Q. Section 1256 does NOT get split apart and reported 60 on Long term and 40 as short term either on 1099 or on Sch D? Why. gain/loss from 1256 contracts must get entered on form 6781. there it will be split 60/40 and transferred to Schedule D lines 4 and 11. if you enter into straddles, they may require special reporting on the form
Q. Section 1256 has its own reporting? see above
How do I correct this in TT CD version. Under wages/income then investment income then Contract and Straddles then only click 1256 contracts (I assume?) then use total gain or loss or individual trades? not sure which one to choose? in search box type 6781. a link to the form will open. click on it. if you used only 1 broker the net goes on the line with broker's name. read the 6781 instructions so you understand reporting
https://www.irs.gov/pub/irs-pdf/f6781.pdf
I need to file Amended Return now. Any pros and Cons of filing amended return either as paper or electronic? I have lots and lots of pages in my Tax return. too late to e-file and you must wait until the original return is fully processed to amend and then paper file the amended return. .
Q. If I choose amended electronic version, do I need to send some proof or documentation of these 1256 Contract or just wait and see if IRS want it. Turbotax will print out the required forms. send nothing else. probably the only forms will be 1040-X schedule d and form 6781
Q. On brokerage 1099, where 1256 are listed, at bottom it does says that they report totals gains and losses from 1256 contract to IRS. Why did even IRS accepted my tax return if it had missing information. When you e-file only a few crucial things are checked. if everything could be checked immediately it wouldn't take the IRS more than 7 months in some cases to issue a refund. It is your responsibility to make sure the return is complete and accurate. Turbotax only guarantees the accuracy of computations not that the data is accurate or complete
Q. I had overall losses from 1256 Contract (and I assume that 's why my return was accepted) as I was at dis advantage! Now tax refund has increased a little bit. How do I apply new increased refund to next year tax?
now another issue arises since there is a net 1256 loss election which in some cases will allow carryback of the loss (only applicable if there is a net capital loss)
Lets say in my original return my refund was $1000 and I applied that amount to 2021 taxes. Now I am getting additional $100. In amended return, in Apply refund to next year, should I enter $100 or $1100. TT is guiding me to enter $1100. I thought $1000 I already entered in original return and now I should just enter $100?
only the additional overpayment from line 21
