capital loss carryover worksheet must be attached when efiling?

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Topic Author
ketanco
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Joined: Wed Jul 24, 2013 7:09 pm

capital loss carryover worksheet must be attached when efiling?

Post by ketanco »

I have a capital loss carryover coming from last year (a small amount, around lets say $50). The tax software I am using correctly pulled it form last year, and entered into schedule D line 14. That line refers to a capital loss carryover worksheet.. but that worksheet is not attached to my return.... does it need to be?

And If you are asking, how the tax software was able to pull the amount correctly from last year...When i was doing my 2021 taxes last year, I used the same software... To my 2021 return they attached the 2022 worksheet, the one that is supposed to be attached NOW in my opinion, not last year, (so they had attached it AS IF preparing it for 2022, so my schedule D line 14 was empty for 2021 return, which was correct).

So again, bottom line is, both my 2021 and 2022 returns are correct. But my question is why that worksheet was attached last year, but not this year, although its result was not used in schedule D line 14 last year but this year? And does it matter as long as my return itself is correct?

NOTE: my income was below my standard deduction last year, even before applying the capital loss. so although that capital loss was used to lower my income, it did not give me any tax benefit. That is why it is carried over to 2022 - can also be tested from worksheet, which I did.
boomer_techie
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Re: capital loss carryover worksheet must be attached when efiling?

Post by boomer_techie »

ketanco wrote: Thu Feb 09, 2023 3:39 am That line refers to a capital loss carryover worksheet.. but that worksheet is not attached to my return.... does it need to be?
The worksheet does not ever need to be attached - the IRS already has every piece of data entered into the worksheet.
To my 2021 return they attached the 2022 worksheet, the one that is supposed to be attached NOW in my opinion, not last year,
The 2022 instructions contain a worksheet that pulls in a lot of 2021 numbers. To my mind, the worksheet belongs with the 2021 return. However, the IRS has it in the 2022 instructions.
livesoft
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Re: capital loss carryover worksheet must be attached when efiling?

Post by livesoft »

I would not confuse tax-prep software instructions with IRS instructions.
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HueyLD
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Re: capital loss carryover worksheet must be attached when efiling?

Post by HueyLD »

ketanco wrote: Thu Feb 09, 2023 3:39 am I have a capital loss carryover coming from last year (a small amount, around lets say $50). The tax software I am using correctly pulled it form last year, and entered into schedule D line 14. That line refers to a capital loss carryover worksheet.. but that worksheet is not attached to my return.... does it need to be?

And If you are asking, how the tax software was able to pull the amount correctly from last year...When i was doing my 2021 taxes last year, I used the same software... To my 2021 return they attached the 2022 worksheet, the one that is supposed to be attached NOW in my opinion, not last year, (so they had attached it AS IF preparing it for 2022, so my schedule D line 14 was empty for 2021 return, which was correct).

So again, bottom line is, both my 2021 and 2022 returns are correct. But my question is why that worksheet was attached last year, but not this year, although its result was not used in schedule D line 14 last year but this year? And does it matter as long as my return itself is correct?

NOTE: my income was below my standard deduction last year, even before applying the capital loss. so although that capital loss was used to lower my income, it did not give me any tax benefit. That is why it is carried over to 2022 - can also be tested from worksheet, which I did.
I assume that you used TurboTax to prepare tax returns.

And TT has its own terminology for worksheets that may not be in sync with IRS terminology.

TT uses “capital loss carryOVER worksheet” to address cumulative net loss from prior years. And TT uses “capital loss carryFORWARD worksheet” to show the net carryover to the following year.

In your situation, you had a $50 loss you could not use in 2021 due to negative taxable income and the $50 was correctly carried forward to year 2022. However, you appear to have enough income in Year 2022 and the $50 loss was used up for year 2022 taxes. So, you no longer have any loss to carry forward and thus you don’t see the carryforward worksheet.
Topic Author
ketanco
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Re: capital loss carryover worksheet must be attached when efiling?

Post by ketanco »

HueyLD wrote: Thu Feb 09, 2023 6:45 am
ketanco wrote: Thu Feb 09, 2023 3:39 am I have a capital loss carryover coming from last year (a small amount, around lets say $50). The tax software I am using correctly pulled it form last year, and entered into schedule D line 14. That line refers to a capital loss carryover worksheet.. but that worksheet is not attached to my return.... does it need to be?

And If you are asking, how the tax software was able to pull the amount correctly from last year...When i was doing my 2021 taxes last year, I used the same software... To my 2021 return they attached the 2022 worksheet, the one that is supposed to be attached NOW in my opinion, not last year, (so they had attached it AS IF preparing it for 2022, so my schedule D line 14 was empty for 2021 return, which was correct).

So again, bottom line is, both my 2021 and 2022 returns are correct. But my question is why that worksheet was attached last year, but not this year, although its result was not used in schedule D line 14 last year but this year? And does it matter as long as my return itself is correct?

NOTE: my income was below my standard deduction last year, even before applying the capital loss. so although that capital loss was used to lower my income, it did not give me any tax benefit. That is why it is carried over to 2022 - can also be tested from worksheet, which I did.
I assume that you used TurboTax to prepare tax returns.

And TT has its own terminology for worksheets that may not be in sync with IRS terminology.

TT uses “capital loss carryOVER worksheet” to address cumulative net loss from prior years. And TT uses “capital loss carryFORWARD worksheet” to show the net carryover to the following year.

In your situation, you had a $50 loss you could not use in 2021 due to negative taxable income and the $50 was correctly carried forward to year 2022. However, you appear to have enough income in Year 2022 and the $50 loss was used up for year 2022 taxes. So, you no longer have any loss to carry forward and thus you don’t see the carryforward worksheet.
I didnt use turbotax.

But the last sentence you said makes sense now. Yes now I used the loss and nothing is carried to next year anymore. So then that is why i have no worksheet attached to my return
Topic Author
ketanco
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Re: capital loss carryover worksheet must be attached when efiling?

Post by ketanco »

Okay so it is no issue that I do not have that worksheet attached . It is also because now I used that loss to lower my taxable income and nothing is carried to next year anymore I think
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samsoes
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Re: capital loss carryover worksheet must be attached when efiling?

Post by samsoes »

Don't overthink it, don't second guess it. The software knows what it's doing.
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iceport
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Re: capital loss carryover worksheet must be attached when efiling?

Post by iceport »

livesoft wrote: Thu Feb 09, 2023 6:01 am I would not confuse tax-prep software instructions with IRS instructions.
Right. It's best to be confused directly *by* the IRS instructions.

:wink:

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