I am using TurboTax 2022 Premier on Windows 10 and have an erroneously double counted short-term gain on both my already filed Federal and already filed Alabama tax returns.
My Federal return shows the same short capital gain on two separate copies of Form 8949. My return actually contains 3 of these forms, but the issue only involves two of them. A short-term gain of $6,020 is included on two of these forms, and the gain is double counted. The IRS has already deposited my check, yet this double counting caused me to make that additional payment when I should have received a refund. How do I fix this and get a refund?
The $6,020 is shown on a 1099-B from Vanguard in a section that indicates, “Report on Form 8949, Part I with Box B checked. Basis is NOT provided to the IRS.” I also have a Schedule K-1 (Form 1065) for this same holding, Shell Midstream Partners (SHLX), which I bought in 2021 and that was later acquired by another firm resulting in short term gain for me in 2022. Both the 1099-B and K-1 forms were imported into TurboTax.
This resulting double counting is evident on Schedule D and then Form 1040 on my federal return. It is easy to see that the same transaction appears twice on my Alabama Form for Schedules D&E (form 40).
One form 8949 has box B checked for short-term transactions reported on form(s) 1099-B showing basis wasn’t reported to IRS. This form includes a sale of 2,000 shares of Shell Midstream Partners LP. The data acquired is shown as 12/17/21 and the date sold is shown as 5/6/22. The proceeds are shown as 28,080 and the cost is shown as 22,060. The gain is shown as 6,020. Note that the three transactions shown on this form (the one with box B check) add up to 12,944. [12,944 = (6,800 + 124 + 6,020)].
A second form 8949 has box C checked for short term transactions not reported to you on Form 1099-B. This form includes a sale of 2,000 shares of Shell Midstream Partners LP. The data acquired is shown as 12/17/21 and the date sold is shown as 5/6/22. The proceeds are shown as 28,080 and the cost is shown as 22,060. The gain is shown as 6,020.
This second Form 8949 (with box C checked) shows only the Shell Midstream Partners, L.P., transaction. The $6,020 is counted on this form, and that appears to be the error, as the 1099-B from Vanguard indicated that it should be shown on a form with box b checked, which is not the case here.
The form 8949 with box C checked includes only the $6,020.
The form 8949 with box B checked also included the $6,020 in the total. [12,944 = (6,800 + 124 + 6,020)].
Schedule D shows both the amount from the form 8949 with box C checked and the form 8949 with box B checked.
The overall total gains shown on Schedule D line 16 also appears on Form 1040 line 7.
On my Alabama “SCHEDULES D&E (FORM 40)” the $6,020 is shown twice and the total at the bottom of that form matches the gains shown on the Federal Schedule D line 16 that also appears on Form 1040 line 7.
How do I fix this double counting and get a refund?
Thank you for your consideration!
