Entering code B in form 8949 Turbo tax Premier 2025

[ignoramus]

I have Premier version Turbo Tax 2025. I need to enter code B for short term stock sales. Unable to do so in the forms section. Please tell me how to do this.

[rjs · Accepted solution]

Do you mean that you have to check box B at the top of Form 8949, or do you have to enter adjustment code B in column (f) on Form 8949? Checking box B at the top of Form 8949 indicates that the sales reported on that page are short-term and the basis was not reported to the IRS. Adjustment code B in column (f) on Form 8949 indicates that the basis shown on the 1099-B is incorrect and you are making an adjustment to make the basis correct.

Entering investment sales in forms mode is very complicated and error-prone. That's why TurboTax strongly recommends using the Step-by-Step interview to enter investment sales.

If you need to enter sales with box B checked at the top of Form 8949, for the "Sales section" at the top of the screen where you enter the details of the sale, select "Short-term basis not reported to IRS (noncovered)."

If you need to enter adjustment code B in column (f) on Form 8949, on the screen where you enter the details of the sale, enter the basis that is shown on the 1099-B. Below the basis check the box that says "The cost basis is incorrect or missing on my 1099-B." A couple of screens later you will be able to enter the correct basis. TurboTax will enter the sale on Form 8949 with code B in column (f) and the appropriate adjustment to correct the basis.

[ignoramus]

Thank you, rjs.

The last paragraph was what I was looking for.

I had sold non-qualified stock options which were included in my W-2. And had to change the cost basis so that the gains would not be double counted.

I noticed that the adjustments have to be added to the difference between the proceeds and the cost basis. Turbo Tax does not allow a negative dollar amount in the adjustments. So the overall gain is going to be larger by adding adjustments. 

Is there a way to subtract the adjustments?

Otherwise, do I just increase the cost basis without adjustments?

[rjs]

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@ignoramus wrote:

Turbo Tax does not allow a negative dollar amount in the adjustments.

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You don't enter the adjustment amount. The screen in the TurboTax interview tells you to enter the "Actual cost basis," in other words, the correct basis. TurboTax will compare the actual basis that you enter to the incorrect basis that you entered from the 1099-B, and it will put the negative adjustment in column (g) on Form 8949.