Check this entry error received upon final review. Error states "Form 1099-B Worksheet (TD Ameritrade) Sales Price is not between prescribed upper & lower limits?

[swept14]

Occurs on final review step. The amount it lists as "outside upper and lower limits" is the correct amount as listed on my 1099-B. This page times out on my browser and I am unable to change the text in the recommended bar. It looks like a software glitch. Please advise of any known fixes. Thanks for your time

[AnnetteB6 · Accepted solution]

There has been a change by the IRS starting with the 2020 tax returns that will reject any return filed with a negative number reported in the proceeds or cost basis fields for Schedule D.  TurboTax is flagging these situations ahead of time before the return is filed in order to prevent the IRS rejection.  Some brokers are still using the old convention for reporting negative values and have not updated their reports to match the IRS.  

The error message reported by TurboTax is telling you that the number entered cannot be negative.

Gains from expired options are reported by entering the gain amount in the proceeds column and no amount in the cost basis column.  The end result here would be positive. 

 Losses from expired options are reported by entering the loss amount in the cost basis column and no amount in the proceeds column. The end result here would be negative. 

 No negative numbers should be entered in either the cost basis or proceeds fields.  

If negative numbers have been imported through your brokerage statement, you will need to edit the entries to make the correction.  

[swept14]

This was very helpful. Thank you. I updated all the entries in the worksheet IAW your recommendations. However, I now receive another error that states: Form 1099-B Worksheet: Sales Price must be entered. "Sales Price" doesn't seem to be a category on my consolidated 1099-B from my broker, nor is there an easy place to enter it in TurboTax.

Thank you for any additional light you can shed on this issue.

[AnnetteB6]

Sales price would be the same thing as 'proceeds' or 'amount' when entering an individual transaction within TurboTax. 

This is the total amount you received from the sale of your holding.  It is usually reported in box 1d of Form 1099-B or on a consolidated broker's statement and may be labeled as gross (or net) proceeds, net sales price, or dollar amount of transaction -- all meaning the same thing but using different labels.  

@swept14

[johndstewart]

During 'Review' TurboTax has put a "zero" in a box that is supposed to be left blank.  How get rid of the zero?

[swept14]

@AnnetteB6

Thanks for another reply. IAW your original advice in this thread, I moved the proceeds figure (when negative) as reported on my 1099-B to the box 1e reporting in TurboTax online. You recommended:

"Losses from expired options are reported by entering the loss amount in the cost basis column and no amount in the proceeds column. The end result here would be negative."

So, now I'm gonna go back and add zeros to all the box 1d in TurboTax online. This seems to be a software error in the reporting of short-term losses as reported on 1099-Bs. Because of following your advice above I don't have any number on my 1099-B in box 1d from my brokerage because in this case those are negative numbers. So, I can't follow the advice you posted in your most recent comment:

"It is usually reported in box 1d of Form 1099-B or on a consolidated broker's statement and may be labeled as gross (or net) proceeds, net sales price, or dollar amount of transaction -- all meaning the same thing but using different labels."

Any additional advice you can share? I'll go through all the transactions again and add a 0 in the TurboTax online.

[swept14]

@johndstewartYour recommendation worked, I simply had to add a $0 in the "proceeds" box. It was no longer flagged. This is a very cumbersome process on TurboTax online. I'd love to learn how to submit potential changes to next year's web-based software. It would be great to be able to sort the many entries by date, cost, etc.

[mikemalloy]

The reason I use Turbo Tax is because it's compatible with TD Ameritrade. The cost is well worth avoiding preparing schedules. If now I have to go back and edit the TD statement it's no longer worth the cost. If I'm going to have to edit my return manually, I might as well just do the return myself. Is it really a problem or is this just a scam to get us to uses the more expensive version?

[Jimmy W]

Hi, AnnetteB6:

Other forums are saying that this is a Turbo Tax error that has occurred in previously years. Can you share where you saw “ Starting from 2020, IRS will reject (no longer allow) negative proceeds....“. My situation is I first sold naked puts and bought it back later for a loss (paid more than what I initial sold it for). TD Ameritrade is showing a zero cost basis and a negative proceeds. No problem for previous years. Thanks much if you could elaborate 

[mikemalloy]

Annett

I understand what the solution is but I don't seem to be able to make any changes to the schedule. The program asks me to change the negative numbers but does it also ask to change the cost basis? By only changing the negative proceeds figure I am having to pay additional taxes since it increases my income. Is my only alternative to do the taxes by hand?

[gloriah5200]

There has been a change by the IRS starting with the 2020 tax returns that will reject any return filed with a negative number reported in the proceeds or cost basis fields for Schedule D. 

TurboTax is flagging these situations ahead of time before the return is filed in order to prevent the IRS rejection. 

Some brokers are still using the old convention for reporting negative values and have not updated their reports to match the IRS.  

The error message reported by TurboTax is telling you that the number entered cannot be negative.

Gains from expired options are reported by entering the gain amount in the proceeds column and no amount in the cost basis column.  The end result here would be positive. 

 Losses from expired options are reported by entering the loss amount in the cost basis column and no amount in the proceeds column. The end result here would be negative. 

 No negative numbers should be entered in either the cost basis or proceeds fields.  

If negative numbers have been imported through your brokerage statement, you will need to edit the entries to make the correction.  

For additional information refer to the following link:

Sales Price not between upper & lower limits

[jcberardo]

I reran the Turbotax on Saturday 20-Feb-2021 and there was an update to the software.

The error message no longer shows up. 

Sched D row 1a ---- column d proceeds shows -5000 --- Col e 4000 --- Col h -9000

This matched the Financial Form 1099-B

The Form 8949 tables have no negative numbers, but does not match the Financial report on the options.

Using the Financial 1099-B specific number  1,900.18  which is negative, it now shows up on page 489 in the 1099-B Worksheet TQUICK. 

NOW TURBOWTAX, do I have to go through each options and stock sale shown on the Financial 1099-B and confirm Turbotax has it correct or incorrect? THEN manually make the correction myself? 

With that, where is the liability coverage for TURBOTAX should I choose to spend the money having Turbotax guarantee?

Timing and money are key when meeting ones obligation to the IRS.

JC

[jcberardo]

Hello Turbotax - 

I have sent an email to my Financial Institution to confirm what Turbotax is stating and to have them tell me if they will be updating the 1099-B forms in compliance to the IRS 2020. 

.

IF the IRS 'ruling' is correct, then the IRS will not be accepting the 1099-B statements from any Financial institution submitting the negative numbers as stated by Turbotax, then the IRS will not have the financial statements to check against the personal tax returns... System in flux... 

.

This needs to be confirmed by the IRS and Turbotax, yes?? 

[LinaJ2020]

The issue has been submitted and is currently under investigation.  Please click on the following link and sign up for an email notification when it's fixed.  

1099-B negative

A Form 1099-B is issued to report the proceeds from your stocks and bonds transactions.  The transactions will generate either a long term or short term capital gain or loss depends on how long the stocks are being held.  The amount will be reported on line 7 of your Form 1040 along with a Schedule D and Form 8949.  

[jcberardo]

The latest update has not fixed the problem to E-file. 

The Turbotax screen has 'can still print and send it in' ??? 

If it's not acceptable by E-file, why would it be by printed version?

I have sent another email to Fidelity to review and confirm the Turbotax statement,

And to confirm Fidelity will be updating the 1099-B forms. 

And how does this impact the Turbotax Guarantee?  

Would attach a screen shot and other items but I don't see a button to attach files.. 

JCB