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Level 2
posted Feb 12, 2021 8:34:40 PM

Has someone been able to resolve the error on negative proceed on 1099-B? Before saying it's a mistake, it is not a mistake, it's short selling premium option trading

I have lots of option trades, which are a combination of spreads and shorting puts or calls. The trade always starts with negative proceed on all those, and that is how it gets reported on the form. How do we deal with this?

I am thinking of instead of automatic importing, I just input the total numbers and upload the form instead. Anyone  has had any success?

1 26 3107
24 Replies
Level 9
Feb 15, 2021 8:13:25 AM

You're correct, the issue with regard to the negative proceed on 1099-B isn't due to a mistake.  It's a rounding issue.  If the adjustment is $0.49 or less, then it is automatically rounded to zero.  This type of rounding is allowed by the IRS.  Unfortunately, zero is not a valid value for this field -- thus the error message.

 

To resolve the issue, you can still import the transactions but you'll need do delete anything that is .49 or less.  This will clear the error message.  

 

To do this, you will need to revisit the input section for the Form 1099-B transactions.  Use the following steps:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-B” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to 1099-B
  • Click on the blue “Jump to 1099-B” link
  • Click Edit beside the institution name
  • Click Edit beside each transaction that contains a wash sale adjustment amount of $0.49 or less
  • Delete the wash sale adjustment amount and click Done

 Here is more information about IRS guidelines and roundinghttps://www.irs.gov/publications/p17/ch01.html  

 

Computations

The following information may be useful in making the return easier to complete.

 

Rounding off dollars.

You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

 

Here is a TurboTax article that explains Form 1099-B Proceeds from Broker transactions

How Form 1099-B is used

The 1099-B helps you deal with capital gains taxes. Usually, when you sell something for more than it cost you to acquire it, the profit is a capital gain, and it may be taxable. On the other hand, if you sell something for less than you paid for it, then you may have a capital loss, which you might be able to use to reduce your taxable capital gains or other income.

Level 2
Feb 15, 2021 8:35:48 AM

Hello,

 

Thanks for your response. 

I don't have this problem. The error is not due to zero, it's because I have large numbers that are negative, i.e. -1400.

 

 

Level 2
Feb 15, 2021 11:00:10 AM

I’ve got the same issue as the other poster and for the same reason.

 

In our case, it has nothing to do with rounding.  The “Review” process states that the value must be zero or greater, which is not the case.

Level 2
Feb 16, 2021 6:57:02 AM

I agree. I have the same problems caused by selling put options and then buying them back at a loss.  ToddL99 posted a work around that works but I am concerned about changing the information that  I submit compared to what the broker is submitting even though the net effect is the same.

New Member
Feb 16, 2021 7:16:25 PM

Is there any way to do bulk edits? I have 150+ transactions that all had a disallowed wash sale loss <$0.50. Each transaction takes ~20 seconds to complete once clicking through if any additional situations apply to the sale. I'm not looking forward to taking 50 minutes just to delete a value for each sale.

Level 15
Feb 16, 2021 7:48:56 PM

search the forum and you will see there is a big brouhaha on these three issues

  • rounding
  • negative proceeds
  • tiny disallowed losses.

Level 15
Feb 16, 2021 7:56:40 PM

@m-v1 

 

If you have shorted an option you have collected premium.

that is a positive proceeds, not negative,

you can't collect or pay out negative dollars.

only column (h) can be less than zero.

 

--- ---

See what I mean ?

Level 2
Feb 16, 2021 8:49:00 PM

Obviously, but that is how it gets reported on 1099-B it has always been like that. It's out of my control. This is common when you have spread, one leg is positive and one leg is negative. 

 

I am thinking of deleting the import and just manually enter the total numbers and upload the forms and transcript for IRS. 

Level 3
Feb 16, 2021 8:53:53 PM

ReneeM7122 and other experts I've talked to at Turbotax either are not fessing up to the issue that Turbotax is purposefully blocking folks, common folk anyway, from using Turbotax when Fidelity especially but also etrade and any other brokerage reports a negative value on Form 1099-B for anything.  

