TurboTax Early Rounding Issues creating LARGE variances between TurboTax Produced Return and Brokerage 1099-B Data

[vpeppen]

The strange thing is that they report call option trades with an ST gain directly on Schedule D, while if the trade resulted in an ST loss, they are reported on an 8949 A, although there is no adjustment to any of them. The IRS instructions are that both, call option trade ST gains and ST losses, are reported in the same way. So, why the different reporting?

[PlotinusRedux]

Warning:  The change in the Desktop version was only to the number displayed on the screen, not to the number actually reported on Schedule D and 1040 line 7.

To verify this if you had the rounding issue and on the Federal Taxes Wages & Income tab the number beside "Stocks, Mutual Funds, Bonds, Other" now matches your 1099-B, click Forms in the upper right corner and view the actual Schedule D and 1040 forms--at least for me, those numbers no longer match, and the actual forms use the old rounded number.

I also noted my total income and taxes due are exactly the same as before the update even though the screen *shows* my capital gains about $200 more than before.

I tried starting a entirely new return from scratch with the same results.

This is even worse than before--however it's going to calculate the gains, it needs to show exactly what it's going to report.

[DJG]

I'm using the Mac download version and have exactly same experience as @PlotinusRedux .  The capital gain showing on my screen during the EasyStep process is now essentially correct (i.e., almost identical to my 1099-B), but Form 8949 and Schedule D still show the incorrect/rounded figures.  

This is definitely worse! I never supported TT's decision to start doing all this transaction-level rounding, but at least it was clear what was happening and the tax forms TT generated matched what they displayed in the EasyStep process.  Now it seems like TT is intentionally trying to deceive users into thinking their tax forms will match their 1099-B, when that's not the case.  Very shady. Before I was frustrated but ready to move on. Now I'm legitimately pissed.   

[sfamsieg]

I checked my Schedule D after recent comments.

It looks like Schedule D number is still slightly wrong (as several weeks ago) despite imported 1099-B form shows correct total rounded values. It seems the issue wasn't fixed properly in reality and now it's misleading and actually worse than previously.

[dm47208tt]

Yep, previous enthusiasm replaced with dismay. Schedule D doesn't seem to pull from results generated as part of the 1099-B worksheets. I agree with @DJG and @sfamsieg, worse than previous. So much for "Great News! Your return has no errors." 

[RDavis2528]

Before stating there are still large variances or that Schedule D is not drawing from information included in the 1099-B Worksheets, I encourage everyone to START OVER. Don't just eliminate the imported data since there may be other imported bits that still remain. Delete the TurboTax data file for 2020 and start over.

I started over and as I've previously reported my Schedule D is off by only $2 ($1 each on Short-Term and Long-Term) due to the rounding. The 1099-B worksheets are showing to the penny from the imported Form 1099-B. The Form 8949 is showing all the Wash Sales.

I'm using TurboTax Premier CD/Download for Mac.

[JoshB1]

I just filed and left feedback for Intuit to fix their buggy software and stop wasting our time

Good luck to all! Just remember, the IRS still processing 2019 tax returns - :facepalm: 

[PlotinusRedux]

@RDavis2528 as I noted I did start over with a completely new return and the number displayed on the screen now matched my 1099-B, but the number actually on Schedule D and 1040 Line 7 was still the old number, around $200 different from what the screen shows now.  I'm using the Windows version.

[RDavis2528]

@PlotinusRedux after your post I went and checked again. Everything matches the 1099-B, Schedule D, etc and what I see on the screen is what is on the printed form. I'm not sure why yours is different. Did you delete the original TT data file prior to starting over? That's the only thing I can think of to explain a difference.

This is so frustrating. Thanks TT for "improving" something that was working correctly!

[DJG]

@RDavis2528 You've mentioned that your capital gains calculation is only $2 off now, but how much was it off BEFORE the recent software update?  

[RDavis2528]

@DJG It was off $14 prior to the update.

[dm47208tt]

@RDavis2528 -- I'm glad it's working for you but for me (Windows CD), the Schedule D mismatch persisted after following the 'clean slate' approach. After reimporting a single 1099-B (~780 items), Sched D still reports proceeds ~$10 higher and cost basis ~$10 lower than the revamped, accurate 1099-B worksheet. 

[DJG]

@RDavis2528 Yeah, I can't imagine why you're getting a different result from everyone else.  I started a brand new tax return and imported my 1099-B, but still get the following result:  EasyStep shows the correct capital gain that matches by 1099-B, but Form 8949 and Schedule D still show the incorrect amount that TT calculates by rounding every number they can get their hands on. 

I heard that in the next software update they're going to round our SSNs too.  

[PlotinusRedux]

Another issue: if you did re-import your consolidated 1099-B with the new version hoping for this "fix", double check that your Foreign Taxes deduction is still correct.  In my case it doubled it--on the screen, on Schedule 3, and on 1040 line 20.  This only happened to be with the new version--I had re-imported previously.  If other people had this issue I'll start a new thread on what I had to do to fix it (took me an hour of experimenting).

[RDavis2528]

@PlotinusRedux If under the new version your Foreign Tax Deduction is double, in my past IT experience, this would indicate you did not delete your previous TT data file but instead just eliminated what appeared to be the Form 1099-B import and then you reimported the Form 1099-B. That is why I advocated deleting the previous data file and starting anew on everything. This is one of those leftover bits of data I previously to which I previously referred. Yes, it's more trouble and time but my results show it works.

I'm satisfied with my results and will be filing within the next hour after one final check.