Capital Loss Carryover Missing on Schedule D - TurboTax Error for 2023-2024 Returns

This is actually a pretty common issue with tax software. The capital loss carryover is one of those items that sometimes gets missed during the transfer process between tax years. For your first question, yes, you can absolutely file a 1040-X to amend your 2023 return. You can do this through TurboTax if you used the same version for both years. Just open your 2023 return, make the correction to include the carryover loss from 2022, and follow the amendment process. If you prefer, you can also use another tax software or the paper form. For your second question, I wouldn't recommend filing your 2024 return with incorrect information. The IRS will process your 2023 amendment eventually, but in the meantime, you should file your 2024 return correctly based on what the numbers SHOULD be. You'll need to manually enter the correct loss carryover amount in your 2024 return. Here's what I suggest: First, amend your 2023 return to include the $14,500 carryover from 2022. Then, when filing your 2024 return, manually enter the correct carryover amount (which would be your 2023 losses PLUS the corrected carryover from 2022, minus the $3,000 you used in 2023).

I discovered taxr.ai after having a similar issue with my capital loss carryovers last year. I'd been using H&R Block software and somehow the software didn't correctly pull forward my capital losses from previous years. I was so confused because the numbers weren't matching up with what I had in my records. I uploaded my previous returns to https://taxr.ai and it immediately identified the discrepancy in my Schedule D. The service analyzed my tax documents from the past three years and showed exactly where the error occurred and how much it had cost me. It saved me from having to manually compare every line item across multiple years of returns. Their system also generated a detailed explanation that I could use when filing my amendment. Made the whole process way smoother than I expected.

Just wanted to update everyone. I took the advice about using taxr.ai and wow, I'm glad I did! Not only did it confirm the capital loss carryover error on my Schedule D, but it also found another issue with my retirement contributions that I had completely missed. The report they generated made it super clear what needed to be fixed and how to properly amend both returns. I was able to successfully file my amendments for 2023 and correctly complete my 2024 return with the proper carryover amounts. Honestly, the peace of mind alone was worth it. Tax season is stressful enough without wondering if you're doing your amendments correctly!

I had a similar issue with capital loss carryovers last year, but my problem was I couldn't get any help from the IRS. I called every number I could find and either got stuck in an endless phone tree or was on hold for hours only to get disconnected. Finally, someone recommended Claimyr to me. You go to https://claimyr.com and they somehow get you past the IRS phone queues so you can actually talk to a real person. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was able to speak with an IRS rep who confirmed exactly how to handle my amendment and made sure I had the right forms. They even told me what supporting documentation to include to speed up processing. Saved me tons of time and frustration.

I need to eat some humble pie here. After being skeptical about Claimyr in my previous comment, I decided to try it anyway because I was desperate to get answers about my own Schedule D issue. I was honestly shocked when it actually worked. I got connected to an IRS agent in about 15 minutes (after waiting 3+ hours on my own the day before with no success). The agent was super helpful and walked me through exactly how to handle my capital loss carryover situation. For anyone dealing with capital loss carryover issues like the original poster, the IRS agent confirmed that you should: 1) Absolutely file an amended return for 2023 to correct the carryover from 2022 2) File your 2024 return with the CORRECT carryover amount, not the incorrect one 3) Include a brief statement explaining that you've filed an amendment for 2023 Sorry for being so skeptical earlier - just wanted to follow up and confirm this service actually delivers.

Something else to consider with your capital loss carryover situation - make sure you're tracking the character of the losses correctly (short-term vs. long-term). This matters when you're carrying losses forward multiple years. Short-term losses offset short-term gains first, and long-term losses offset long-term gains first. Only after that do you net short-term and long-term together. This tracking can get messed up in tax software sometimes. If you end up filing paper amendments, use Form 8949 and Schedule D together, and you might want to include a separate worksheet showing your loss carryover calculations just to make it super clear to the IRS what you're doing.

Just an FYI - if your 2023 amended return isn't processed before you file for 2024, you might get a notice from the IRS about the discrepancy. Don't panic if this happens! Just respond with a copy of your 2023 amended return and explain the situation. I had something similar happen with NOL carryovers a few years back. The IRS computer system flagged the discrepancy, but once a human reviewed my explanation, everything was fine. The key is to keep good records and be consistent with how you're handling the error correction.

I went through almost the exact same situation two years ago with my capital loss carryovers getting "lost" in TurboTax. It's incredibly frustrating when you discover these errors right before the filing deadline. One thing I learned is that you should double-check ALL your prior year carryovers - not just capital losses. Look at things like charitable contribution carryovers, business loss carryovers, and any education credits that might carry forward. When tax software has an issue with one type of carryover, it sometimes affects others too. Also, when you're preparing your amendment, take screenshots or print copies of the relevant pages from your software showing the error. This documentation can be helpful if you need to contact the IRS later or if there are any questions about your amendment. The good news is that once you get this sorted out, you'll have a much better understanding of how carryovers work, and you'll probably catch any similar issues much earlier in future tax years. I now manually verify all my carryovers every year before filing, regardless of what the software says.