Tax Tips: Be on the Lookout for Tax Deduction Carryovers

Deductions or credits not used fully one tax year that may be eligible to be carried over into future years include:

  • When you have a net operating loss
  • When your total expenses for a permitted deduction exceed the amount you’re allowed to deduct in a given year
  • When a credit you qualify for exceeds the amount of tax you owe in a year
  • Adoption tax credits
  • Foreign tax credits
  • Credits for energy efficiency

Track these (or have your software do it) so that you don’t forget them from one year to the next.

* This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from Credit Karma6

Footnotes and Sources

  1. Credit Karma, December 9, 2020