What to enter on the 1099-B "Worksheet"

Forum|Forum|5 years ago
February 12, 2021
1 reply
4 views

Hello Xmasbaby

You seem to be very knowledgeable when it comes to taxes, so I hope you can help me out.

I am using the Turbo Tax program and was done answering all the income questions, but when TT checked my return, I got the following message: "Form 1099-B Worksheet.. Capital gn (ls) adjustments/other info (25459W862 SHARES 500 BULL ETF 25) Accrued market discount should not be 0. Enter amount disallowed under wash sale rules, or leave blank if entire loss is disallowed."

I am uncertain what to do about this prompt because I never filled out any Worksheet. Some Turbo tax computer apparently did. My brokerage statement seems to indicate that all wash sale trades have been disallowed since they all seem to be under the "disallowed" column. However, I have two accounts under the same broker, and both have wash sales for the same stock, so I do not know how much, if anything, to list in the "worksheet".

Also, I also do not understand what a 1099-B "Worksheet" is, and I found no listing of such a form on the IRS website. Lastly, I completed a reform on TT last year but did not file the 2019 return, as I did not earn enough to file. However, Turbo Tax has calculated for me a "carry over" loss which ,apparently, is derived from my 2019 return. Since I did not file, could this be a problem?

All of this is very confusing, so I hope you can help by clearing up some of the above.

Thanks : )

de_prof2003Author

Level 2

The above was originally a message, and I forgot to delete the salutation. Sorry about that. Everyone is humbly invited to respond. Thanks : )

ThomasM125

Level 15

If the entire loss is disallowed under the wash sale rules, then you should leave the entry blank, not enter -0-. If you are unsure as to what the loss amount is, I'm sure if you called your broker they could help you with it.

The 1099-B worksheet is referring to a worksheet that will be available when you print out your return. TurboTax generates it and it is for your information and to be kept with your records, but not filed with the tax return.

The loss carryover could be from a year prior to 2019. If you had a loss carryover in 2018, it would be usable in 2020 if you did not file a tax return in 2019.

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

de_prof2003Author

Level 2

I spent some time looking into all this and I think I understand the issue now. The problem involves a single wash sale. The prompt I received from TT wants me check my broker's 1099-B to validate the amount disqualified and enter the correct amount. Well, the disqualified amount was literally one penny (0.01) and Turbo Taxes computers round all amounts, so, apparently, it comes up as a disqualified amount of zero. A disqualified amount of zero cannot be correct because one cannot disqualify a non-existent dollar amount, so they want me to add a "correct" amount. Of course, if I try to enter zero, it is not accepted on the worksheet. If I try to enter 0.01 or .01, such entries are not accepted either. If I leave the worksheet blank, the same thing happens, the error returns in the income wrap up. In effect, the TT online worksheet provided to me refuses to allow me to add the correct amount. So let me pose a different question to you. What can I do about this situation.? Please help or forward this question to someone who can. Thanks : )