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

[irush59]

Does not appear they really give a crap.

I have subscribed to TT for years.....only because I am tax stupid and the platform makes it easy for me.  This is not easy and pissed there is no global communication to users on either to how to easily fix.....or when a patch will be issued.

Of course they got you.....you already paid for the software before this issue pops up.

When I raised this issue last weekend to support, they immediately transferred me to their accounting platform and wanted me to spend an additional $100.  Not kidding.  Called back and talked to another person in support.  She advised me to wait for a fix and if not done in 10 days, they would escalate me free to their accounting service....and they would take care of the problem.

We should not have to pay for a service that creates a brain drain for their customers.....period!

PO'd in MO!

[canuck97]

@irush59 

@remarkl 

@Mister C 

well we all agree that this is rediculous especially since I and one other person have pointed out that the IRS intsructions for 1099-B ( page 8 box 1d description  ) say to enter negative numbers enclosed in parentheses  (Please google this to see for yourself ).  So clearly it is valid to have negative numbers for proceeds and is expected.   So previous posts by turbo tax "experts"  that negative values for box1d are invalid are incorrect.  Everyone call support and lets raise the priority of this issue!   If they fixed it last year there is no reason why it can't be fixed this year

[Paul_A]

This is my last year using TT.  I need to spend hours adjusting my 1099 and spend $100 for their service?  NO thanks.  TT is useless and their experts point to incorrect information from IRS and hides behind it until someone sheds light that they're wrong then they sit on their hands again.  Useless garbage.

[remarkl]

Yes, a fix is needed. As things stand, TT CANNOT usefully download from TDAmeritrade, so the option to do so should be removed. If there is a routine fix, TT should be able to do it from the downloaded forms. OR, TT could create a routine that allows all transactions with negative cost and zero proceeds to be AUTOMATICALLY recast with positive proceeds with zero cost.  Identifying those transactions is easy; the error tracker already does it. Just add a "Convert to IRS format" option in the error correction dialog.

The fix must not defeat e-filing. Last year I went through the entire e-filer rigmarole only to be told at the very end that my state won't accept an e-file with a corrected basis. 

[chuck_spy]

I finally fixed this.  I just added the negative proceeds to my cost basis and put it in 1e.  I entered 0 in 1d.

[canuck97]

@chuck_spy 

Chuck,  did you still use the import feature to import your 1099-B and then manually change ONLY the entries with negative proceeds or did you enter each trade manually? 

 Please respond, thanks

[kimchu58]

Here is what I don't understand.

Reading thru the forum discussions, last year's TTX had the same problem and it was finally fixed because last year, we were able to import negative values in the Proceeds field. So why has this worked with last year's software ?

Also, two members replied that other tax software - TaxAct and H&R Block Premier tax accepts negative value, so why don't they have the same issue ?

Workarounds like switching the numbers between Proceeds and Bases may give the same net gain/losses, but the concern is the total net Proceeds will be different than what is reported to IRS from the 1099B. Will this trigger an audit because IRS thinks one is not reporting all the transactions ? No one wants an IRS audit, because it's like your "guilty until proven innocent" with a whole bunch of paper audits/interviews, etc. !!

I do appreciate all the members providing inputs and workarounds, it would be great if we can get an official answer from Intuit product team.

Thanks,

Kim

[Nobody789]

TurboTax pissed me off so much with "just move numbers around for 100s of transactions manually" that I went through HR block instead. While HR Block will accept negative numbers they too are trying to make life difficult because it won't let you efile if you had stock related losses on a Schedule D. So I guess it's choose who pisses you off less. I'm going to see if a third brand will handle taxes properly because this **bleep** is ridiculous. I'm not switching numbers around line by line because TurboTax is too lazy to write a good software. 

[fanfare]

"it won't let you efile if you had stock related losses on a Schedule D"

isn't this just another way of denying your imported transactions but at a slightly different point in the process ??

 of course you can always mail in your TurboTax return at the Post Office, also.

[Anonymous]

For the 2020 tax year, this is not a "bug" but is an IRS e-file requirement.  The IRS will reject the return this year if negative numbers are listed as the basis.  So, TurboTax has been programmed to comply with this.  The reason was the same last year - this is the IRS preferred format - but last year they relented because the IRS would still accept those returns. 

This year, the IRS will reject them, so TurboTax is giving you the error to avoid the e-file rejection.  

You can file with losses, you just need to adjust the entries so that there are not negative numbers.  

[quantbone2020]

1. If that were the case, then the IRS needs to update their website, because the IRS website is specifically instructing us to use parentheses for negative numbers.

2. If that were the solution, then TurboTax should be able to write a code to update the software as such, correct? Last year had a huge spike in people buying/selling options, so I have a few hundred transactions that I would have to manually adjust? If that were the case, what is the purpose of having a tax software?  

[TheRealTax2]

I took the advice of the TT experts here and set 1d to 0 and negative proceeds as a positive basis. This worked and gain / loss did stayed the same. Did I just set myself up for a letter from the IRS due to reported 1099-b proceeds and basis not matching? If this is the case then customers should be warned that the suggested change will trigger an audit. We now have three brokerages that are reporting negative proceeds on 1099-b. What has to be done if it turns out the TT fixes it on the software side? Would i just amend the return using the original 1099-b unmodified values?

[quantbone2020]

I am not a tax expert, but I do not feel comfortable doing that for hundreds of entries. I tried using the summary route, and because I have "wash sales", it triggered me mailing a physical copy of 100+ copies of my 1099 statement to IRS in Austin, TX. I assume this is a "normal" procedure, but I'm still not sure sure why TurboTax can't come out with a system update to fix this...

[canuck97]

I just called etrade and told them that Turbo Tax said their forms are wrong if reporting negative values in proceeds box 1D.  They said they were informed this morning that Turbo Tax was going to work with the IRS to resolve this issue.

So who the heck are you supposed to believe.   Etrade believes that they are reporting the data correctly and looking at the instructions for 1099-B ( where they talk about reporting option trade losses in box 1d as negative using parenthesis ) I agree with them. 

Anyone using the other brokerages (e.g. Fidelity and TD Ameritrade ) please contact them and see if they agree with this please and post on this thread

[canuck97]

talked to another etrade support person.   He said:

"Turbo Tax stated that the IRS will be publishing the change to allow the negative values in the coming week, but this is not a formal date commitment from them unfortunately."