1099 - B

[Landr42]

I have a 1099 -B  Vanguard sold funds to collect Account Service yearly fees .  The form looks like i made money when I didn't.

how can i report it so i don't pay taxes on something I didn't get?

[JamesG1]

You should report the IRS form 1099-B.  If Vanguard is reporting an IRS form 1099-B to the  IRS, the IRS will be expecting you to report that income on your 2023 Federal income tax return.

The Account Service fees are investment expenses and are not deductible for tax years 2018 through 2025.  Prior tax law allowed you to report these expenses as miscellaneous itemized deductions subject to 2% of your adjusted gross income.

Some states still allow that deduction.  If your state will allow that deduction, enter the fees under Other Investment Expenses under Retirement and Investments and Deductions and Credits on the Federal portion of TurboTax Online.  The expenses will flow to the state income tax return.

[Landr42]

Thanks for getting back to me .. 

So other words it looks like i made the money instead of losing the money?

Nothing in the 1099 B to report the loss?

[JohnW152]

That's correct.  

As JamesG1 explains above, you would've been able to deduct the fees on your federal return under prior tax law, but you can't now.

The 1099-B income is considered taxable, and the fees can't be deducted on your federal return.

[VolvoGirl]

I had some fees on a sale and there was a spot on Turbo Tax to enter it and it reduced my gain.  

[crash345u]

Is there a difference in this case because your fees were directly related to your specific 1099-B transaction but the OP's fee's were for general investment services throuought the year? 

[ThomasM125]

Fees directly related to the sale of a security would be allowed as an increase to the cost basis so they would reduce the taxable gain on the sale of a security. Investment expenses that are associated with general investment management duties  cannot be deducted in that fashion, as described by @crash345u