Federal 2011: Schedule D Carryover Loss
Taxpayers, who sell investments such as stock, can deduct a capital loss on sales up to $3,000 ($1,500 is married filing separately) on their tax returns. Any additional loss is carried to the following tax year.
Taxpayers, who exercised incentive stock options that were not sold in the same year or sold certain stock with a different tax basis for alternative minimum tax (AMT) purposes, may have a different capital loss carryover for AMT purposes.
Certain customers, who had AMT capital loss carryovers from 2010, may have filed an incorrect 2011 tax return. Those customers, who have an AMT capital loss carryover only from 2011, need to update their TurboTax datafile.
TurboTax has fixed this issue.
How to tell if you may be impacted
- You transferred your 2010 TurboTax return to the 2011 TurboTax product before May 24, 2012 AND
- Your 2010 federal tax return included a Schedule D with an amount greater than zero on line 16 AND
- That 2010 federal tax return also included Schedule D AMT that had an amount on line 16 less than zero.
If you are affected, you may have overpaid your federal tax and may need to amend your federal and state tax returns. See “You can make the corrections yourself” section below to make the corrections or let us do the work for you.
If you are not impacted by the above situation, see page two for guidance.
You can make the corrections yourself.
- To do it yourself, please follow these step-by-step instructions on:
- Amending your federal return and
- Amending your state return.
- After you make the changes to your tax return, you will need to mail a copy of:
- Your federal amended return to the Internal Revenue Service and
- Your state amended return to your state tax authority, if your state return is affected.
- Your printed return(s) will include instructions on how and where to mail it.
- If you need assistance, call us at the phone number in the email.
Or let us do the work for you.
- Please download and print this Authorization Form .
- Complete the form and fax it to us at the number printed at the top of the form.
- A TurboTax representative will contact you (within 15 days) when your corrected return is ready to be securely emailed back to you.
- You can print, sign, and mail the corrected return to the Internal Revenue Service and to your state tax authority if your state return is affected.
If you are not impacted by the above situation, let’s see if you need to update your 2011 tax return:
- You filed your federal tax return prior to May 24, 2012 AND
- Your 2011 federal tax return included a Schedule D with an amount greater than zero on line 16 AND
- That 2011 federal tax return also included Schedule D AMT that had an amount on line 16 less than zero.
If the above is true, you do not need to amend your 2011 tax return however you need to update your 2011 tax return so that the correct amounts will be carried over to your 2012 tax returns.
If you used TurboTax Online product, just open the tax return and save.
If you used the TurboTax CD/Download product, you need to update the product. Open TurboTax and go to Online and click Check for Update to update your product.Then open your federal tax return and save.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the Federal 2011: Loss Carryovers.
