First time reporting 1099-B since 2021 and I have some questions.

[wisdomseeker1992]

I have started trading on Robinhood since 2021, but I haven’t reported my losses in prior years. I am not sure if Turbotax can handle it with free version. I have tax documents generated in turbotax in 2021 and 2024, but I don’t see none for 2022 and 2023. I am still in a net loss situation and I am not sure if there would be a problem in reporting it in 2024 returns. Please advise.

[JamesG1]

The losses would be recorded in the year in which the loss took place and would offset income earned in that year.  You would have to file an amended tax return for each year.

If you used TurboTax Online, log in to your account and select Amend a return that was filed and accepted.

If you used the CD/download product, sign back into your return and select Amend a filed return. 

See also this TurboTax Help.

If you do not see your tax returns for 2022 and 2023, they may have been reported under a different TurboTax account.

This TurboTax Help explains how to view a list of your Intuit accounts.

This TurboTax Help explains how to view, download or print a prior-year return. 

TurboTax Premium is required to report an IRS form 1099-B.

[wisdomseeker1992]

Hi @JamesG1, thank you so much for your response and the information is super helpful. A small correction in my question -  I didn’t have any tax documents generated in Robinhood (not turbotax) for 2022 and 2023 - it is probably because I haven’t been active on the platform.

[ThomasM125]

If you didn't have any trades in 2022 or 2023, then you wouldn't need to report any investment sales for those years. However, if you had capital loss carryovers from 2021, they would need to be reported on schedule D to deduct the $3,000 of net capital loss deduction allowed each year. 

Also, you don't deduct losses until you dispose of a security. So if your losses are just on paper, you would not report those on your tax return until the year you sold the security or it became worthless.

[fanfare]

If you don't record losses and carry them forward each year, you are giving  up a valuable deduction.

If corrections are needed, the deadline for an amended  2021 tax return is April 15, 2025

If not carried onto 2022, the deadline is one year later.

@wisdomseeker1992