Get your taxes done using TurboTax

Wash sales are one of the harder things for reporting. In this case, you are saying that your 1099-B is wrong. That is certainly possible. You have the records and we don't, so let's just assume you're right....

You have two options. First, you can try to get your broker to issue a corrected 1099-B. Sometimes the errors are systemic and they do that without asking once they find the problem. Sometimes you will have no luck at all.

You can still report the correct information. However, you will want to carefully document what is wrong and what is right (instead.) Note that in the TT interview there is a specific question asking if any of the information on your 1099-B is wrong.

The other possibility, of course, is that you actually had a wash sale and your brokerage correctly reported that.

From google: "The wash sale rule prohibits taxpayers from claiming a loss on the sale or other disposition of a stock or securities if, within the 61-day period that begins 30 days before the sale (generally, the trade date) or other disposition, they: Acquire the same or “substantially identical” stock or securities;..." sourced from https://privatebank.jpmorgan.com/nam/en/insights/wealth-planning/for-your-year-end-tax-planning-bewa.... So basically if you sell stock (etc.) at a loss and rebuy it within 30 days before or after, your loss is deferred until you sell the subsequent purchase. You didn't lose the loss because it gets transferred to the new position, but you don't claim it on the sale in question. It's called a "wash" because you don't get a gain or a loss on that first sale, i.e., it all comes out "in the wash ;-)".