I am also struggling with the same issue.
I tried reaching out to Robinhood and explained them by the issue by providing all the details, but today I got a very standard reply from them. Can anyone please suggest, what should I do next? Will tax professional be able to help with this, as there are lot of transactions through out the year and combing through all these seems to be a daunting task. :(
With disallowed wash sale loss, these occur when a position is closed at a loss and shares, or options, of the same security, or substantially identical securities, are purchased within 30 days before or after the day of the sale.
In this case, if you purchased securities 30 days before the sale or after the sale, it could result in a disallowed wash sale.
When a disallowed wash sale occurs, the loss is added to the cost basis of the replacement lot and the holding period is subtracted from the acquisition date of the replacement lot, to make a new holding date. Note that this can cause the term to change from short term to long term in some cases.
As you saw, you can find a list of your wash sales in box 1G of your 1099 tax document. We’re not authorized to give tax advice, so for specific questions on wash sales and how to file your 1099 tax document, we recommend speaking to a tax professional.
