On 1099-B line 1g I have a disallowed wash sale loss of $0.10, code W. TurboTax insists I enter an amount, but won't accept $0.10, $1, 0, or <blank>. What should I do?

[rjs · Accepted solution]

You can't correct the problem in Smart Check. You have to go back to where the sale was entered under Investment Income > Stocks, Mutual Funds, Bonds, Other. Edit the sale and delete the wash sale loss amount. In other words, since the wash sale loss is less than 50 cents, you don't report it as a wash sale.

This problem has been reported to TurboTax.

[Anonymous]

I forgot to put wash sale loss disallowed amount in the tax return but total gain is still negative more than $3000. I know amending the return will only affect the carry over loss amount   Should i still amend the tax return?

[rjs]

@Anonymous  You should amend so that the carryover is correct. You should report the correct carryover amount next year, and it might cause problems if the carryover that you report on your 2021 tax return doesn't match the amount from your 2020 tax return. But it's too soon to amend 2020. Form 1040-X is not expected to be available until March 25.

In the future, it's better to post a new separate question of your own instead of hijacking someone else's unrelated thread. Your question has nothing to do with the question that started this thread, except that both involve a wash sale.

[Anonymous]

Thank you for the quick turnaround. 
I did summary report for original tax return I submitted today and has been already accepted by Irs. 

for amendment, should i submit detail level (more than 50 transactions...) for this?

[rjs]

@Anonymous  I don't think it's necessary to send the transaction details with the amended return. By the time you file the amended return the IRS should already have the details one way or another. Either they were all covered securities and the broker reported the detail to the IRS, or you will mail the detail with Form 8453 now that you have e-filed the original return.

[Anonymous]

In this case, i reported as minus 41000 because i did not add the wash sale disallows amount. 
My total net gain will be $3318 so i will be paying for tax on $3318 not the loss of $49714. Right?

[Anonymous]

[rjs]

@Anonymous  I can't tell exactly what's going on here. The brokerage statement that you posted shows a net gain of $3,318, but there's something included in the totals on Schedule D line 1a that's not in the totals on that brokerage statement. And you didn't show the rest of Schedule D, so it's not clear what your overall loss was. I don't want to get involved in analyzing your whole tax return, but if $49,714 is the overall net loss that you reported, and $42,522 of that will be disallowed, you would still have a net loss of $7,192 on your tax return. If that's the case, you would not be paying any additional tax for 2020. Only the carryover to 2021 would change, which is what you said in your first post. In a year or two you will pay more tax than you otherwise would have, because your capital loss carryover will be less, but you wouldn't have a payment due with your amended return.