Carryover of Short-Term Capital Loss

jayfreedman205
jayfreedman205 Member Posts: 3 Newcomer
in Filing my taxes

I had a short-term loss of about $6400 on my 2022 return (filed with FreeTaxUSA), of which $3000 could be claimed and the rest was carried over. I expect to have an additional short-term capital loss this year. Will the 2023 software automatically handle the carryover and additional loss?

Best Answer

  • CoryF
    CoryF FreeTaxUSA Agent Posts: 168
    Answer ✓

    Thank you for this question Jay.

    Yes, FreeTaxUSA will carryover the leftover carryover loss that was unused to your 2023 tax return software when you rollover your information from 2022. When you input your 2023 stock sales and cost basis, any loss calculation will add to your carryover losses and be shown on your 2023 Schedule D when you view it. The software will then carry the maximum deductible $3000 loss to the first page of your 2023 Form 1040 as a deduction from total income. The rest will be calculated to carryover to the next tax year.

Answers

  • jayfreedman205
    jayfreedman205 Member Posts: 3 Newcomer

    Thank you, Cory. It's what I hoped and expected, but it's good to be sure.

  • Debsvenus_92
    Debsvenus_92 Member Posts: 1 Newcomer

    Hello i’ve been doing my taxes on freetaxusa for over six years. I always see my business loss carryover on my federal return and I know that it automatically puts it there from prior years if it’s qualified however I never see it on the state once I get to that part of doing my taxes so now my question is, does it automatically calculate that into my state return as well or do I have to put it in myself?

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