I have stocks that got bankrupt and I asked robinhood to declare them worthless. They did and it showed in their app but they do not show in 1099-B. Advise how to report.

[MaryK4]

To enter worthless stock as investment sales in TurboTax Premier desktop:

1. Under FEDERAL TAXES tab,  Wages& Income, select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) under Investments and Savings.
2. Did you have investment income in 2025? YES
3. On the Let's finish pulling in your investment income- click on the Add Investment button
4. On the Let Us Enter Your Bank and Brokerage Tax Documents, click on Skip Import
5. OK, let's start with one investment type- choose Other then Continue
6. Tell us more about this sale  Worthless Stock Continue
7. Now, enter one sale for WORTHLESS STOCK (Proceeds=0 Date sold or disposed= 12/31/2025)
8. Let us know if any of these situations apply to this sale  This was a worthless security  Continue

To enter worthless stock as investment sales in TurboTax Premium online:

1. From the Federal section, under Wages & Income,
2. Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B, 1099-DA) under Investments and Savings
3. On the Let’s finish pulling in your investment income page, click on Add investments.
4. On the Save time and connect your financial accounts click on Enter a different way
5. On the How do you want to add your docs? click on Type it in myself
6. On the OK, let's start with one investment type, click on Other and Continue
7. On the Tell us more about this sale, type Worthless Stock
8. On the Now, enter one sale for Worthless Stock, complete the information using 12/31/2025 asDate sold or disposed and zero for Proceeds.  Enter your original investment for Cost or other basis

You may deduct the cost or other basis of stock in the year that it becomes completely worthless.  See Losses (Homes, Stocks, Other Property).

[ravibhatta007]

Thank you for the comprehensive reply. I have one question, When I select Other under "

OK, let's start with one investment type", it actually is going to 1099-S. I found it is for real estate not stocks. Shouldn't this be 1099-B?

[JamesG1]

The investment type Other at the screen OK, let's start with one investment type is a catch-all category that includes the sale of land, the sale of second homes, the sale of personal items, sales that may or may not have been reported on an IRS form 1099-S.  This is the correct category.

Continue on to the screen Review this XXX sale.  Under What type of investment, you may select Stock or many other investment types.

Enter 'worthless' in the Description of the item.  At the next screen, select This was a worthless security.

@ravibhatta007 

[ravibhatta007]

My basic question is 1099-S as a general category seems incorrect vs 1099-B for stocks. 

Seems it is for property and 1099-B is for stocks. 

There are few post I found that support my thinking, really confused how to make sense of this, please advise

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-do-i-write-off-wo...

https://ttlc.intuit.com/community/taxes/discussion/how-do-i-record-stock-loss-due-to-bankruptcy-of-a...

[DavidD66]

This is really quite simple.  For your stocks that became worthless because the companies filed for bankruptcy, enter them the same way you would if you had sold them and the transaction was reported on a Form 1099-B, even if it was not.  When entering them one at a time, 

• For the Sales Section, select "Long-term did not receive form 1099-b" (assuming they were not on your 1099-B).  
• What type of investment did you sell? Indicate "Stock (non-employee)".
• Enter a description
• Enter the date you acquired the stock
• For Date sold or disposed, enter the date you became aware that the stock was worthless.  This is not necessarily the date they filed for bankruptcy.
• For proceeds, enter $0
• Enter your cost basis
• Continue and enter the next transaction