I lost a lot of money in the stock market last year, but like everybody else, can only write off $3,000 in tax year 2008. I'm used to writing off the rest of the losses in future years, but somebody told me that you can refile previous years' tax returns to account for the trading losses in 2008. Does anybody have first-hand experience of this? Is there anything else I should be warned about?
I've never done it for trading losses, but we did refile my wife's after we go married (she missed an education deduction for a couple of years). Don't forget that if you're carrying back your losses for previous years that you might want to refile state taxes as well. (More $$)