Capital Loss from 2018

[lx1111]

Where/how do I enter carryover loss from 2018? A portion of this have been claimed in the past years since. I wonder if there is an easy way to do that. Also enter Capital loss from last year. I used to do my tax using taxact.

[VolvoGirl]

You should only need to enter the carryover loss from your 2022 return.  It should have been carried over each year.  You have to report the carryover every year until it's used up.  You can't skip a year.  Even if you don't report it on your return you have to reduce it by the 3,000 (1,500 MFS) when you carry it over to next year.  You can't choose when to use it.

Do you have Schedule D from last year?  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.

[VolvoGirl]

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 prior year carryover amount.

Enter a Capital Loss Carryover under

Federal Taxes or Personal (Home & Business)

Wages and Income

Then scroll down to Investment Income

Capital Loss Carryovers - Click the Start or Update button

You enter the full amount that carried over, not just the 3,000

[ThomasM125]

I assume you are talking about a capital loss carryover, one from losses on investment sales. The first thing you would do is determine what the correct loss carryover amount is from last year. You are required to apply a capital loss carryover to the next year's capital gains and then up to $3,000 against ordinary income. Whether you did that or not, you would be required to determine what the previous year carryover amount was by factoring in the gains and additional $3,000 deduction for each year leading up to the current year. 

Assuming you know what the correct carryover loss is for the current year, you can enter it in TurboTax as follows:

1. In the Federal section of TurboTax, go to Wages and Income

2. Find the Investment Income section

3. Choose Capital Loss carryover

4. Work through that section to enter your capital loss carryover amount

There is  screen in that section where you can enter information off of your prior year Schedule D if you have one and that will determine what your capital loss carryover amount is for the current year: