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Level 1
posted Jun 6, 2019 12:34:09 AM

My 6000$ capital losses is not adding up with my original refund (from my wage withholding), in fact it's not reaching 3000 even. what can be wrong?

Hi, I have a capital loss of close to 6000. My refund before accounting for this loss is 1961 federal and 509 state (NY). After entering loss, I got 2621/811 only. Shouldn't I get 3000+1961 and carry over 3000 to next year? I can't seem to get help from turbo tax even though I have premier

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1 Best answer
New Member
Jun 6, 2019 12:34:13 AM

No, the $3,000 capital loss is a reduction in taxable income, not a dollar for dollar tax credit.

So, let's say you had $50k in income. After the loss, you now have $47k in income to be taxed. It doesn't get added to your refund like a tax credit sometimes will.

2 Replies
Alumni
Jun 6, 2019 12:34:11 AM

Capital losses reduce income...they do not get deducted from your tax due balance.

New Member
Jun 6, 2019 12:34:13 AM

No, the $3,000 capital loss is a reduction in taxable income, not a dollar for dollar tax credit.

So, let's say you had $50k in income. After the loss, you now have $47k in income to be taxed. It doesn't get added to your refund like a tax credit sometimes will.