Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
kalabrik
New Member

I had a stock loss of -$16,000 in 2020. Why isn't Turbotax writing this off and using it to make me more money on my return?

 
3 Replies
Bsch4477
Level 15

I had a stock loss of -$16,000 in 2020. Why isn't Turbotax writing this off and using it to make me more money on my return?

The stock loss is used to offset any capital gains and then up to a maximum of $3,000 is deducted from your income.  The rest is carried over to the next year. 

 

 

gloriah5200
Expert Alumni

I had a stock loss of -$16,000 in 2020. Why isn't Turbotax writing this off and using it to make me more money on my return?

The Internal Revenue Code (IRC) only allows a maximum $3000 loss per year against net gains on your income tax return.  The remaining capital loss carryover will be carried to the next year.

VolvoGirl
Level 15

I had a stock loss of -$16,000 in 2020. Why isn't Turbotax writing this off and using it to make me more money on my return?

If you have investment sale losses, after you subtract the losses from your gains you can only deduct up to 3,000 per year. You can only deduct up to 3,000 (1,500 MFS) loss per year after any gains you have. So if you have a lot of current gains you can use up the loss. The rest you will have to carryover until it is used up.

 

If you use Turbo Tax next year the Capital Loss Carryover will transfer over.  Or you will have to manually enter the amount.  

 

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.

Dynamic AdsDynamic Ads
Privacy Settings
v