From: Austin, Texas

Dear TaxMama,

I made a mistake on my 2003 Schedule D. My losses were greater than I reported.

Since I already took the maximum $3,000 loss for 2003, the only number affected is my capital loss carryover (not my 2003 Adjusted Gross Income). 

It doesn't look like there is a line to fill in on the 1040X for this situation. 

Should I attach an amended Schedule D and refer to it in the explanation of changes section instead?

After I submit an amended return for 2003, do I use my updated Capital Loss Carryover when preparing my 2004 taxes, or do I need any kind of acceptance of my amended return from the IRS?

Thanks for your help.

Jean

 

 

Hi Jean,

Yeah, you really should amend the 2003 return before you file 2004.

Yes. Prepare the corrected Schedule D and attach it to the 1040X. For the reason for filing - just explain that you omitted a capital loss and need to establish the correct capital  loss carryforward.

Then, using the amended 2003 Schedule D, prepare your 2004 tax return.

No, you don't need to wait to hear from IRS.

You've got it exactly right. I am so proud of you.

Best Wishes,
Eva Rosenberg, MBA, EA