I have a big loss on stock in 2020. and in turbotax, when I import my tax form from my stock broker, it turns out i need to pay more tax. why is it
When you sell a stock for a loss, this is considered a capital loss and can only be offset by selling stock for which you have capital gains. If you have no capital gain, then you can offset $3000 against other income. Any loss above $3000 can be carried forward into future years until the loss is completely used up.