The Tax Payer (without any cap loss of $3,000 out of total cap loss of $8,000 for 2019) has below taxable income for 2019...
You didn't tell us what the taxable income is. But here's how it works:
- Filing Status: Single
- Wages: $14,200
- Cap Loss: $8,000
- Other Non-Employment Income: None
- Standard Deduction: $12,200
- Cap Loss Allowed on 2019 T/R: $2,000
- Cap Loss Carryover to 2020: $6,000 ($8,000 - $2,000)
As explained in my response yesterday, Line 6 will still show -$3,000. Nevertheless, the actual amount that will be allowed and carried forward will be -$2,000 and -$6,000, respective.
Still an AllStar