Capital Loss Carryover from TurboTax

Question

Last year I did my taxes with TurboTax and this year I'm looking for a better tool. I did some tax loss harvesting in 2022 and I'm carrying a capital loss balance over into my 2023 taxes. I know that TurboTax tracks this for me since I entered all my 2022 tax info in TT. If I use FreeTaxUSA to do my 2023 taxes instead of TT, how can I make sure my remaining capital losses from 2022 are recognized and applied?

RBorch · Accepted Answer

That is a great question! You will be able to enter your Capital Loss Carryover into the software under the Income tab then click Capital Loss Carryover from Last Year.

If you have more capital losses than capital gains in previous years, part of those losses may be carried over to your 2023 tax return. Look at Schedule D line 15 of your 2022 tax return. If Schedule D line 15 is a loss, then you might have a capital loss carryover to 2023.

We provide a Capital Loss Carryover Worksheet in the 2023 Schedule D instructions to calculate the amount of the carryover, and whether it is short-term or long-term.

You can only deduct a maximum of $3,000 of capital losses on your Form 1040 each year. Any capital losses in excess of $3,000 carry forward each year until they are all used up.