Should I amend my 2022 tax return due to Form 8949 error? $30 capital loss mistake

This is actually a good question! A $50 error on your Form 8949 that doesn't change your tax liability is generally considered a minor mistake. Here's my take on your questions: 1. The IRS is unlikely to be concerned about this error since it doesn't affect your tax liability. Your capital loss was already limited to $3,000, so the additional $50 loss wouldn't change your 2022 refund. 2. Technically, you should file an amended return (Form 1040-X) when there are errors on your original return. However, many tax professionals would consider this small enough to handle differently. 3. An amended return doesn't automatically increase audit risk, especially for a minor correction that doesn't change your tax liability. 4. The best approach is actually to correct your 2023 capital loss carryover amount when you file your 2023 return. Just use the correct carryover amount (including that extra $50) without formally amending 2022. 5. No need to wait for an amended return to be processed before filing 2023 - you can file your 2023 return with the correct carryover amount. 6. Document your correction in your personal tax records. If you're ever questioned, you can show you identified and corrected the error. This approach is both compliant and practical - you're using the correct numbers going forward without creating unnecessary paperwork for a small error that doesn't affect tax liability.

After making a similar mistake on my 8949 last year (actually mine was worse - about $870!), I discovered taxr.ai (https://taxr.ai) which has been a lifesaver for me. It automatically reviews your tax forms for errors like this before filing. I uploaded my forms and it caught several small mistakes including a capital loss calculation error similar to yours. What I really liked is that it specifically examines Form 8949 entries against your actual transactions and highlights discrepancies. The tool flagged my basis calculation mistakes that I would have completely missed. It's way more thorough than the basic error checks in most tax software.

I just wanted to update after checking out taxr.ai that was mentioned earlier. I uploaded my 2022 return that I was worried about, and it actually found ANOTHER error I hadn't even noticed! I had completely messed up the holding period on one of my stock sales (marked as long-term when it was actually short-term), but since I was under the $3000 cap anyway, it confirmed it wouldn't change my tax liability. The report showed exactly what was wrong and what the correct entries should be. The thing I found most useful was their recommendation section that told me exactly what to do in my situation - basically what the first commenter suggested about just correcting the carryover on my 2023 return without filing an amendment. Saved me a bunch of unnecessary paperwork!

If you're dealing with the IRS about this or any other issue, you might want to try Claimyr (https://claimyr.com). I spent THREE WEEKS trying to get through to the IRS about an amended return issue last year, and their callback system got me connected with an actual IRS agent in under 45 minutes. They have a demo video at https://youtu.be/_kiP6q8DX5c that shows how it works. I was initially planning to file an amended return for a similar small error, but after talking with the IRS agent, they advised me to handle it exactly like others here suggested - just correct it going forward on the next return instead of filing an amendment for something that doesn't change my tax due.

I need to eat my words from yesterday. After spending 3 hours today trying to get through to the IRS about my amended return (ironically also for a Form 8949 issue), I broke down and tried the Claimyr service mentioned above. This thing actually works exactly as described. I got a call back in about 35 minutes with an actual IRS agent on the line. The agent confirmed that for small capital loss reporting errors that don't change your tax liability, they recommend just correcting the carryover amount on your next return rather than filing an amendment. Saved me hours of frustration AND from filing unnecessary paperwork. Sometimes my skepticism gets the better of me!

I'm a bit confused about the capital loss carryover. If you have more than $3000 in capital losses, are you saying you can use the remainder on next year's taxes? How exactly does that work? I had about $5000 in losses last year but my tax software only seemed to use $3000 of it.

Does anyone know if capital loss carryovers expire? I have losses from 2008 that I've been carrying forward for years (had a really bad time in the market crash). Am I supposed to use them by a certain date?

This is exactly the kind of situation where perfect shouldn't be the enemy of good! As others have mentioned, a $50 error that doesn't change your tax liability is really minor in the grand scheme of things. I'd recommend keeping detailed records of what you discovered and when you discovered it. Write down the correct numbers and file them with your tax documents. Then when you do your 2023 return, just use the correct carryover amount (including that extra $50 loss). One thing I haven't seen mentioned yet - if you're using tax software for 2023, many programs will actually ask you to verify your capital loss carryover amount and may even flag if the number seems inconsistent with what they expect. This gives you a perfect opportunity to enter the correct amount with documentation of why it differs from your 2022 filing. The IRS really does focus on material errors that affect tax liability. A $50 capital loss correction when you were already at the $3000 limit just isn't going to be on their radar. Save yourself the headache of an amended return and handle it going forward - you'll sleep just fine!