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Level 2
posted Mar 25, 2022 7:24:01 PM

First MA state return: can I use my carryover losses?

I moved to MA in 2021, and for some reason TurboTax is not automatically grabbing my carryover losses from the federal return to use in the MA return. That makes me wonder if I'm actually authorized to use carryover losses accrued while a resident of another state?

 

And should I split my use of the carryover losses between the old and the new state on a prorated basis?

I believe this would end up in schedule B, line 18 for short term carryover losses and schedule D, line 8 for long term.

 

Thanks!

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1 Best answer
Level 2
Mar 30, 2022 7:16:41 AM

This is the final answer for future Google searches:

 

After speaking to a CPA I was told non-MA carryover loss couldn't be used in an MA return. I later confirmed this to be correct with the MA Dept of Revenue.

 

I have found advice on the TurboTax forum by so-called "experts" to be consistently wrong... Please don't rely on this forum for anything.

2 Replies
Expert Alumni
Mar 30, 2022 7:14:45 AM

It sounds like you will have to enter the MA carryover loss.  If you go through the Massachusetts questions you will find the question Do you have a carryover loss.  You will then be able to post it..  The federal and the MA will probably not match unless it was the first year.

 

Yes you should prorate the your losses between the states to accurately reflect your carryover losses for the future.  Turbotax will maintain this information for your 2022 return if you have carryovers left.

Level 2
Mar 30, 2022 7:16:41 AM

This is the final answer for future Google searches:

 

After speaking to a CPA I was told non-MA carryover loss couldn't be used in an MA return. I later confirmed this to be correct with the MA Dept of Revenue.

 

I have found advice on the TurboTax forum by so-called "experts" to be consistently wrong... Please don't rely on this forum for anything.