The error messaging you are seeing with regard to the wash sale entries is a result of automatic rounding of the number imported from your broker or typed in by you. If the wash sale 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 edit each individual transaction and delete the amount entered in the wash sale adjustment if it is $0.49 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
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I'm having the same issues 5 times! Using Desktop Premier on a Mac and it will not let me edit anything. The instructions given take you nowhere on a Mac. I'm in the form and it will let me edit everything BUT the 0 entry.
Turbo tax does not allow negative numbers in 1099-B box 1d. If any of your transactions have a negative number, changing it manually to a 0 may not help clear the error.
Some brokers now reports losses of short options on 1099B as a negative number for proceeds in box 1d and a zero value for cost basis, rather than separate values for cost basis and proceeds that show a loss.
The broker explanation is: "We are now updating our reporting of short options on the 1099-B to reflect how the IRS is now requesting that these transactions be reported. In this new format, the cost basis and proceeds for short options is consolidated into Box 1d in a net amount."
To be able to post a negative value to form 1099-B box 1d follow these steps.
- Select the option for a 1099-B
- Select to type it yourself
- Enter Bank
- I'll enter one sale at a time
- Enter the stock data and leave 10d BLANK
- When you hit Continue you will get a RED error message
- At the bottom of the screen select Allow me to continue with incomplete information. [Continue]
- Any less common items will be blank. Select Done
- No this is not employee stock
- Select the last item An adjustment is required for reasons not already covered.
- Enter the negative number that you had in Box 1d.
- This will complete the transaction.
If this doesn't solve it, we would suggest removing the form and starting again. Sometimes something gets caught behind the scenes.