Turbotax Online users are being told to take a hike again in 2021!!!!!!  Also, I was told it's not that they don't won't your money, it's that they can't fix it so that "Sales Price is not between the prescribed upper and lower limits" response stops common people from filing.  Someone from Turbotax even recommended that I try another service that has an H and an R in it, or just not use Fidelity or etrade or any other brokerage that refuses to provide 1099-B Worksheet data per IRS requirements.

Level 2
Feb 17, 2021 5:05:32 AM

@Steven101 

That’s just the thing...negative values for box 1d are clearly and plainly described in the 1099-B instructions as are some reasons the box might be negative.

 

This is a TurboTax problem.

Level 2
Feb 18, 2021 7:07:35 PM

Yesterday I was getting the same error for a negative number in the proceeds column of my 1099 B form that was downloaded from my broker.  Today I received an update to my Turbo Tax and the error has been fixed.  I still have the negative number for short Put transactions but it does not see it as an error.  So for those of you who have had this error get your updates.  This was as of today (February 18). 

Level 2
Feb 19, 2021 9:39:31 AM

2 Days ago I was getting this same error.  Yesterday ( Feb 18) I got an update to TT and after the update I no longer get this error even though I have negative amounts in the proceeds column from short put transactions.  I download from my broker (Fidelity) all transactions.

Intuit Alumni
Feb 20, 2021 1:56:44 PM

Please see the TurboTax FAQ below for instructions on how to fix these negative values:

 How do I fix my 1099-B negative values?

Level 3
Feb 20, 2021 6:49:13 PM

Some experts have magical ways to fix Turbotax's glitch which they blame both the IRS and Fidelity or your brokerage or anyone else they can.  But do common folks like me really have the wherewithal to fix Turbotax refusal to follow IRS and brokerage standards?  The real issue is why won't Turbotax just fix it.  When I've used Turbotax Online before, I enjoyed splash announcement "prepare to be amazed" as Turbotax load all the data automatically from Fidelity.  But this year it's just irritating after I've tried it three times and TT always either inserts an automatic negative zero value or refuses to leave a line blank that should be left blank.  Now it seems someone from Turbotax says the solution is to print it.  I'm not sure that the IRS is going to enjoy that especially since the IRS and FIdelity have made it clear that this is a Turbotax decision to create this glitch with negative values and to make it unfixable by the average user online and to maintain their blame game or tell us ways to fix it ourselves or take a hike or wait.  Which is it?  Wait to April?  

Level 2
Feb 20, 2021 7:51:49 PM

I now get a different error, which says another trade needs acquired date, which should be various. TT randomly picks some of the various dates and not all... it is very frustrating. I am really thinking of using freetaxusa.com with total numbers and just mail all the transactions to IRS. What is the point of dazzling me if you keep crashing on me? 

Expert Alumni
Feb 21, 2021 5:52:25 AM

There is a procedure for entering Various into you investment transactions.

  1. Open (continue) your return if it isn't already open.
  2. Income & Expenses
  3. Scroll to Stocks, Mutual Funds, Bonds, Other
  4. Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2020?
    • If you see Here's the info we have for these investment sales, select Add More Sales.
  5. Answer Yes to Did you get a 1099-B or brokerage statement for these sales?
  6. At Let's get your tax info, choose how you want to enter your 1099-B (type it in yourself)
  7. Select the pencil to work on the transaction
  8. In the date area there are two bullets.
    • On one Date, and
    • Something other than a Date
    • Select Something other than a Date
    • There is a drop down menu for Various.

@m-v1

Level 2
Feb 21, 2021 8:38:30 AM

I know all that, but I also have 1000 different trades half of which have various opening date. Even when I changed some to various, turbotax still showing the error. And since I have so many trades, the website keeps crashing. And before you say clear my cache and cookies and all that, I have done it. I'll wait until end of month, if I see no improvement, I'll take my tax somewhere else.

Expert Alumni
Feb 22, 2021 8:33:27 AM

An alternative is to post the summaries.

