Carry Forward Losses
What we show, What we don't, and Why
The Quick Answer
TaxStatus data and reports are generated directly from IRS-sourced information. The IRS does not track a running carryforward balance.
What we can show is whatever the taxpayer reported on a filed return. We can confirm what was reported historically. The forward-looking number depends on worksheets maintained by the taxpayer and/or their tax preparer. Any calculated values are estimates based on taxpayer-reported values rather than validated figures from the IRS.
Why This Is Complicated
The IRS files have no "carryforward ledger" that specifically reports how much loss a taxpayer has remaining to carry forward. The only place a carryforward is visible is on the Tax Return Transcript as values the taxpayer provided, and only for the year it was used, not the year it's rolling into. The amount carrying forward to next year is computed on a Capital Loss Carryover Worksheet, which is never filed with the IRS.
Two more caveats worth knowing:
- The Tax Return Transcript only reflects the original return as filed. If a carryover was corrected via an amendment, the IRS does not update those figures on the transcript.
- The IRS has reshuffled transcript line labels over the years. If you have questions, it is worth looking in the historical transcripts under Schedule D to confirm how the information is presented.
Where can I obtain accurate carryforward amounts?
Many people with carryforward losses also engage a professional tax preparer or CPA for assistance with filing their annual tax returns. This tax professional is the best source to obtain accurate carryforward values for a given client.
Related Articles
- IRS Transcripts - The tax return transcript shows the carryforward amount the taxpayer reported on the filed return (i.e., what came in from the prior year). It does not show what carries forward to next year.