Our 1099-B has a Disallowed wash sale (code W) amo...
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fenzl21
New Member

Our 1099-B has a Disallowed wash sale (code W) amount of 0.20. When we go to file it tells us we can not put in 0. How do we fix this?

We go back to the 1099-B and the box is filled in correctly for that Capital gain. When we go to file it tells us that we entered 0 and that is not allowed. We have tried to type in 0.2 and it just changes it back to 0. We can not file until this works.
2 Replies
AnnetteB6
Employee Tax Expert

Our 1099-B has a Disallowed wash sale (code W) amount of 0.20. When we go to file it tells us we can not put in 0. How do we fix this?

The error messaging you are seeing with regard to the wash sale entries is a result of automatic rounding of the number imported from your broker or typed in by you.  If the wash sale adjustment is $0.49 or less, then it is automatically rounded to zero.  This type of rounding is allowed by the IRS.  Unfortunately, zero is not a valid value for this field -- thus the error message.

 

To resolve the issue, you can edit each individual transaction (although not from the screen in the review process) and delete the amount entered in the wash sale adjustment if it is $0.49 or less.  This will clear the error message.  

 

To do this, you will need to revisit the input section for the Form 1099-B transactions.  Use the following steps:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-B” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to 1099-B
  • Click on the blue “Jump to 1099-B” link
  • Click Edit beside the institution name
  • Click Edit beside each transaction that contains a wash sale adjustment amount of $0.49 or less
  • Delete the wash sale adjustment amount and click Done

 

If you have too many transactions that would require editing, you can consider deleting your imported information and entering a summary of the different categories of transactions reported on your Form 1099-B (short-term covered, short-term not covered, long-term covered, long-term not covered).  This would require you to mail a copy (not the original) of your Form 1099-B from your brokerage to the IRS within three days of filing your return.  The Form 1099-B would be attached to Form 8453, which will print with your return.  

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Kat
Level 15
Level 15

Our 1099-B has a Disallowed wash sale (code W) amount of 0.20. When we go to file it tells us we can not put in 0. How do we fix this?

I'm sharing an answer from my co-Champion @rjs , which I think will solve your issue.

 

You can't correct the problem in Smart Check because you can't uncheck the box there. You have to go back to where the sale was entered in the interview 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. That eliminates the error.

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
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