I have 1256 Contract losses that I can carry back to a prior tax year, where I had 1256 Contract profits (gains).
First lesson learned: I had to go back to TT 2021 and, on the screen where you select which return to work on, in the bottom left, is an option to amend a return (use that). After I selected the 2021 tax file to amend, I had to find where the 1256 Contracts are entered, which is under Personal > Personal Income > Investment Income and shows income from Contracts and Straddles.
Having never amended a tax return before, I tried changing (edit) the existing entry and changing the gain/profit amount to 0 (zero). TT did not accept changing the profit amount to 0 (but also did not show an error)... it just ignored the change. THEN I noticed a Special Handling option of ‘Loss carryback from future year’, so I tried selecting that for the existing 1256 Contract entry, but TT didn’t generate a refund calculation (at top), so it wasn't working.
I found myself wondering if I should *Add* a Section 1256 Contract Summary that counteracts the gain? THAT (adding a new 1256 entry, with the carryback amount in the losses field) FINALLY worked! The refund calculator at the top finally showed a refund.
Since TT is most unfriendly if you zero out profits (ignoring the change) and does not explain that you need to add a 1256 Contract loss entry and leave the existing profit entry in place, I thought I'd share my lessons learned in hopes of helping someone else avoid the pain and frustration I went through.