 

Your brokerage statements should include a summary of your transactions, grouped by sales category, for example, "Box A short-term covered" or "Box D long-term covered." You'll enter the summary info instead of each individual transaction.

  1. Open or continue your return (if it's not already open) and search inside TurboTax for the phrase stock sales.
  2. Select the Jump to link in the search results.
  3. Answer Yes to both Did you sell stocks, mutual funds, bonds, or other investments? and Did or will you receive a 1099-B form or brokerage statement for these sales?
    • If you land on Here are all your 1099-B sales, select Add sales from a different brokerage. Then answer Yes to Did or will you receive a 1099-B form or brokerage statement for these sales?
  4. When asked how you want to enter your 1099-B, select I'll type it in myself.
  5. Select or enter your brokerage on the next screen and continue.
  6. On the following screen (Tell us about...), answer the questions until you reach the next screen. Select the second option, Let's enter a summary instead, and select Continue.
  7. You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and category. When finished, select Continue.

When you are done, you'll eventually come to the Here's a summary of your broker sales screen where you can edit, delete, or enter more sales.

 

You will have to mail a copy of your 1099-B to the IRS.  TurboTax will produce a Form 8453. You print the Form 8453 and attach the brokerage statement(s) to it. 

 

Your Federal tax return goes to a different location depending on the state that you live in.  See this list to determine the location for you.

 

 

Level 2
Feb 22, 2021 12:08:39 PM

I believe you are missing the point and the reason we pay for Turbo Tax Premier.

 

I could manually enter over 200 sales entries for each lot I sold.   Then, I would not buy turbo tax.

 

After contacting the IRS they referred be to below and that it is “NOT” ok for the amount on my tax return to not to MATCH my 1099B except for rounding of the final amount.

 

“If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding and only round off the total.”

 

So if The turbo Tax Premier program Intuit sold me and Claims to be 100% accurate cannot do basic addition and subtraction than round the final amount so that it at least approximates what the Brokerage account is reporting to the IRS Please refund my purchase price for your product and I will use another companies product.

 

Thanks

Expert Alumni
Feb 22, 2021 12:17:15 PM

Customers may have received a 1099-B form reporting negative proceeds. After entering the form into the TurboTax Program and trying to e-file, their return may be rejected or are unable to e-file because of the negative proceeds that were entered.

 

The negative proceeds on the form are likely accurate. We are partnering with the IRS to change this situation and expect them to update their rules later in the season.


There are three options customers can take in this situation. Please see the article How do I fix my 1099-B negative values?

 

 

[EDITED |  2/26/2021 1:37pm PST]

Level 2
Feb 22, 2021 12:40:00 PM

Exactly.

 

Well I got tired of all the errors. I was playing around last night, and deleted all the 1099 I had, and left one to see how the review goes.  This time the review showed me an error in regards to acquired date for one of the options. Of course it was already "Various". After that I took my money and went to TaxAct, and imported the ones that they allowed, and the rest used summary. There were a lot of negative numbers btw, and no problem occurred. 

And at the end they'll ask you to upload the PDF of those summary total transactions. Filed and already was accepted by IRS. 

 

What a waste of time.

Expert Alumni
Feb 22, 2021 12:58:11 PM

The issue has been submitted and is currently under investigation.  Please click on the following link and sign up for an email notification when it's fixed.  

 

1099-B negative

 

A Form 1099-B is issued to report the proceeds from your stocks and bonds transactions.  The transactions will generate either a long term or short term capital gain or loss depends on how long the stocks are being held.  The amount will be reported on line 7 of your Form 1040 along with a Schedule D and Form 8949.  

Returning Member
Feb 25, 2021 8:30:09 AM

Turbo tax allowed me to use negative proceeds, did not receive error message. They e-filed my returns, but both state and federal were rejected.

Level 2
Feb 25, 2021 8:32:05 AM

I can confirm today that I used the total numbers instead of individual trades, and attached the 1099B transactions, my refund was accepted. I used TaxAct.