We are filing married filing separately but last year filed married filed joint and I filled out the joint just to make sure we save. The amount we save on state taxes greatly exceeds the additional amount of federal taxes. As of 2024, our state now requires both returns filed with the same status.
In 2023 My wife had a disallowed loss from a wash sale on private company shares. The wash sale occurred because she has to elect to sell shares 9 months in advance, and she vested (acquired) new shares 4/1/2023 and sold shares at a loss on 4/25/2023. The shares are all covered long term reported to the IRS.
The wash sale was not indicated on the 2023 1099-B but I believe I handled them correctly and didn't take the loss, but I'm allowed to add the disallowed loss to the cost basis of the replacement shares.
In 2024 She sold the replacement shares and needs to increase the cost basis for the replacement shares.
In TurboTax Premier 2024 for her MFS return:
It recommends itemizing each sale if you have adjustments. She has 19 sales because her 1099-B lists each vest of each grant as a separate sale. I enter each one individually.
For a sale with an adjustment I select "The cost basis is incorrect or missing on my 1099-B.
It asks about several situations, and I click None of these apply
Then I check I know my cost basis and need to make an adjustment, so I put the actual cost basis.
It never asks me for the reason for the adjustment code. I believe that it's supposed to be W for a wash sale and the adjustment is negative to increase the cost basis.
It appears to calculate the tax correctly but uses Adjustment code B on Form 8949 with the negative adjustment. Shouldn't this be W. I'm concerned that if I override the code that I won't be able to e-file.
For kicks, I also did the MFJ return and since we weren't going to file it but just use it to get the numbers for comparison. Instead of entering each sale separately, I grouped the sales and it did ask me for a reason for the adjustment and wash sale was a reason. I entered a negative number and it calculated it all correctly putting a W as an adjustment code on form 8949.
Should I just leave B or paper file with a W? Is this something that typically gets fixed in an update?
Thanks in advance
