Form 1040D Lines 1a and 1b

[rscolejr]

Instructions on Form 1040D state that if totals for transactions are reported on Line 1b, then Line 1a should be blank. Turbotax reported the same information on both lines, therefore doubling up my capital gain loss. Same thing happened on Lines 8a and 8b. I downloaded the information from my broker. Something's wrong!

[DaveF1006]

it must been a mistake made from the import. You may need to manually adjust those entries.

[RayWL]

This did not work for me as I cannot figure out which transactions are being reported on line 1a or 1b without doing a complete audit of each entry - and I have too many to do that.   You are only supposed to use just line 1a or 1b on Schedule D, and the same goes for line 8a or 8b for long term gains/losses.  I even deleted everything and did a new import and got the same results.  Help desk said I should modify manually and file a paper return using the 1099B from my brokerage firm as attachments.   Really? I don't get it .  It worked perfectly last year, and I had 49 pages of Form 8949 since I do a lot of trading, but it went perfectly on import - but not this year.  I asked the help desk to escalate this issue because this is obviously a software bug, but when they called me back, they had still not escalated the issue.  I don't get it.

[AmyC]

Another option, type in 4 lines manually. Each lines is the total for that type of transaction. The IRS has the same brokerage statement and totals.

Enter the totals for each:

• short term covered
• short term non-covered
• long term covered
• long term non-covered

@RayWL

[RayWL]

I came up with the same idea, but the problem is that I then have to either prepare a separate schedule of all my transactions in each category (or attach copies of the 1099B for each account), enter the words "See Attached" for each category, and then file a paper return instead of filing electronically.  The IRS expects to see the details of the transactions on Form 8949 if there are any adjustments - even if those adjustments match what has been reported on the 1099B, so I have to use these attachments, but TurboTax does not allow you to attach PDF files for electronically filing to my knowledge.  If I am mistaken about that, then please let me know.  Ultimately your programmers need to figure out what is wrong with the program since it worked last year, even though I had many more transactions in 2018 than I do for the 2019 tax return this year.  Thank you.

[RayWL]

Forgot to mention that I also deleted the original import and re-imported only the 1099B information from TD Ameritrade to see if that fixed the problem, but it did not.  I got the exact same results.  Same amount reported on line 1a and 1b with really no clarity as to why, and then the rest of the transactions reported on the 8949 Forms with the totals flowing to line 1b and 8b.

[DaveF1006]

You might consider manually entering the transactions if the import doesn't work. You can summarize them rather than enter one transaction at a time.

[fanfare]

IRS requires details to be listed on Form 8949,
or on your own forms (e.g. consolidated 1099-B) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize, you have to mail the transaction details to the IRS within three business days of IRS accepting your tax return.
Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.

---
As an active investor, be aware that your category Box A sales without adjustments do not require Form 8949, so there is no reason to import or key in those transactions.
instead use the "enter a summary" option to put your numbers on Schedule D Line 1a.
--
If you have wash sales, it gets more complicated since those adjusted transactions have to be itemized on Form 8949 and the summary totals adjusted accordingly.

enter the wash sales on Form 8949, then use the subtotal results on the bottom of that form to know how much to subtract. Be sure to NOT check the adjustments box in the summary window.
--
Alternatively, if entry of Wash Sales is too tedious,
summarize and check the box for adjustments and enter the disallowed amount.
The summary will go on Schedule D 1b.
You will be making the mail-in election.

[fanfare]

If Turbotax is giving you the exact same sub-totals on Schedule D 1a and 1b, something is going very wrong with your import.

OP said: "You are only supposed to use just line 1a or 1b on Schedule D, and the same goes for line 8a or 8b for long term gains/losses."

That's not correct at all. But the chances of the exact same amounts on both lines is vanishingly small, IMO.