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

[scapegrace_tyro]

Entering the totals was much easier than trying to reconcile all the transactions since Turbotax has corresponding dropdowns for each category.  So thank you for the suggestion, but I have a follow-up question for you (or anyone).

When I enter the data this way (manually), Turbotax asks for a copy of my 1099B form to upload to the IRS.  Will this delay the refund through electronic filing?

[DaveF1006]

No this will not delay your filing because it is all done electronically.

[scapegrace_tyro]

Thanks @DaveF1006, you probably saved a customer (me) from going over to H&R block.  Actually I almost completed my returns with the H&R app, but they got my 1099-B totals wrong when it imported from my broker, so I'll be moving forward with Turbotax.

Thanks again and safe taxing.

[irush59]

WHEN IS THERE GOING TO BE A FIX FOR THIS PROBLEM!?!?!

[ToddL99]

There is no fix necessary - the IRS (and TurboTax) will not accept negative numbers in either the cost basis or proceeds fields. You will have to manually edit any imported negative entries in order to proceed with e return and e-file. 

Starting with the 2020 tax returns, the IRS 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. This will result in a gain. 
   
Losses from expired options are reported by entering the loss amount as a positive number in the cost basis column and no amount in the proceeds column. The end result here would be a loss. 
   
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.  

[canuck97]

@ToddL99 

@DaveF1006 

Sorry to continue to drag this out, but look at the IRS 2020 instructions for 1099-B:

2020 Instructions for Form 1099-B

 Page 8, Item Box 1d. Proceeds, Paragraph 1:

Box 1d. Proceeds. "Enter the gross cash proceeds from all dispositions (including short sales) of securities, commodities, options, securities futures contracts, or forward contracts. Show a loss, such as one from a closing transaction on a written option or forward contract, as a negative amount by enclosing it in parentheses."

Seems clear to me that negative amounts in the proceeds box are allowed and expected on 1099-B.

Now I have seen several posts that say negative amounts are not allowed on Schedule D, which I assume is automatically populated by Turbo Tax from the 1099-B.   So how do we resolve the inconsistencies for what the IRS expects on the 1099-B vs Schedule D?

Please explain, this is confusing a lot of people.

[DianeW777]

The instructions seem to be contradictory with the stated e-file change for 2020. The key is to have the tax return completed with the correct end result numbers on the tax return.

My advice is to put $1 in the sales proceeds and then add that $1 to your loss and enter this in the cost basis field to show the loss on the transaction.  This should allow you to complete your tax return. This should be done in all sales with a negative proceeds.

[canuck97]

@DianeW777 

@ToddL99 

@DaveF1006 

I agree that the instructions seem to be contradictory. 

BUT If the instructions are contradictory then it should be up to intuit to resolve this with the IRS and/or the brokerages, and not expect turbo tax users to fudge the numbers!

intuit rmployees are supposed to be tax experts, and any advice to fudge numbers to make an end result match hardly seems to be the correct thing to do, turbo tax experts should at least have a consistent response.

[fanfare]

Turbotax does not comply with the instructions !

The solution is to use aggregation, as I mentioned earlier on this thread.

Your covered transactions without adjustments do not require form 8949. No mailing is necessary.

[jessie3h]

FYI, TT *is* now accepting $0 in the "Sale Proceeds" box.  I just spent a lot of time adjusting around 50 transactions....all I did was switch the negative proceeds number/box D  to BoxE/Cost basis and this solution is giving me to correct NET gain/loss.  It's definitely annoying and it would behoove TT to make an update as THIS is the exact reason why i use TT...to NOThave to figure out and list my 1000 complex options trades!!

 

[mjlis1672]

So I just spent literally an hour on the phone with a rep from this company and she didnt know that this happened last year AND that they patched it up eventually? Unreal.  Spent an hour talking about the problem and showing her how my computer freezes up everytime the first error popped up. Never once did she mention this.  Ugh!  I hope they patch this up, since she insisted the next best option was to manually enter the trades. I literally laughed everytime she mentioned it.  I'm like, "soooo, I'm gonna pay you guys $100 and I am gonna spend the hours entering the data?  No thanks."  Hopefully someone posts here when the patch happens.

[mjlis1672]

So I just spent literally an hour on the phone with a rep from this company and she didnt know that this happened last year AND that with 4 steps I could just workaround it?   

[canuck97]

@jessie3h 

So jessie, did you import your 1000 transactions, and then manually adjust ONLY  the entries that had a negative value for proceeds?   I ask because your screen shot shows a circle checked for "I will enter one sale at a time".  Please tell me that you didn't enter 1000 trades manually.

[Mister C]

Yep, same problem here for 2021.

[remarkl]

Ditto. My problem is with TDAmeritrade, which just released my 1099-B on 2/11. Is this forum the best way to tell Turbotax they've messed this up again?