PA Capital Gain not correct

[LaShaunA3]

We'd love to help you complete your tax return, but need more information. Can you please clarify your question?

[ed128]

I imported over 1000 Charles Schwab transactions. Federal Form 8949 lists 8 WASH SALES. I know PA doesn't care about Wash Sales- but my PA income looked too Low on Capital Gains (it showed as a negative !)

Also Fed Form 8949 shows 4 $1 gains- Do I NEED to Adjust them? (rounding errors?)

2 Totals d= 106,828 e= 120,947 g= 14,123 h= 4. 

(other 4 wash sales showed $0 gain)

[DaveF1006]

It depends.  Your PA capital gains look "too low" because Pennsylvania is giving you a tax break that the Federal government isn't. Since Pennsylvania lets you claim investment losses right away—but the IRS makes you wait if you buy the stock back (wash sales)—your PA taxable income will usually be lower than your federal income.

The three things to remember for your situation:

1. The Loss Discrepancy: The "negative" look is actually correct. On your Federal return, those wash sale losses were added back to your basis (increasing your taxable gain). For PA, you get to deduct those losses right now, which drives your gain down or into the negative.
2. The "Zero" Limit: While it's fine for your PA Capital Gains to show a negative number or $0, remember that PA does not let you use those losses to lower your other taxes (like your salary). If you have a net loss, you just pay $0 in tax on your gains, and the rest of the loss vanishes.
3. Ignore the $1 Rounding: Don't sweat the $4 difference from rounding. In a 1,000-transaction portfolio, the taxing authorities expect small rounding discrepancies. As long as your total proceeds match your 1099-B, you are in the clear.