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sphairas
Returning Member

Tax Loss Carry Forwards and Amending Returns

I just discovered that I have substantial Short-Term and Long-Term Tax Loss Carry Forwards that I have not used since my 2016 tax return. Reviewing my income filed for years 2017 - 2021, I believe that I might have been able to use some of the Carry forwards to reduce or eliminate taxes owed for some of those years. Can I apply those Carry Forwards as called for via Amended Tax filings? If so, how do I proceed? 

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DianeW777
Expert Alumni

Tax Loss Carry Forwards and Amending Returns

Yes, if you have a capital loss carryover from 2021 to 2022, then you should amend to take advantage of the loss for 2022 and for the future if it applies.

Read all the instructions before you begin so that TurboTax knows the original numbers and the new numbers for your amended return.  Follow the instructions in the link below to enter your capital loss carryforward.

@ky39 

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6 Replies

Tax Loss Carry Forwards and Amending Returns

yes, you can amend but any loss for 2016 and 2017 that would have been utilized is lost. 2016 and 2017 are closed years.  any remaining can be used in 2018 but you only have until 4/18/2022 to file. any remaining can be used in 2019, then 2020, then 2021 any still used carries forward to 2022

you would need Turbotax desktop software 2018-2020 and would need to file by mail since e-filing for those years is closed.

 

RaifH
Expert Alumni

Tax Loss Carry Forwards and Amending Returns

Yes, you can apply a carryforward of your capital losses by amending prior years' returns. You may file an amended return up to three years after the original due date. That means you missed out on 2017 and have about a week left to get a postmark on your 2018 amended return, assuming you originally filed them on time. 

 

Since you missed out on 2017, you still need to calculate how much of your loss would have been used in 2017, even though you do not realize a benefit from it since it is too late to amend that particular return. If you had 80,000 of carryovers in 2016 and did not have any capital gains in 2017, you generally will have to report 77,000 as your starting carryover amount in 2018 because 3,000 of them would have been used in 2017. The amount may be less if you did not have taxable income, were married filing separately in 2017, or had additional capital losses in 2017. The amount may be more if you had capital gains in 2017 to offset. 

 

If you filed 2018-2021 with TurboTax, you do have access to your original filing, even if you did it online. You can get them by going to Your tax returns & documents and selecting Download .tax file for each year. For the current year, you can file the amended return online. However, for prior years, you will have to purchase the TurboTax software for that year to file the amended return. You can download prior year versions here

 

You will need to attach an explanation statement to each amended return as to why you are filing. You should explain on the 2018 amended return that you missed the 2017 amended return period and how you determined the correct capital loss carryover for 2018 by taking the 2016 numbers and subtracting what you would have taken in 2017. 

sphairas
Returning Member

Tax Loss Carry Forwards and Amending Returns

Thanks, Mike. So, 2017 is gone. OK. For 2018, I can amend with modified income based on applying Tax Loss Carry Forward numbers, but they are not PRESENT in the 2017 return - they last appeared in my 2016 return. Does the IRS have any sort of rule that says that you MUST include Tax Loss Carry Forward numbers from one year's return to another (at least the worksheet) EVEN IF YOU DON'T NEED THEM IN A GIVEN YEAR FOR CONTINUITY'S SAKE? 

 

For instance, I can use some of those losses this year - so I entered the last known balances (over a million dollars) into Turbo Tax, but they were from Schedule D from 2016. Will the IRS say, "Hey - wait a minute - where did these numbers come from?"

 

Thanks much. 

sphairas
Returning Member

Tax Loss Carry Forwards and Amending Returns

Very interesting. Great explanation. Thanks much.

ky39
Returning Member

Tax Loss Carry Forwards and Amending Returns

I just filed 2022 tax return, but since the record from the last year's file was lost in the Turbo Tax file, the last year's Capital Loss was not included.  Should I file amendment?  If so, How should I do it?

DianeW777
Expert Alumni

Tax Loss Carry Forwards and Amending Returns

Yes, if you have a capital loss carryover from 2021 to 2022, then you should amend to take advantage of the loss for 2022 and for the future if it applies.

Read all the instructions before you begin so that TurboTax knows the original numbers and the new numbers for your amended return.  Follow the instructions in the link below to enter your capital loss carryforward.

@ky39 

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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