Form 1099-B: "Accrued Market Discount Should Not Be Zero" Potential Bug?

[jacksonmajewski]

In the box "Sale includes a disallowed wash sale loss (code W). Amount (leave blank if all)" I am getting an error because TT lists this value as "0.". The correct amount for this box is "0.34", but TT is not allowing me to put a decimal, nor is it allowing me to leave the box blank, which would also work. This is extremely frustrating.

[maiden1134]

I can confirm this bug as I have the same issue. I have 2 wash sales with disallowed losses of .26 and .98 (both are less than $1). TT flags two errors for these wash sales and has them both listed as "0.". TT does not allow me to modify the boxes to put in the correct amounts.

[AnnetteB6]

If you would be willing to share a diagnostic copy of your tax file, it could be helpful to examine the situation in more detail.  

To do so, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.

Use these steps if you are using TurboTax Online:

• Sign in to your account and be sure you are in your tax return.
• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

• Select Online at the top of the screen
• Select Send Tax File to Agent.
• Click OK.
• Post the token number here.

@jacksonmajewski

@maiden1134

[rveldman]

I had the same error with a Wash Out amount of $0.03  (with Code W checked).

I am unable to alter the form 8949 worksheet amount.   I attempted to bump it to $1, leave blank, or uncheck the box.

I'm guessing the value cannot  changed because the information was downloaded directly from my financial institution.

[Yc6vo4c12Mmz]

@AnnetteB6  Same problem here. Tried to override the field, which allowed me to enter a new value, but the entered number was not retained. I also imported the data from my financial institution.

Sent a diagnostic file to TT with token: 735233

[rswang01]

Yes, I am seeing the same issue as well... not sure what to do at this point.

[rswang01]

OK, I just found a solution to this.  If you have a wash sale disallowed, you want to go into the individual entry in the invest income section and find the one that has the 0's.  Then completely remove box 1g for those entries that cause the issue then you'll be good to go! 🙂

[AnnetteB6]

The error messaging you are seeing with regard to the wash sale entries is a result of automatic rounding of the number imported from your broker or typed in by you.  If the wash sale adjustment is $0.49 or less, then it is automatically rounded to zero.  This type of rounding is allowed by the IRS.  Unfortunately, zero is not a valid value for this field -- thus the error message.

To resolve the issue, you can edit each individual transaction (although not from the screen in the review process) and delete the amount entered in the wash sale adjustment if it is $0.49 or less.  This will clear the error message.  

To do this, you will need to revisit the input section for the Form 1099-B transactions.  Use the following steps:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “1099-B” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to 1099-B”
• Click on the blue “Jump to 1099-B” link
• Click Edit beside the institution name
• Click Edit beside each transaction that contains a wash sale adjustment amount of $0.49 or less
• Delete the wash sale adjustment amount and click Done

If you have too many transactions that would require editing, you can consider deleting your imported information and entering a summary of the different categories of transactions reported on your Form 1099-B (short-term covered, short-term not covered, long-term covered, long-term not covered).  This would require you to mail a copy (not the original) of your Form 1099-B from your brokerage to the IRS within three days of filing your return.  The Form 1099-B would be attached to Form 8453, which will print with your return.  

@jacksonmajewski

@maiden1134

@rveldman

@Yc6vo4c12Mmz -- Thank you for sharing your diagnostic file.  If the information above does not help solve the issue, please tag me again and I'll take a closer look.