I have worthless stock because of bankruptcy that I need to amend on 2020 tax return but instructions are confusing. I do not have 1099-B.

You can use your loss from the worthless stock. You can report it in the year they are deemed to be completely worthless. This usually happens when a company stops doing business or files bankruptcy.  You should be prepared with your proof and retain it in your tax file.

 

The sales price would be zero and the cost basis would be what you actually paid for the stock and December 31st as the date of sale.  You should use the description as 'Worthless'.

 

To enter worthless stock as investment sales:

1. Open (continue) your return in TurboTax.
2. In the search box, search for investment sales then click the "Jump to" link in the search results.
3. Answer Yes to the question Did you sell any investments?
   • If you land on the Here's the investment sales we have so far screen, click Add More Sales.
4. Answer No to the 1099-B question.
5. On the next screen, select the type of sale you had (stock, second home, collectible, land etc.) and click Continue.
6. Continue following the onscreen instructions to enter the sale.

Helpful Information:

• How do I deduct worthless stock?
• IRS FAQ -Worthless Security

Sorry I cannot find the "Jump to" link. 

I attached what I can see. When I tried to add stock sales it requires to have received 1099 form. In my case I didn't but I have notifications of bankruptcy and cost basis for all my shares. I am doing something wrong?

 

@rzertuchep 

 

When you enter Worthless Stock, enter the correct cost or basis, date acquired, and December 31 as the date sold.

 

Please follow these instructions to enter your worthless stock on your 2020 Amended return. 

1. On the OK, let's get a kickstart on your 2020 amended return screen, select Changing other info on my return and Continue. 
2. On the Here's the info for your amended federal return screen, click on the magnifying glass in the upper right hand corner.
3. Type worthless stock and click on the Jump to worthless stock.
4. On the Your investments and savings screen, scroll down to Add investments and Continue. 
5.  Continue with the onscreen interview until you get to the OK, let's start with one investment type screen and select Other (1099-S) and Continue.
6. On the Now, enter one sale for XXX screen, select the type of sale you had (stock-non-employee).
7. On the Description, enter Worthless Stock.
8. Continue with the onscreen interview until complete.

[Edited 03/07/22|1:31 pm PST]

 

This is an amendment for 2020. That is probably why the jump link is not working. Will try with the instructions to manually get there. I think what make the difference is to use  1099-S

 

Thanks!!

Because it appears that you need to amend your 2020 return, and if you are using TurboTax online, log back into your account.  From the Tax Home screen, scroll down the page to Your tax returns & documents, and click the drop down arrow to open the window.  Select 2020, and then click on Amend (change) 2020 return.  Respond accordingly to the pages that follow.  

 

@rzertuchep