I’ve been trying to figure out how these loss carryovers work because mine seem to reset every year, and it’s confusing me.
Let’s say in 2022, I had 10k in short-term losses. I wrote off 3k and carried over 7k into 2023.
In 2023, I had another 9k in net losses and wrote off another 3k. So by my math, I should carry forward 7k + 6k = 13k into 2024. But I’m only seeing 6k being carried forward.
Where did the 7k from 2022 go? Shouldn’t that have been reported somewhere on my 2023 return? I can’t seem to find it.
You can carry over up to $3k in losses each year against gains or ordinary income until it’s all used up. The original return should report the carryover losses. You’re responsible for tracking these losses yourself. If you ever get audited, you need to prove you didn’t claim too much.
@Noor
Yeah, I get that part. My question is more about where the carried-over amount from last year shows up on this year’s return. I checked Schedule D but can’t find it.
I carried over 7k from 2022. Where does that get reported on my 2023 return if I want to carry it forward again into 2024?
Hollis said:
Not sure I get the issue. You seem to already be tracking your carryover losses. Where exactly are you stuck?
On my 2022 carryforward worksheet, line 8 shows 7k in losses. Now for 2023, shouldn’t I carry over that 7k as ‘unused losses from 2022’ and report it somewhere? I feel like it should be showing up somewhere so I can keep carrying it forward until it’s used up.
‘Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Worksheet.’
They mean last year’s worksheet, right? That would make sense since this year’s worksheet is for carrying losses forward into the next year. Am I getting this right?
I noticed mine has been blank for a while, so I might not have been carrying over my losses properly.
Ben said: @Harlan
Yeah, the carryover worksheet from the current year references the prior year. Sounds like you might not have been tracking them correctly.
Okay, but how does this year’s worksheet reference last year’s? Shouldn’t I see that 7k carryover amount somewhere on the worksheet? Right now it starts with an entry from 1040 line 15, and I don’t see the 7k anywhere.
So is line 6 on Schedule D where I first report the carryover loss from last year, and then it flows into this year’s worksheet?
Here’s what I’m thinking:
Take line 8 from the 2022 worksheet (7k carryover).
Enter that on Schedule D line 6 for 2023.
The result goes into the 2023 carryover worksheet line 8.
Use the 2023 worksheet line 8 for the 2024 return.