1099B trading binaries

Forum|Forum|6 years ago
February 20, 2020
10 replies
63 views

I have received a 1099B from Nadex for trading binaries last year. The only box with info is Box 8. But Box 8 doesn't appear in Turbo Tax. I made a profit of $55.00. How do I put this into Turbo Tax?

Best answer by DaveF1006

In your return, go to federal>wages and income All income>Investment Income
Show more>Stocks, Mutual Funds, Bonds, Other>start
You should reach a screen that says Did or will you receive a 1099-B form or brokerage statement for these sales? YES
Next screen you will scroll to the bottom and say you will type it in yourself
Then scroll and answer the various questions until you reach a screen that says Now we'll walk you through entering the info on your 1099-B
in the first screen, select options since the Binary is an option
Next screen will ask if this is a short-term sale or long term. more than likely, it is short-term.
Then answer when it was bought or sold and go down to proceeds and enter the $55 amount. This is the gain on your option. As for cost basis, leave that blank because since that $55 is profit from the option.

DaveF1006Answer

Level 15

In your return, go to federal>wages and income All income>Investment Income
Show more>Stocks, Mutual Funds, Bonds, Other>start
You should reach a screen that says Did or will you receive a 1099-B form or brokerage statement for these sales? YES
Next screen you will scroll to the bottom and say you will type it in yourself
Then scroll and answer the various questions until you reach a screen that says Now we'll walk you through entering the info on your 1099-B
in the first screen, select options since the Binary is an option
Next screen will ask if this is a short-term sale or long term. more than likely, it is short-term.
Then answer when it was bought or sold and go down to proceeds and enter the $55 amount. This is the gain on your option. As for cost basis, leave that blank because since that $55 is profit from the option.

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mitch4949

Level 2

This does not help because Nadex options were traded many many times over many many days. The 1099-B doesn't give that information. Manually entering each and every one of the hundreds of trades is just not doable. There is no way to enter the date in #8 of your post.

JulieS

Level 15

It sounds like maybe your 1099-B form is for 1256 investments or straddles, since you say there are no dates on the form.

If your 1099-B has information in boxes 10 and 11, you need to report this information on Form 6781. Here is how to do that:

Select Federal from the left side menu.
Select Wages and Income toward the top left.
Scroll down/ expand the list and look for Investment Income
Find Contracts and Straddles and click on Start or Update to the right.
Answer the first question Yes.
Complete the rest of the section to report your gains or losses.

If you actually do have dates on your 1099-B, but just don't want to enter them individually, you can enter your information as summary transactions in TurboTax. This will allow you to enter a summary transaction for all of your sales in the same sales category, for example - A, Short term covered.

Select Federal from the left side menu.
Select Wages and Income toward the top left.
Scroll down/ expand the list and look for Investment Income.
Click Start to the right of Stocks, Bonds, Mutual Funds, Other.
Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2021?
If you land on Your investment sales summary, select Add more sales
On the Let's import your tax info screen, select I'll type it myself
Continue and select Sales section totals when prompted to choose how to enter your sales
You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and category. When finished, select Continue
You can add additional sales totals by selecting the Add another sales total on the Review your sales section totals screen.

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Bsmitty007

Level 2

Did you ever figure out how to file these binary options? Im having trouble this year just like you did.

DianeW777

Level 15

You can report your binary options by using the steps below. These are investment sales for tax purposes.

Sign into TurboTax then select Wages and Income > Investment Income
Show more > Stocks, Mutual Funds, Bonds, Other > Start or Update
You should reach a screen that says 'Did or will you receive a 1099-B or brokerage statement for these sales?' YES
Next screen you will scroll to the bottom and click 'I'll type it in myself'
Answer the various questions until you reach a screen that says Now we'll walk you through entering the info on your 1099-B
On the first screen select Options (since the Binary is an option)
Next screen will ask if this is a short-term or long term sale
1. Holding period (one year or less = short term/more than one year = long term)
Then enter the date(s) they were bought or sold and go down to proceeds and enter the total sales amount.
This is the gain on your option