For Form 1099-B, why can't I submit a fractional number on Part III's box that says "Sale includes a disallowed wash sale loss (code W)". It won't let me put 0.02.

seanblonien · ‎February 22, 2021

My 1099-B says 0.02, and yet the box refuses to allow for decimal points. Is this intentional?

AnnetteB6 · ‎February 23, 2021

This issue is currently being investigated and addressed by the appropriate team. In the meantime, see the information below for two possible workarounds -- editing each individual transaction affected, or entering a summary of your transactions and possibly submitting Form 8453 and your documentation to the IRS.

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 (although not from the screen in the review process) 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

If you have too many transactions that would require editing, you can consider deleting your imported information and entering a summary of the different categories of transactions reported on your Form 1099-B (short-term covered, short-term not covered, long-term covered, long-term not covered). This may require you to mail a copy (not the original) of your Form 1099-B from your brokerage to the IRS within three days of filing your return. The Form 1099-B would be attached to Form 8453, which will print with your return.

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View solution in original post

AnnetteB6 · ‎February 23, 2021

This issue is currently being investigated and addressed by the appropriate team. In the meantime, see the information below for two possible workarounds -- editing each individual transaction affected, or entering a summary of your transactions and possibly submitting Form 8453 and your documentation to the IRS.

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 (although not from the screen in the review process) 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

If you have too many transactions that would require editing, you can consider deleting your imported information and entering a summary of the different categories of transactions reported on your Form 1099-B (short-term covered, short-term not covered, long-term covered, long-term not covered). This may require you to mail a copy (not the original) of your Form 1099-B from your brokerage to the IRS within three days of filing your return. The Form 1099-B would be attached to Form 8453, which will print with your return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

rlpjacket · ‎February 23, 2021

It seemed unclear from all the different community posts about this problem, so called TurboTax support. At first they misunderstood the problem and sent me this published article about a slightly separate solution.

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-fix-my-1099-b-negative-values/00/1949150

At least that one comes direct from TurboTax. The support rep seemed solid on the answer to just go to the individual entries where the "< 50 cent" wash sale amounts were tripping the system up and remove them. When I pressed for something official, the rep pointed me to this article here (that I'm replying to) where @AnnetteB6 replied. This did work and the system let me file after previous nights of frustration.

https://ttlc.intuit.com/community/business-taxes/discussion/re-for-form-1099-b-why-can-t-i-submit-a-...

TurboTax needs to put out something more official though!

Hope this helps!

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For Form 1099-B, why can't I submit a fractional number on Part III's box that says "Sale includes a disallowed wash sale loss (code W)". It won't let me put 0.02.