Stock market loss

[dwightmlol]

Hi I had  $4000 loss from stock market in year 2021 and I was told I can only claim $3000 loss per year. If I would like to carry the unclaimed $1000 loss to my 2022's return, do I still need to report the $1000 in 2021 return? 

[DavidD66]

Yes.  The loss has to be reported in the year it occurred.  In order to carry a loss that occurred in 2021 forward to 2022 or beyond, it must be reported on your 2021 tax return.  Capital losses that exceed capital gains in a year may be used to offset ordinary taxable income up to $3,000 in any one tax year. Net capital losses in excess of $3,000 can be carried forward indefinitely until the amount is exhausted.

[fanfare]

" I was told I can only claim $3000 loss per year. "

you were told that because that's how Schedule D works.

IRS requires you to report all your transaction costs  and proceeds in detail on your tax return.

Then everything you're wanting will be handled automatically.