier shows this carryover amount correctly in Capital Loss Carryover Summary page, but I cannot find where this carryover capital loss is applied to my 2021 Fed tax return.  I have checked form 1040 line 7 and schedule D but I do not see this carryover capital loss applied anywhere.  It looks like the software does not include this carryover capital loss at all, unless there are some tax rules prohibited it to be applied. 

Can you help?

[PatriciaV]

Does Schedule D show a gain or (loss) on Line 15? What amounts are shown on Lines 14, 16, and 21? What is shown on Form 1040 Line 7?

[mhe8888]

1040 line 7 and Schedule D line 15 both show a same number, let us call it $ xxxx8. 

Schedule D line 14 is blank.

Schedule D line 16 shows the same amount $ xxxx8 as on 1040 line 7 and Schedule D line 15. 

Schedule D line 21 is blank.

[VolvoGirl]

The current year carryover loss from the prior year is on schedule D line 6 & 14.

On the income page The 2021 column shows the carryover to 2022 (not your current loss for 2021).  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 for next year.

There is also a 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.

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.

[mhe8888]

Thank you for your reply. I am using a desktop version of Turbo Tax Premier 2021. 

When I go to Forms, my schedule D line 6 and 14 are both blank.

In my Capital Loss Carryover Worksheet, Line 8 (Short-term capital loss carryover for 2021) is blank.  Line 13 (Long-term capital loss carryover for 2021) is blank.

Under Wage&Income Tab, the Capital Loss Carryover Summary page shows that I have a loss from 2022, but  Capital Loss used in 2021 is $0. I have enough capital gain distribution that can use the  capital loss from 2020, but the software seems to tell me No. Why?

[JohnB5677]

Do you have the Capital Loss Carryover Worksheet from your 2020 tax return?  Please check these entries:

• Line 8 Short term Carryover to 2021
• Line 13 Long term Carryover to 2021

If there are numbers on the 2020 form you can manually post them to your 2021 tax return.

1. Go To Federal Taxes
2. Wages & Income
3. Scroll down to Investment Income
4. Select Capital Loss Carryover from drop-down
5. Enter your information.

[mhe8888]

Yes I do have the Capital Loss Carryover Worksheet from your 2020 tax return. My Turbo Tax Premier 2021 transferred those numbers from my 2020 return into my 2021 return.  

The 2020 Capital Loss carryover is transferred into my 2021 return all right. I can see a Capital loss carryover $ amount in the Capital Loss Carryover Summary page, but not in my 2021 Schedule D, as I mentioned above.

In 2021 return I have capital gain (from selling mutual funds) and capital gain distribution from 1099-DIV. But it seems that TurboTax Premier 2021 does not use the Capital Loss carryover from 2020 to offset those. That is my question. 

[JohnB5677]

Please check the results in your actual tax return.

If you have the Download/CD version you can check it in FORMS mode.

If you are Online:

1. On the menu bar on the left that shows.

   1. My Info

   2. Federal

   3. State

   4. Review

   5. File

2. Select Tax Tools

3. On the drop-down select Tools

4. On the popup menu

5. Select View Tax Summary

6. On the left sidebar

7. Select Preview my 1040

Check the value on line 7 of your 1040.

[mhe8888]

I have the Download/CD version and I have checked it in FORMS mode. 

I have checked:

1.  the value on line 7 of your 1040 - there is a Captial gain $ number there.  Click it and I get to:

2. 1040 Wks. There is a $ number there. Click it and I get to:

3. Schedule D. Line 15 and 16 have a Capital gain # number, same as above. Line 14 (capital gain loss carryover) is blank.

In the above forms I do not see a place/line showing my 2020 capital gain loss carryover $. 

Again, I know for sure that my 2020 Capital Loss Carryover $ is imported into my 2021 Turbo Tax Premier, in which the 2021 Capital Loss Carryover Summary page shows it. But I do not see the capital gain carryover offsets my 2021 gain in any place in the forms. 

I am no expert, but it looks more and more like a software issue?

Again, 

[mhe8888]

I have the Download/CD version for Windows and I have checked it in FORMS mode. 

I have checked:

1.  the value on line 7 of my 1040 - there is a Captial gain $ number there.  Click it and I get to:

2. 1040 Wks. There is a $ number there. Click it and I get to:

3. Schedule D. Line 15 and 16 have a Capital gain # number, same as above. Line 14 (capital gain loss carryover) is blank.

In the above forms I do not see a place/line showing my 2020 capital loss carryover $. 

Again, I know for sure that my 2020 Capital Loss Carryover $ is imported into my 2021 Turbo Tax Premier, in which the 2021 Capital Loss Carryover Summary page shows it. But I do not see the capital loss carryover offsets my 2021 gain in any place in the forms. 

I am no expert, but it looks more and more like a software issue?

[JohnB5677]

While you are in the forms mode. 

Check the Carryover Wks. lines 12(a)(b) and 13(a)(b).  The total carryover is under 2020

Also, check Cap Ls Carrfwd, and check to see if the losses were carried over.

If these records are incorrect go back to step by step

1. Go to Investment income
2. Capital Loss Carryover
3. Yes I'll review the carryover amount
4. Confirm the amounts posted
5. The next page is the Capital Loss Carryover Summary

Does this last page reflect a correct calculation?