(1) What is the summary method? I have always used Turbotax generated Form 8949 based on Brokers' reports copied by TT online. and e-filed returns. See below.
(2) If I choose the alternative to make manual corrections how do I access the file (or Form) where I make the corrections? Will I be able to e-file after these manual corrections? There are various Forms and Worksheets in Turbotax and I am not familiar with these documents. Switch to the FORMS mode where you can make direct line entries to enter the corrections.
Summary option:
Open or continue your return (if it's not already open) and search inside TurboTax for the phrase stock sales.
- Select the Jump to link in the search results.
- Answer Yes to both Did you sell stocks, mutual funds, bonds, or other investments? and Did or will you receive a 1099-B form or brokerage statement for these sales?
- If you land on Here are all your 1099-B sales, select Add sales from a different brokerage. Then answer Yes to Did or will you receive a 1099-B form or brokerage statement for these sales?
- When asked how you want to enter your 1099-B, select I'll type it in myself.
- Select or enter your brokerage on the next screen and continue.
- On the following screen (Tell us about...), answer the questions until you reach the next screen. Select the second option, Let's enter a summary instead, and select Continue.
- You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and category. When finished, select Continue.
When you are done, you'll eventually come to the Here's a summary of your broker sales screen where you can edit, delete, or enter more sales.
You will have to mail a copy of your 1099-B to the IRS. TurboTax will produce a Form 8453. You print the Form 8453 and attach the brokerage statement(s) to it.
IRS requires details to be listed on a Form 8949,
or on your other forms (e.g. consolidated 1099-B) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize, you have to mail the transaction details to the IRS within three business days of IRS accepting your e-Filed tax return.(unless you have attached a PDF of the transactions details to your e-Filed return. TurboTax seems to be adding this feature now).
Only Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.
If you don't have a 1099-B from coin base (crypto) your sales category is C or F.
There is no exception for these categories.
