Why Did TurboTax fail to Auto-fill My Remaining Capital Loss Amount on Schedule D & Provide No Capital Loss Worksheet

[Bob in Plano]

My 2023 Federal Tax Return does not have my Capital Loss Carryover amount on Schedule D  lines 14 & 15 like in years past.  I also do not have a Capital Loss Carryover Worksheet indicating what will be carried over when I file next year's 2024 filing, which has always been done in past years. 

The IRS accepted my e-filed tax return that lacks my Capital Loss carryover which is wrong, and which makes my refund and my estimated quarterly tax amounts all wrong too! How am I supposed to correct this mess that TurboTax has caused me? 😡   I realize I am supposed to check my self-prepared tax return but I fully expected ('reasonable expectation' is a recognized law term)  that TurboTax would continue to provide what it has provided in numerous previous years.  This is a programming or coding bug or error that TurboTax needs to fix! 

[VolvoGirl]

Maybe you used it up in 2023?  Do you have a loss on 1040 line 7?  Do you have the Capital Loss Carryover Worksheet showing the carryover from the prior year and the current amounts.  

Schedule D doesn't actually show the carryover amount. To find your Capital Loss Carryover amount you need to look at your return schedule D page 2. Line 16 will be your total loss and line 21 should be a max loss of 3,000. The difference between line 16 and 21 is the carryover loss.

Did you transfer from 2022?  Maybe the carryover loss from 2022 didn't get entered?   Check here,

If it didn’t transfer over from last year then
Enter a Capital Loss Carryover under

Federal Taxes or Personal (Home & Business)

Wages and Income

Then scroll down to Investment Income

Capital Loss Carryovers - Click Start or Revisit

[Bob in Plano]

Maybe you used it up in 2023?  Do you have a loss on 1040 line 7?  Do you have the Capital Loss Carryover Worksheet showing the carryover from the prior year and the current amounts.  

Schedule D doesn't actually show the carryover amount. To find your Capital Loss Carryover amount you need to look at your return schedule D page 2. Line 16 will be your total loss and line 21 should be a max loss of 3,000. The difference between line 16 and 21 is the carryover loss.

Did you transfer from 2022?  Maybe the carryover loss from 2022 didn't get entered?   Check here,

If it didn’t transfer over from last year then
Enter a Capital Loss Carryover under

Federal Taxes or Personal (Home & Business)

Wages and Income

Then scroll down to Investment Income

Capital Loss Carryovers - Click Start or Revisit

No, I didn't use up almost $250k of loss carryover last year! I wish I could use more than just $3k. 

Apparently I failed to  transfer over the balance when making entries as I did my 2023 taxes which I just e-filed.

I think I recall seeing something about loss carryover or carryforward so I must have clicked 'No' to do it. 

Since I have already e-filed and IRS has accepted it I must amend my return when 1040X becomes available, right?  

[CatinaT1]

Yes. Do not amend until your original return has been fully processed to avoid unnecessary delays.     

See this TurboTax FAQ for help with amending.   

You can e-file your 2023 amended federal tax return, but most states require amendments to be printed and filed by mail.   

You can check the status of your amended return here, but allow three weeks after filing for it to show up.   

[Bob in Plano]

 Do not amend until your original return has been fully processed to avoid unnecessary delays.   

No state tax here in Texas! 

So, when Form 1040X becomes available around February 14th should I wait longer before I amend? 

How do I determine when my original return has been fully processed and I can safely amend? 

Because I must have failed to transfer over the remaining Capital Loss carryover for next year (2024) when I do amend, will I have I lost any of the remaining Capital Loss carryover amount? 

► PS - It would be most helpful if this community  message board had a QUOTE feature to make it easier to keep up when messages are specifically related to someone's previous comments/messages.    

[CatinaT1 · Accepted solution]

You can check here to see when your return is done processing: https://sa.www4.irs.gov/wmr/

Because I must have failed to transfer over the remaining Capital Loss carryover for next year (2024) when I do amend, will I have I lost any of the remaining Capital Loss carryover amount? 

I'm not quite sure what you are asking here. You will likely have to manually enter your remaining loss carryover at the beginning of 2024 when you prepare your return next year. 

[Bob in Plano · Accepted solution]

"You will likely have to manually enter your remaining loss carryover at the beginning of 2024 when you prepare your return next year. "

Ugh, I was hoping that by me amending my 2023 tax return it would automatically have my remaining loss carryover ready to use in filing my 2024 return and available to transfer in future years.

Are you talking about when I do my 2024 return in TurboTax I may have to manually enter the loss carryover amount?  Why wouldn't an amended 2023 tax return re-initialize the carryover for 2024 in TurboTax?    

[CatinaT1]

It might, but I wouldn't count on it and would make sure it is carried over and the correct amount. I can't guarantee it will pull the information from the amended return.

