Enter it the same way you would if you had a 1099-B. When you start the investment sale (1099-B) interview, you will be asked ''Did you receive a 1099-B for this sale''. Say No. You will then be prompted to enter all of the pertinent information regarding the sale. This includes:
- A brief description of the item sold, such as “100 shares of XYZ Co"
- The date you bought or acquired it
- The date you sold it
- How much it cost you to acquire it - cost basis
- How much you received for it when you sold it - proceeds
- Whether your broker withheld any federal tax
The 1099-B helps you deal with capital gains taxes. Usually, when you sell something for more than it cost you to acquire it, the profit is a capital gain, and it may be taxable. On the other hand, if you sell something for less than you paid for it, then you may have a capital loss, which you might be able to use to reduce your taxable capital gains or other income.
- You pay capital gains taxes with your income tax return, using Schedule D.
- The data from Form 1099-B helps you fill out Schedule D and Form 8949 if needed.
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This article isn't helpful at all. This is a new issue for tax year 2020. This is extremely bad user experience. Not to mention frustrating.
Like @jgrosencrantz pointed out it does Not ask you whether you received 1099-B or not so this article from an expert is completely useless.
I understand that the tax laws have changed for 2020 (see link below) but the UI is very confusing to not only its users but Customer agents as well. I was on a call with someone who couldn't figure it out for 45 mins or so. She sent me a link that *will surely solve the problem* but did not. I feel like Turbotax is letting its customer be the QA. I don't think this part of the UI was ever tested.
Anyway here's the workaround:
When you add a Bank or brokerage make sure you enter fewer sales 1-4..this way it will allow you to enter every sales record manually.
For every sales record you have to select one of the 6 (or more) values for the required field Sales section. For @jrider4562 it could be Short Term did not receive 1099-B or Long Term did not receive 1099-B. Fill in other details like description of sales, proceeds, cost basis and the transaction dates and then save the record.
A small test you can do after you have saved a sales record is to go back to the record and check the code assigned to the Sales section. Refer to the Specific instructions section here https://www.irs.gov/instructions/i8949 to see if the right code has been assigned or not.
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Stocks, mutual funds, Bonds, Other
Follow the interview