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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I'm encountering the same issue where my wash sale amounts are under the 0.49 limit. When I follow the steps here and find the single transaction to edit, there is no field for wash sale. I only see box 1a, box 1c, box 1b, box 1d and box 13 with text inputs. Where can I remove the wash sale value?
I had the same problem. Since the worksheet is not necessary for filing but simply for my records, I deleted the ones that had this error so I could e-file. Not scientific but it works.
update: Since the worksheet is not necessary for filing, I deleted the 5 with the zero adjustment issue and was able to submit the file for transmission. not scientific but it works. The 1099 B was captured correctly; the problem was on the worksheet only.
Thank you for your instructions here, I was able to manually add a summary to get past this issue.
It's absurd that the actual "review and fix" section at the end tells you nothing about why it's wrong, and actually deletes the input I type in without typing why - and even if I delete the box like it says, it sends me on an infinite loop to fix things.
Also - the original problem should be fixed in the first place to import correctly. It seems like someone somewhere along the line didn't account for how the IRS rounds numbers - this should be accounted for so the "automatic" import works the first time.
I use betterment, which does a ton of transactions in the background to minimize tax losses (I had 460 transactions).
Please fix this issue so others don't have to go through the same problem.
I use Betterment as well and this work around allowed me to e-file. Just to further clarify, if like me you got confused with the zero value, you only have to correct entries that are $0.01 to $0.49 values that get rounded down to $0.00. You do NOT have to fix entries that are already showing $0.00.
Ended up just editing a few entries, thank goodness. It does take a while because of the interface, you'd have to submit after the update, then answer a question for every entry. Also, If your item is in page 10, you are returned to page 1 after every update.
This did turn out to be a time waster, to be honest.
Thanks for the work around, though.
Sorry to hear that some are still having issues with existing $0.00 values.
I guess one thing to double check is that the entries being caught in the Review validation (when trying to file) can appear multiple times in the transaction. I used the description value and ‘Date Sold’ values to match them together.
Description: 0.123456h Blah Blah (this can appear multiple times in the transactions list)
Date Sold: 03/15/2020.
You’d need to update the correct match in the actual 1099-b form transactions list page NOT in the Review page.
You can not change this in the review. A wash sale of less than 50 cents is automatically rounded to "0" by TT which is not an acceptable entry. Go the the income section and you can override the amount. The box cannot be zero, but you can delete the "0" and leave it blank. If you have a large number of sales in your 1099-B (over 1,000) turbo tax may crash when you try this.