Every year, TT uses $3,000 of my capital loss carryover. This year, it says it is using all of it (much more than $3,000). I see there was a issue noted about this in January, but I haven't seen any updates and the problem is still occurring, which is preventing me from filing my taxes.
With April 15th quickly approaching, is there a manual way for me to correct this? I use TT Premier Desktop and I've looked through the forms view, but I can't find a place that shows these numbers.
Please provide us guidance on a workaround or please give us a target correction date. We are running out of time and I don't want to have to find a new tax platform at this late date.
Yes you can use up more of it in a year. 3,000 is just the max loss you can deduct on your tax return.
You get to first offset the loss against any gains you have each year so that can use more of it up. Then after applying the loss to the current gains if you still have a loss, you can take a max loss of 3,000 (1,500 MFS) per year on your tax return. Turbo Tax does all the calculations for you. Just enter the full prior year carryover amount.
If you have capital gains, you will use more than $3,000 of capital loss carryover in the current year. $3,000 is the maximum loss allowed. Please verify that your tax return does not show a loss of less than negative $3,000 on Form 1040 line 7.
Here is some more information you may find helpful: Capital Gains and Losses