Your return, scored in plain language

Overall: Yellow

Reasonable basis with gaps. We can show you exactly what would move this to green.

Green

Yellow

Red

Blocked

Example cases

Every case below is a real committed audit packet. Pick one to see how we would score it.

Lot Reconstruction — Alternatives Emitted Transactions Loaded Yellow Specialist Review No Transaction Data Uploaded Transactions Yellow Review Resident Long-Term Gain Only Resident QD+LTCG Resident W-2 Only Resident IRA Deduction Resident HSA Deduction Resident Student Loan Interest Resident SALT Itemized Override Resident Schedule A Review

Transactions Yellow Review

Structured capital transaction input is present and the backend packet reflects an override-backed yellow review band after specialist review.

Reported capital netting differs from deterministic result

Yellow

Reasonable basis with gaps. We can show you exactly what would move this to green.

Reported treatment shifts from Reported ST 2000.00, LT 4000.00, net 6000.00 to Deterministic ST 1500.00, LT 4000.00, net 5500.00.

The authority we rely on

IRC Section 1222: Short-term and long-term capital gains and losses are defined by statutory holding period character.

IRC Section 1222: Section 1222 defines short-term and long-term capital gain and loss terms used throughout the capital-gains regime.

Schedule D Instructions: Capital loss carryovers should be tracked year over year and documented to the filed return.

Adverse authority - Schedule D Instructions: If a worksheet phrasing question conflicts with the statutory annual loss limit, the Code controls.

Available capital loss was not fully used

Yellow

Reasonable basis with gaps. We can show you exactly what would move this to green.

Reported treatment shifts from Reported net capital result 6000.00 and capital loss deduction 0.00 to Deterministic net capital result 5500.00 and capital loss deduction 0.00.

The authority we rely on

IRC Section 1211(b): Individuals may deduct capital losses only up to the annual statutory limit against ordinary income.

Schedule D Instructions: Capital loss carryovers should be tracked year over year and documented to the filed return.

Topic No. 409 - Annual limit and carryover: Topic No. 409 summarizes the annual capital-loss limit and carryover concept for individual taxpayers.

Adverse authority - Schedule D Instructions: If a worksheet phrasing question conflicts with the statutory annual loss limit, the Code controls.

Prior-year carryforward usage is inconsistent

Yellow

Reasonable basis with gaps. We can show you exactly what would move this to green.

Reported treatment shifts from Reported carryforward usage 0.00 to Deterministic carryforward usage 500.00.

The authority we rely on

IRC Section 1212(b): Unused net capital losses may carry forward to future taxable years for individuals.Schedule D Instructions: Capital loss carryovers should be tracked year over year and documented to the filed return.

Publication 550 - Capital gains and losses: Publication 550 explains capital gains and losses, including netting and reporting concepts relevant to individual investors.

Adverse authority - Schedule D Instructions: If a worksheet phrasing question conflicts with the statutory annual loss limit, the Code controls.

Signal is self-preparation software. You are the filer. The bands above are deterministic scores against the authority stack — not legal advice and not a preparer opinion. Signal does not prepare returns for compensation, does not e-file, and does not choose filing positions on your behalf. See terms.

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