Many issues may be
involved with this question, so we'll try to hit them all just in case. Feel
free to comment in the details section if you need more help.
TurboTax is attempting to make sure that it
gives you all the options for entering capital gains, whether they are short or
long term (this changes the tax impact).
If you don't know, just try picking a box and then the next screen will
probably look more like what you're expecting.
So these are not
what is reported on a 1099-B (or a substitute), but rather, this allows you to
pick the one that fits your situation, and then it will allow you to enter the
information from your 1099-B (or substitute).
So, try to pick the
box (or boxes if multiples) that fits your situation as far as short term or
long term, and if the cost basis was reported to the IRS or not.
The important
information from a 1099-B is the information about date acquired (box 1b), date
sold (1c), the sales proceeds 1d), the cost basis (1e), and of course the tax
withheld (4).
Understand that
assets held a year or less than a year will be short term capital gains (at
regular income tax rates), and anything held 1 year and 1 day or more will be
long term capital gains (with potentially lower tax rates).
Here is a sample
1099-B for 2014 http://www.irs.gov/pub/irs-prior/f1099b--2014.pdf
This link may prove
helpful to you with questions about capital gains: http://www.irs.gov/taxtopics/tc409.html
Note: it's important not to confuse
boxes A, B, D, E, and X on your TurboTax screen with the 1a, 1b, 1c (etc.)
boxes on your 1099-B form. These are two completely different things.
Boxes A, B, D, E,
and X often appear as headers or section titles on your 1099-B form instead of
literal boxes. Exact wording varies between brokerages; for example, Box A from
3 different brokerage statements might read:
Short-term
transactions for which basis is reported to the IRS—report on Form 8949 with
Box A checked.
Short-term
transactions for which basis is reported to the IRS--report on Form 8949, Part
I, with Box A checked.
Short-term
transactions for which basis is reported to the IRS—report on Form 8949 with
Box A checked and/or Schedule D, Part I.
Nevertheless, they
all mention Box A, so you'd check Box A in TurboTax and the next screen will
open the 1a–1g boxes which correspond to your 1099-B form. Boxes B, D, E, and X
work the same way.
Another way to look
at it: The sales category is determined by two factors:
1. Basis reported or
not reported (form 1099-B may say covered/ noncovered), AND
2. Holding period
(long term or short term)
Look for two factors
above and match the description listed in TurboTax:
Box A - Short term
covered -short terms sales with cost basis reported to the IRS
Box B - Short term
noncovered - short terms sales with cost basis NOT reported to the IRS
Box C - Short term
not reported - short terms sales not reported to the IRS
Box D - Long term
covered - long term sales with cost basis reported to the IRS
Box E - Long term
noncovered - long terms sales with cost basis NOT reported to the IRS
Box F - long term
not reported - long terms sales not reported to the IRS
Box X - Holding
period and cost basis NOT reported to the IRS.
