1099-B upload

[ma6878]

Turbo tax rounded off individual entries in my 1099-B. This has resulted in $33 less in gains on the Sch D. On another thread TT said that the diff due to rounding is within IRS tolerance limits. Would $33 diff be within IRS tolerance limits?

The work around provided is to put in summary and attach the 1099-B online. It will be transmitted by TT. I can do that but can/should I upload for all the 1099-B or only the ones with big difference? Also, will my attached 1099-B be transmitted by TT to NJ IRS along with my state return?

[KathrynG3]

While the $33 difference would not have a significant tax impact, you have treatment options:

Option 1: Correct the $33 gain by adding one additional transaction line with $33 of proceeds and $0 cost with a description such as rounding variance. This is an acceptable solution to the IRS. Whatever was imported to TurboTax via your broker would be acceptable support. No additional mailing with Form 8453 would be required. The totals will match to what was imported.

Option 2: Individual transaction line correction for the transactions affected. Without seeing your specific return, I suspect the variance may be coming from wash sale rounding. For the directions to adjust these, see: Wash Sales < $1. Adjust the cost basis, not the sale. The IRS receives copies of all government forms including Form 1099-B. They will match what is reported for sales proceeds to their copy.

If you are instead needing to upload cryptocurrency details, please see: aggregating and uploading cryptocurrency options.

Option 3: Remove the Form 1099-B with the $33 variance. The variance is not uploaded as a separate PDF. The details must be mailed in included with a "cover page," Form 8453, within 3 days of the electronic filing. Choose your preference on how to report the details:

• Option 3a: Enter Form 1099-B in summary according to long-term and short-term, covered and non-covered transactions, and mail in the entire Form 1099-B. 
• Option 3b: Remove only the transactions impacted by the rounding variance. Pick through the Form 1099-B with the $33 variance and only mail the portions that were rounded and not included in detail. Enter in all the transactions with the variance in summary form according to long-term and short-term, covered and non-covered transactions.

Regarding New Jersey, see the Instructions for the 2020 NJ-1040, page 13, Schedule NJ-DOP Net Gains or Income from Disposition of Property for more information. Attaching the forms would only be necessary if the transactions had a New Jersey adjusted basis.

[Edited 05/02/2021 | 6:23 AM PST]

@ma6878