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

[kimchu58]

There are at least two threads on this form discussing this issue, the other under:.

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-turbo-tax-does-not...

I opened a case with TD Ameritrade and according to their tax department, they have not been told by IRS to not use negative Proceeds for their 2020 1099B reporting. 

Some forum members who may be employees of Intuit commented that IRS have told them Taxes will be rejected if the taxes are filed with negative Proceeds and offered a manual workaround.

If IRS did indeed communicate that Tax cannot be filed with Negative Proceeds to Intuit, at least share the communication notes with us so that we may go back to our Brokers with this new information for 2020.  Otherwise, it's "finger pointing" and we, as tax filers are put in the middle.

Hopefully Intuit is working with IRS to resolve this between them and the brokers.

[canuck97]

just chatted with someone on Turbo Tax Live, and the support person I had "Oscar"  said that several people have reported this and that TurboTax is working on a fix with the IRS ( the IRS has to change their side too, so the efile is not rejected ).   If that is true, and they acknowledge its a problem and they are working on a fix, why the hell can't they post something on this forum and let us know?!?!?!

[TheRealTax2]

Thanks for the update. Ill amend my return after the fix. I wish TT would of told us to just wait for the fix instead of creating extra work. At least amended returns can now be sent electronically.

I just checked the 1099-b worksheet summary totals for proceeds and basis reported to the IRS in TT after the recommended changes and they are different from the original 1099-b. 

This reminds me of the Tracy Morgan superbowl commercial about being pretty sure the recommended changes would work. 

[quantbone2020]

@canuck97 

I talked to a TT rep around 1-2 weeks ago, and she told me that there was going to be a software update on 2/11 to address this issue. I have not seen any updates yet, unfortunately 

[Anonymous]

Just adding in another person effected by this. I had this error out on my 'final review' stage, and broke any way to view or edit my tax return. I was able to call support and remove the 1099-B, but when retrieving it from ETRADE again, I see the negative numbers. I assume it will break again if I attempt to complete it and will keep monitoring this thread for updates.

And yea, this is pretty frustrating given we're paying a good clip to have things "simplified" for us. Not just that...but a really poor rejection/error code. If negative numbers break something, put out a warning and give us some info. Having to go to the forums to figure out what is going on is a poor user experience.

If you can't get the basics right, including error handling, no way am I going to trust you with larger issues (or buy your more expensive services).

[DaveF1006]

Has anyone tried these particular steps to get this to work? To be able to post a negative value to form 1099-B box 1d follow these steps.

1. Select the option for a 1099-B
2. Select to type it yourself
3. Enter Bank
4. I'll enter one sale at a time
5. Enter the stock data and leave 10d BLANK
6. When you hit Continue you will get a RED error message
7. At the bottom of the screen select Allow me to continue with incomplete information. [Continue]
8. Any less common items will be blank.  Select Done
9. No this is not employee stock
10. Select the last item An adjustment is required for reasons not already covered.
11. Enter the negative number that you had in Box 1d.
12. This will complete the transaction.

[Steven101]

Turbotax Online users are being told to take a hike again in 2021!!!!!!  Also, I was told it's not that they don't won't your money, it's that they can't fix it so that "Sales Price is not between the prescribed upper and lower limits" response stops common people from filing.  Someone from Turbotax even recommended that I try another service that has an H and an R in it, or just not use Fidelity or etrade or any other brokerage that refuses to provide 1099-B Worksheet data per IRS requirements.

[Anonymous]

I can concur - any plan for TT to fix this issue ASAP?

Thanks,

[georgep]

Why it says this is solved? What is the solution? In this point there is no TTX update for this issue

[weilbrej]

Can confirm this is still an active issue- looking to file soon. Will affect my stimulus payout because of lost wages from COVID. 

[dogleg]

I will add my voice to the call for an immediate post from Turbotax to provide a timetable for the fix on this simple issue.

[Anonymous]

you guys crack me up.  This is not a "simple" issue.  

[dogleg]

IRS instructions on the relevant forms consistently ask for negative values in parenthesis. Are you suggesting the IRS has failed to update their instructions, and only Intuit--but not the brokerages--is privy to the true requirements? It is trivial to translate the negative value entered/imported by the user into parenthesis on the PDF and efiled (XML) forms.

[Arzakon]

That is untrue, the IRS guidance for the 1099-B is consistent, but is not for other relevant forms/fields, the key one being 8949.

The IRS instructions are for negative numbers in parentheses for 1099-B, the form given to you by your brokerage.  Your brokerage is following the IRS guidance they are given.

TurboTax doesn't fill out a 1099-B, they use values from it to complete your 8949.  Instructions for 8949 do not say to enter negative values in parentheses (but don't explicitly bar it either).  They are being instructed by the IRS that they will reject filed returns with a negative proceeds value.  Intuit is following the IRS guidance they are given.

So while there are a number of ideas on how you can fix it yourself such as summarizing or switching the negative proceeds to zero proceeds and increasing the cost basis Intuit is likely waiting on more feedback from the IRS on their ambiguous instructions that have caused before coding that translation, potentially triggering audits, only to have the guidance changed again by the IRS.

[Kurt58]

I just did an update to my turbo tax file and after it completed, the error issue is fixed within my return.  I can enter negative numbers in the proceeds box for my options trades  and I get no error messages any more.  fyi