To enter wash sales disallowed for your short term trading losses, follow the steps below. These directions will allow you to enter a value that will carry to box 1g. For a great overview, see: How do I enter a wash sale? or see the description here:
To edit wash sales in TurboTax Online, follow these steps:
- Click Federal from the left menu.
- Scroll down to Stocks, Mutual Funds, Bonds, Other and Review.
- Click the Review button by the stocks that need correction.
- Click the pencil icon next to the stock transaction at Review your sales.
- Continue through the next screens until you again are at Review your sales and reach Now we'll walk you through entering your sale details. Scroll down and check the box for I have more info to enter that I don't see here.
For TurboTax CD/Download, the instructions below do not require an override by using the "Capital g/l adj" page. instead.
To find this form, follow these steps:
- From the Forms Mode, click Open Form.
- In the Search box, enter Capital gn.
- Under Form 1099-B Worksheet, select Capital gn(ls) adjustments/other info and Open Form.
- A new window will open: Step 1: Add Capital gn (ls) adjustments/other info. Scroll to find the sheet for Capital g/l adj and select Next and Finish.
- In Part III Specific Adjustments, scroll down and check the box next to Sale includes a disallowed wash sale loss (code W). Amount (leave blank if all)
So manual manipulation is required. TurboTax should change their application so that no manual manipulation is necessary. Since that data is all there and reported on the 1099, it should be as easy as entering the data, or downloading the data in an appropriate spot, and then TT should enter the data and adjust any values they need to make. Also, when trades are numerous, like in the hundreds, it would take enormous effort to manipulate the data individual as advised. Also, typically when there are hundreds of trades, you just need to enter the summary data, and attach a brokers report of the individual trades, so in that case TT should have a way to enter the summary data of wash sales. So really this is a deficiency in TT.
To enter Wash Sales Loss Disallowed, click on the box that says: "I need to adjust my total cost basis" and choose option "W" and also put the amount of the Wash Sales Loss Disallowed in the space that says "Total adjustments to gain (or loss)"