[Bob in Plano]

To find your Capital Loss Carryover amount you need to look at your return schedule D page 2. Line 16 will be your total loss and line 21 should be a max loss of 3,000. The difference between line 16 and 21 is the carryover loss.

Did you transfer from 2022?  Maybe the carryover loss from 2022 didn't get entered?   Check here,

If it didn’t transfer over from last year then
Enter a Capital Loss Carryover under

Federal Taxes or Personal (Home & Business)

Wages and Income

Then scroll down to Investment Income

Capital Loss Carryovers - Click Start or Revisit  

"...make sure it is carried over and the correct amount. I can't guarantee it will pull the information from the amended return."

How do I make sure what I do in the amending process actually accomplishes what I need done?  

When I begin amending my 2023 return to add in my remaining capital Loss carryover amount so I don't lose it in future years going-forward (because I guess I failed to say Yes to transfer the carryover over) I'm hoping I can simply click Yes to transfer the carryover over instead of having to manually enter my remaining capital Loss carryover amount. 

I sure hope by amending this in the 'Investment Income Capital Loss Carryovers' section it  will automatically pull the balance figure from last year's return so I won't have to enter the figure manually.

Nevertheless, so I will be able to confirm what the amended return includes, will I be able to review the (not yet e-filed) amended return with all worksheets before I actually e-file the amended return so I can make further edits/changes if necessary?   

[RobertB4444 · Accepted solution]

Yes, you will be able to review everything before you file.  Make sure that the full amount of the loss carryforward from last year is on there.  Next year's TurboTax file should pull from the amended return so it should carryover but make certain before you hit 'file'.

@Bob in Plano 

[Bob in Plano]

For other TurboTax customers reading about this topic that may have run into this same issue of no Capital Loss carryover being auto-filled in Schedule D, this is a timeline of what I am having to deal with:  

To get the $661 refund I am owed I submitted an amended (1040-X) return on 7/1/2024 by Certified Mail with the correct Capital Loss carryover amount manually added for tax year 2023 (my Cap Loss carryover amount was obtained from 2022 worksheets).  I received a letter from IRS acknowledging my 1040-X and saying they needed an additional 60 days to send me a complete response on what action they are taking on my account.    Okay, I thought...

But in September, 2024 I received another letter from the IRS acknowledging correspondence in response to tax period 2020! (Wrong tax period IRS!)  The very next line in the letter says; The  tax period was stated in error as the issue pertains to tax period 2023. Then the very next line of the letter says; We have no record of receiving your amendment regarding your $3,000.00  Capital Loss Carryover. Please resubmit your amendment.  Wow! Wow! Wow!  

So, on 11/6/2024 I resubmitted my 1040-X again via Certified Mail (delivered on 11/12/2024).  I'm guessing I might hear something by 16 weeks (which is 3/7/2025), but with the wrong tax period error (i.e. 2020) and the IRS stating they had no record of my first amended return I really don't trust those people and don't know what to expect. I've read some amended returns for individuals (non-business) are taking as long as 18 months!

Between TurboTax not auto-filling my 2023 Schedule D with any of my Capital Loss carryover from 2022 (that left the pertinent Schedule D Capital Loss carryover Lines in my 2023 original tax return completely BLANK which I totally failed to notice before e-filing my original return) and the clear incompetence of the IRS - I really do not know what to expect. 

It makes me wonder what the  odds are I'll ever get the $661 refund the IRS owes me for this Capital Loss carryover debacle [that started with TurboTax not auto-filling my remaining Capital Loss data in my 2023 tax return]?       

[Bob in Plano]

This is another example of more TurboTax customers dealing with this same issue of Capital Loss Carryover not being auto-filled (imported/populated) on Schedule D.  😠

More upset TurboTax customers ► Why didn't TurboTax import my Capital Loss Carryover?

H&R Block Online Tax Prep auto-fills Capital Loss Carryover even when no Cap gains/loss is on the tax return! Why not TurboTax?  

[Bob in Plano]

Well, well - after more than a year from the first submittal of my  two 1040-X Amended Federal Tax Returns needed to fix this problem TurboTax caused I finally received a refund check for  the amount that TurboTax cost me for its irresponsible failure to auto-fill my remaining Capital Loss carryover of which using $3,000  should have been used to lower my 2023 taxes. The refund included about 7% for interest since the IRS had use of my money for over a year. 

TurboTax needs to investigate this problem that their customer's have been reporting - to make **bleep** sure their software always auto-fills (populates) Capital Loss carryovers in their tax return and uses the $3,000 maximum allowed to reduce the taxpayer's taxes. 

I'm glad the long wait is over and the IRS agreed with my amendments. It took over a year with me wondering if the IRS would agree that $3,000 of my remaining Capital Loss should have been used (had the TurboTax  software been coded correctly).  Fix it TurboTax!!!