No, it's definitely not your fault. The wash sales error is due to rounding. If a wash sale adjustment is $0.49 or less, then it is automatically rounded to zero by the software. This type of rounding is allowed by the IRS but unfortunately, zero is not a valid value for this field on the 1099-B form, so it causes an error. To resolve the issue, here is a solution that might work for you instead of mailing. You can edit each individual transaction and delete the amount entered in the wash sale adjustment if it is $0.49 or less. This should 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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