Cost Basis Carryover (Stocks)

[alexgenova14]

Hi, I'm sure a variation of this type of question has been asked numerous times, but I'm trying to understand the carry forward loss relative to my situation while looking at my return. On my schedule D form 1040 from 2022, I have line 16 and 21 listed with capital losses amounting to "-2,499.00." First, do I know for sure this entire amount was used towards my 2022 tax return, and second, can none of the previously mentioned losses be applied to my 2023? I want to know so before I start selling stocks before the year is over. Thanks!

[KNDavis]

Hi alexgenova14!

You're on the right track!  If you see $-2,499 on Schedule D, lines 16 and 21, you can confirm that you fully deducted those losses on your 2022 tax return by looking at Form 1040, line 7.  You should see the same number on page 1 of the 1040, reducing your other income.  

You are able to deduct capital losses up to $3,000 each year, so it sounds like you have received the full benefit of those losses on your 2022 tax return.  You can confirm whether you have capital loss carryovers to 2023 by looking at the Federal Carryover Worksheet included with your 2022 tax return.  If for some reason you weren't able to benefit from the 2022 losses, you would see the carryover amount listed on this worksheet.

Unless you see capital loss carryovers listed on the 2022 Worksheet, none of the $-2,499 can be used again for 2023.  

Thanks for participating in today's Ask The Expert Event!

[alexgenova14]

Thank you!

In regards to the "federal carryover worksheet," this page would've been attached to my return if I did have a carryover and not attached otherwise?

[KNDavis]

Yes, if you have capital losses to carry over to 2023, you will see the Federal Carryover Worksheet included in your 2022 tax return.  This worksheet contains any type of carryover that carries from 2022 to 2023 - not just capital losses - so you may have this worksheet with other carryover items.  Thanks!