I purchased TurboTax Premier 2024 Desktop edition, and used its import feature to import my 1099B form (including ~1000 stock transactions) from my investment account. While reviewing, I noticed that total realized gain reported on 1099B tax statement generated by my brokerage firm mismatched the amount computed by TurboTax, which over-reported proximately $65,000 total gain!!
After several hours phone conversation with both TurboTax & brokerage firm costumer support, we finally narrowed down the issue is that despite all stock/bonds transactions (including -130 wash sales and market discount transactions) are imported successfully into TurboTax , TurboTax somehow magically combines “Total Wash Sales” and “Total Market Discount” data into total realized gain data, in other words: Total Wash Sales - Total Market Discount = Over-reported total investment gain. And there is no way I can modify the incorrect total gain amount on TurboTax.
I was advised by TurboTax with a workaround: manually enter the total investment amounts into 1099 B, then mail 1099B tax statement with transactions details to IRS separately after e-file, which means I need print out ~100 pages 1099 B tax paper statement!
I’m sharing my story here in case other tax payers using the product experience same issue and wondering why, also hope TurboTax team can address this critical issue sooner to improve its software quality.
