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Capital loss limit: $10,000 → $3,000 this year

IRC §1211(b) caps the net capital loss you can deduct against ordinary income at $3,000 ($1,500 MFS). Unused loss carries over under §1212(b). $10,000 single → $3,000 + $7,000 carryover.

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Allowed this year

$3,000.00

Ordinary-income cap: $3,000.00

Carryover to next year: $7,000.00

IRC §1211(b) + §1212(b). Educational estimate, not advice. Confirm with the IRS or a CPA.

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U.S. FICA: $2,000 → $153 (SS $124 + Medicare $29)

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Capital-loss limitation against ordinary income

IRC §1211(b) lets an individual deduct a net capital loss against ordinary income only up to $3,000 ($1,500 if married filing separately). Unused loss carries forward under §1212(b). The dollar caps have been statutory since 1978 (no COLA). This is not a long-term capital-gains rate table.

With a $10,000 net loss (single): min($10,000, $3,000) = $3,000 this year and $7,000 carryover. With $2,000: $2,000 this year, no carryover.

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Formula

IRC §1211(b) ordinary-income cap

allowed = min(net capital loss, $3,000) | $1,500 if MFS

Net capital lossStatusAllowed this yearCarryover
$10,000Single / joint / HoH$3,000.00$7,000.00
$2,000Single / joint / HoH$2,000.00$0.00
$3,000Single / joint / HoH$3,000.00$0.00
$10,000Married filing separately$1,500.00$8,500.00
$1,200Married filing separately$1,200.00$0.00

What this page is not

This is not a long-term capital-gains bracket calculator (those rates need a COLA cite). It does not net short-term vs long-term lots on Schedule D, apply wash-sale §1091, or split the carryover's character under §1212(b). Enter the already-netted loss.

Common mistakes

  • Deducting the full $10,000 against wages in one year: the ordinary-income cap is $3,000.
  • Using $3,000 when married filing separately: the cap is $1,500.
  • Treating the unused $7,000 as gone: it carries over under §1212(b).
  • Confusing this with the 0% / 15% / 20% LTCG rates: those tax gains, this page limits losses.

On Form 1040, the allowed capital loss against ordinary income flows from Schedule D. The unused amount carries to next year's Schedule D.

No. IRC §1211(b) has used $3,000 / $1,500 since 1978. There is no COLA on this cap.

Informational estimate

Educational content, not tax advice. IRC §1211(b) + §1212(b). Confirm with the IRS or a CPA.