Capital Loss Carryovers

A capital loss carryover occurs when your capital losses exceed your capital gains in a given tax year. While the IRS only allows you to deduct up to $3,000 ($1,500 if married filing separately) of net capital losses against other types of income annually, any unused losses can be carried forward to future years.

The carried-over losses can be used in subsequent years to offset capital gains or to reduce other income up to the same annual limit. This process continues year after year until the total loss is fully utilized. You report and track these carryovers using Schedule D (Form 1040).

Use the below IRS worksheet to compute your 2024 capital loss carryovers.