Ignoring any errors that the tax software you are using gives you will result in you not being able to E-file.
Given that wash sales RARELY have this type of information ever given in such small dollar amounts, systems are not prepared to properly digest the information (most all tax software systems and I've worked on most all of them). Therefore, depending on your total taxable income thus far, I would try to enter a minimal amount for this wash sale (since you stated that the system is not accepting a zero dollar value in that field) that does not affect your tax rate (effective tax rate calculated in the system). For example, if $5 does not push you into a higher tax bracket or reduce you to a lower tax bracket, then it has no effect on the outcome and might solve the problem. I did try to come up with the same scenario that you are experiencing, but given that I do not have all information, it is not making any difference what I enter or do not enter. I do hope this resolves the hold-up.
Alternatively, you can do this given the following:
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 would 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.
