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Question
I married my wife last year. I’m filing a joint return. We each had a capital loss carryover last year. How do I combine our two losses in our joint return?
AI accountant’s answer:
Congrats on your marriage! When you file a joint return, you'll need to combine your individual capital loss carryovers from the previous year. To do this, first determine each of your separate carryover amounts from 2021. You can find these numbers on your individual 2020 Schedule D (Form 1040 or 1040-SR) and the associated Capital Loss Carryover Worksheet, if you completed one. Once you've identified each of your carryover amounts, simply add the short-term capital loss carryovers together, and do the same for the long-term capital loss carryovers. You'll report the combined short-term and long-term capital loss carryovers on your joint 2021 Schedule D (Form 1040 or 1040-SR) and use them to offset any capital gains you both had in 2022. Remember to keep track of any unused capital loss carryovers, as you may continue to carry them forward to future years until they are completely used up.
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