How do I stop Turbo Tax from rounding down to zero a .26 cent entry that is causing a problem with a wash sale loss

[berryc2009]

code W

[AnnetteB6 · Accepted solution]

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.  

[BusterPosey23]

I've seen this error and reply several times over the past few weeks, but I'm still stuck. I followed these instructions, but am unable to delete the wash sale adjustment amount. No 1g box visible. Not sure how to manually edit. Thanks!

[DaveF1006]

According to this Turbo Tax link, the IRS requires that numbers are rounded to the nearest dollar thus there is no other option to make.

[BusterPosey23]

The amount imported for the wash sale is 0.02 which is rounded to 0. But 0 is not a valid input, hence the cycle of TurboTax errors. The often given "fix" by TurboTax does not work for the reason explained in my response. 

[JohnB5677]

The fix as described does work.

To enter a disallowed Wash sale:

Income & Expenses

1. Scroll to Stocks, Mutual Funds, Bonds, Other
2. Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2020?
3. On the OK, what type of investments did you sell? screen, select Stock, Bonds, Mutual Funds. Then select Continue.
4. From here, you can import or manually enter your 1099-B.
5. Answer the questions about your sales. Choose to Enter sales one by one when asked.
6. On the Now, we'll enter one sale on your 1099-B screen, enter your info.

​​​​​​​Check I have other boxes on my 1099-B to enter 

This check box is at the very bottom of the screen.

Once activated you will see Wash sale loss disallowed

​​​​​​​

@BusterPosey23

[BusterPosey23]

The problem is that when imported, it marked it as a wash sale, but since it was rounded to 0 (which is not a valid number for TurboTax) it came as an error. I was unable to override it using the step by step. 

I was able to figure it out by going into the Forms views and edit the corresponding worksheet (I have the desktop version, not web). 

[dekkor]

Is this being treated as a bug, and if so, can a fix be expected anytime soon?

The ability to import brokerage information is one of the reasons for selecting TurboTax. The workaround of editing each sale is not feasible given the number I would need to process and the sluggishness of the TurboTax interface.

The option of summarizing and submitting physical copies is also not something that I would wish to do.

[Irene2805]

We are partnering with the IRS to change this situation and expect them to update their rules later in the season.

Right now there are three options you can take in this situation, They are explained in this TurboTax Help article:  How do I fix my 1099-B negative values?

@dekkor