Turbo tax does not allow negative numbers in 1099-B box 1d

[keebin_tax]

@canuck97 I use TD Ameritrade. They were quick this year - I got the 1099 about 1 1/2 weeks ago.

No update yet on the ticket that I opened

[jessie3h]

I imported my 1099-B directly from my broker as I have 950 transactions. When doing the check, TurboTax found 96 of these negative number "errors" and is prompting me to adjust them one by one (see picture). Is there a way to adjust it from this screen? Or should I wait for TT to fix this bug?

[canuck97]

@jessie3h 

I personally don't know a way to fix it.   Other people on this thread have suggested entering summary data instead, I say lets get this feature to work as intended.   We pay good money for turybo tax and it should work as intended.  Please contact support and report this as a problem.  The more people that report it, the better chance we get it fixed.   This infuriates me that this was fixed last year and now the problem is back.  Fill out a request at support.turbotax.intuit.com/contact

This will eventually take you to a page with the phone number and a support ID.   And please update this thread with status on your support request.

Thanks.

[micahw352]

The TT support just told me to inverse it...?

In cost basis put the negative value as a postive and in sale proceeds as 0 

Not sure about that

[ameunier16]

This did not work. I'm trying to enter negative proceeds from an options sale. When I leave 1d blank it just lets me continue and enters a zero when the transaction is done. 

[quantbone2020]

Service rep talked to an IT specialist, and they said that there will be a "huge update" come 2/11 regarding this. I'm having the same issues with my TD Ameritrade account. I highly recommend anyone who has this issue call in ASAP and call in to report it. I am not highly confident this update will happen on 2/11, so we should all call in and report this, which would add more pressure for him to adjust the software appropriately. It's absurd. 

[canuck97]

@quantbone2020 

 That is great news.  please let me know your experience when you test the new software. Be aware that when I first reported this problem last tax year ( and it was fixed in two separate updates ) that there were really 2 problems:

1) you couldn't interactively enter negative values in box 1d

2) when you imported the 1099 from the brokerage any entries that had negative values in box 1d were changed to positive values causing gross errors for reported gains/losses

I wont have brokerage statements from Etrade until Feb 16 but I will test ASAP and post my findings here.

Thanks!

[taxking]

I found that if you put a zero than it affects your net short term gain/loss #.  There has to be a fix for option traders

[taxking]

i'm having the same problem and the system will not let your efile when this error is present.  Gets you caught in a loop.  Anybody with solution>>>

[canuck97]

@taxking 

Did you report it to their support?  We need to have as many people as possible report this so it gets some priority for being fixed

[AnnetteB6]

There has been a change by the IRS starting with the 2020 tax returns that will reject any return filed with a negative number reported in the proceeds or cost basis fields for Schedule D.  TurboTax is flagging these situations ahead of time before the return is filed in order to prevent the IRS rejection.  Some brokers are still using the old convention for reporting negative values and have not updated their reports to match the IRS.  

The error message reported by TurboTax is telling you that the number entered cannot be negative.

Gains from expired options are reported by entering the gain amount in the proceeds column and no amount in the cost basis column.  The end result here would be positive. 

 Losses from expired options are reported by entering the loss amount in the cost basis column and no amount in the proceeds column. The end result here would be negative. 

 No negative numbers should be entered in either the cost basis or proceeds fields.  

If negative numbers have been imported through your brokerage statement, you will need to edit the entries to make the correction.  

[lwarner32]

Thank you for the clarification. This makes sense. But will there be an update in the near future to address this automatically? I'm also getting this error when importing from TD. I'm not in a hurry to send in my taxes. I'd just like to know if this will be fixed when I come back to it in a month.

The main reason I use tax prep software, and especially the import feature TT offers for TD, is because I'm not comfortable inputting the numbers by myself (not to mention the nearly hundred entries it would take). Could I correct these errors myself as you suggest above? Sure, probably, but then that would defeat my main purpose for using TT in the first place.

Please let myself (and others) know if/when an update will be issued!

Thank you!

[canuck97]

@AnnetteB6 

Thanks for the info.   Assuming this is true and Etrade is still reporting the "old way" ( I won't have the forms until Feb 16 to check ) then this would mean I have to contact Etrade to have them correct the 1099B.   

Is there some IRS documentation that I can point them to so that I can easily convince them their form is in error?  

It would seem that turbo tax would have a relationship with all the major brokerages to sync up any changes from tax year to tax year.

Thanks in advance

[canuck97]

@lwarner32 

Did you try and contact TD Ameritrade and let them know that turbo tax said there 1099B is incorrect and if they plan to create a new statement.   It would be interesting to hear what they say from their side.   They must have contacts at turbo tax that they can call and hash this out.

[DaveF1006]

Canuck97, please refer to this IRS link for further guidance.