While doing 2023 return, I have discovered that I overstated 2022 capital losses. What should I do now?

[skywire]

I'm doing my 2023 return. I see that in the 1099-B interview for 2022, I failed to adjust the basis of a publicly traded partnership partial disposition per the K-1 sales schedule. This error did not affect my 2022 tax liability, but increased my capital loss carryover to 2023 by $138. Must I file an amended 2022 return, or can I just manually correct the capital loss carryover into 2023?

[pk]

@skywire  strongly recommend  amending your 2022 return in TubroTax, then start the 2023 -- this will bring in the correct  figures for 2023.

I would also file the amended return just so IRS records get corrected -- even though that will not processed  in time for 2023.  But you will have record of the amended return to show how you  did the 2023.

Is there more I can do for you ?

[Opus 17]

I agree that, while you can manually correct the loss carryover for 2023 (and you don't need to amend 2022 first) you should still eventually amend your 2022 return.  It's free if you used Turbotax in 2022 (except for the cost of mailing) and it will be best to have all the paperwork line up. 

[Hal_Al]

Q. "Must" I file an amended 2022 return, or can I just manually correct the capital loss carryover into 2023?

A.  I wouldn't amend for $138, especially since it doesn't affect your 2022 bottom line. The manual correction will take care of 2023.  The carry forward worksheet is not sent to the IRS.  In the unlikely event that you hear from the IRS, it's easily explained.