Schwab multiple accounts -- but no way to access them due to the way TTax logs in to Schwab.

[StevenAntoch]

I got a notice from the IRS saying there were multiple instances of stock sales that were reported by Schwab but which I didn't file with the IRS.

The problem is that  my company uses Schwab. 

For the ESPP shares and Restricted Shares awards, they are deposited into one account (they call it the "Equity Awards" account).  The company automatically sells 25% of the shares to pay taxes up front.  Those sales (and the ESPP deposits) go on the  Equity Awards account's 1099.

Then those exercised shares get transferred into a 2nd "Individual Account" when I actually sell them.  This obviously is problematic.

Unfortunately, the way Turbo Tax is set up, It does not allow me to enter an account number, therefore, the only 1099 that gets downloaded is from the Individual account.

This sucks and is a royal pain in the ass to find out the hard way (from the IRS) that your software is not doing the right thing, not to mention the error prone nature of adding all these stock sales by hand in order to file an amended return.

Please fix this now.

[macuser_22]

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@StevenAntoch wrote:

Unfortunately, the way Turbo Tax is set up, It does not allow me to enter an account number, therefore, the only 1099 that gets downloaded is from the Individual account.

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It is not how TurboTax is set up, it is how Schwab provides imports.  Schwab only allows imports from your own personal account.  You can have more than one account with Schwab, but each account must have it's own login ID and password - Schwab goes by login, not account number.   TurboTax import only connects you to Schwab, once connected, the rest is up to Schwab.

[Anonymous]

 can you log into this second individual account? you need the login ID and password. if so, it can be imported, but this import must be done separately.  Please note TT's disclaimer  as to accuracy.     different brokerages have different methods for importing into TT if they offer it at all.     There is one where you need to import each account separately because to import you need the account # and a document ID # which is unique for each a/c.  

[StevenAntoch]

Both accounts are accessible from the same login.

[macuser_22]

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@StevenAntoch wrote:

Both accounts are accessible from the same login.

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The Schwab server for imports is separate from the Schwab web based server for your account(s).  What is accessible for import is totally controlled by Schwab.   Ask Schwab why it is not available.

You said: "my company uses Schwab" which implies that this is a company so Schwab might keep it separate if the accounts are in a different name or is not a personal account - again that is up to Schwab.   TurboTax will import all information that Schawb makes available for import.  TurboTax does not determine that - Schwab does.

[I personally have 3 Schwab accounts with a single log in and never have any problem importing.]

[StevenAntoch]

First, thanks to both of you for replying.

I tried to add a second login using the account number for the "equity awards" account, but this second account number is too long to fit in the entry form mask.  I have sent them a message asking how I can do this.

Hopefully, they will have an answer that is better than "type it in by hand".  This can't be that uncommon.  Tradestation lets me add the account number when downloading tax info.  I am surprised Schwab doesn't allow this, too.

Thanks-

[ehemmati]

Hello Steven,

Any luck with Schwab? I have the same problem filing my taxes this year as this is my first year with Schwab...

Best,

Ehsan

[StevenAntoch]

I ended up typing them into Turbo Tax manually.

[WendyN2]

You have two choices; 

A simple fix to this is, If you are able to extract your year end statement and it provides you with totals of S/T vs. L/T transactions (you might even have 4 different categories on your statement - depending on if basis was/was not reported to the IRS, so be sure to not miss any sections of the statement), you should separate them out yourself on a spreadsheet, tally up the information for each category of transaction, and enter as such. This is, making sure, of course, that the firm you use is providing you with cost basis and sales price as well as #shs per transaction.

You can also extract to Excel, but that takes more work than step one. What the IRS is looking for is the following:

1. Net S/T Capital Gains/<Losses> , based on purchase date, cost basis, sale date, and proceeds
2. Net L/T Capital Gains/<losses>, based on purchase date, cost basis, sale date, and proceeds

In short, each section of your statement that has a total that states "Has Been Reported to the IRS", will be treated as one transaction for taxability purposes. So, if you have 1, 2, 3, or 4 of these totals lines, then that would be the corresponding number of transactions you will have. Make sure that you do not include any section that starts with "Transactions NOT Reported to the IRS" as these are categorized already by your brokerage firm for you as non-reportable pieces of information.

ALSO, make sure you do not miss any dividend and interest income, Foreign Income Taxes Paid, etc., if your statement is all you rely on to report your information to the IRS. 

[WendyN2]

A simple fix to this is, @ehemmati - if you are able to extract your year end statement and it provides you with totals of S/T vs. L/T transactions (you might even have 4 different categories on your statement - depending on if basis was/was not reported to the IRS, so be sure to not miss any sections of the statement), you should separate them out yourself on a spreadsheet, tally up the information for each category of transaction, and enter as such. This is, making sure, of course, that the firm you use is providing you with cost basis and sales price as well as #shs per transaction.

You can also extract to Excel, but that takes more work than step one. What the IRS is looking for is the following:

1. Net S/T Capital Gains/<Losses> , based on purchase date, cost basis, sale date, and proceeds
2. Net L/T Capital Gains/<losses>, based on purchase date, cost basis, sale date, and proceeds

In short, each section of your statement that has a total that states "Has Been Reported to the IRS", will be treated as one transaction for taxability purposes. So, if you have 1, 2, 3, or 4 of these totals lines, then that would be the corresponding number of transactions you will have. Make sure that you do not include any section that starts with "Transactions NOT Reported to the IRS" as these are categorized already by your brokerage firm for you as non-reportable pieces of information.

ALSO, make sure you do not miss any dividend and interest income, Foreign Income Taxes Paid, etc., if your statement is all you rely on to report your information to the IRS.