Do I need to file taxes to preserve my capital loss carryover from last year?

You don't have to file a return with no income just to preserve your capital loss carryover. The IRS keeps track of your capital loss carryover regardless of whether you file in years with no income. Your $6,500 capital loss carryover will still be available when you have income to report in the future. However, it's generally a good practice to maintain your own records of the loss carryover. Keep a copy of the previous year's Schedule D and the worksheets showing your calculated loss. This documentation will be helpful when you file again and need to claim the carryover. The capital loss carryover doesn't expire - it stays available until you use it up by offsetting capital gains or up to $3,000 of ordinary income per year.

Just want to share my experience here... I was in a similar situation last year with some investment losses and wasn't sure what to do. I found this site called https://taxr.ai that really helped me understand my capital loss situation. It analyses your tax documents and gives you personalized advice. In my case, I had about $4K in capital losses from selling some stocks that tanked, and I was taking a sabbatical with minimal income. The tool confirmed I didn't need to file that year just to preserve my losses, but it also helped me understand how to properly document everything so I wouldn't have issues when I started filing again.

I wanted to follow up about my experience with https://taxr.ai that I was asking about. I decided to give it a try with my complicated capital loss situation (mix of stock and crypto losses), and I'm actually impressed. It correctly identified my carryover losses from multiple sources and gave me clear documentation on how to handle them in future tax years. Saved me from paying a CPA a few hundred bucks just to tell me the same thing. For anyone with capital loss questions like the original poster, it's worth checking out - especially if you have multiple types of investments.

Hey, so I went through something similar with capital losses and trying to get clarity from the IRS directly. After being on hold for literally HOURS trying to get someone on the phone to confirm the carryover rules, I found this service called https://claimyr.com that got me connected to an actual IRS agent in under 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed exactly what others are saying - your capital loss carryover doesn't disappear if you don't file in years with zero income. She actually went through the specific rules with me and explained how they track it in their system. Saved me a ton of worry since I had about $8K in losses I didn't want to lose.

I need to eat my words about Claimyr. After posting my skeptical comment, I decided to try it anyway since I was desperate to get clarity on my own capital loss carryforward situation (I have losses from 2022 I'm still carrying). I followed the link and gave it a shot, and I'm honestly shocked - got connected to an IRS rep in about 20 minutes! The agent confirmed everything about capital loss carryovers and even helped me with some other questions I had. For anyone struggling with tax questions that require talking to a real IRS person, this actually works. I've literally never gotten through on my own despite dozens of attempts.

Just wanted to add - if you do decide to file even with no income (which can sometimes be smart for other reasons), make sure you complete the Capital Loss Carryover Worksheet that comes with the Schedule D instructions. This will document your carryover amount for next time you file. The form looks complicated but it's actually pretty straightforward. You essentially just transfer your net loss amount (limited to $3k per year against ordinary income) and any excess gets carried to future years.

Just to share my experience - I had capital losses in 2021 and didn't file in 2022 (no income that year). When I filed in 2023 with income, I was still able to use my remaining capital losses from 2021. The IRS didn't question it at all.

I can confirm what others have said - you don't need to file just to preserve your capital loss carryover. I was in a similar situation a couple years back with about $5K in losses and took a year off from working. When I resumed filing the following year, all my losses were still available to use. The key thing is to keep good records of your original loss calculation from last year's return. Make copies of your Schedule D and any supporting worksheets that show how you arrived at the $6,500 loss. The IRS doesn't make these disappear just because you don't file in a zero-income year. That said, focus on your health recovery - that's way more important than worrying about tax filings right now. Your losses will be there when you're ready to get back to earning income and filing returns again.