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rtwoods
Level 2

Form 1099-B Worksheet override BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949"

I have data from just one of my 1099-B Accounts from Merrill Lynch which is going to Schedule D line 1a and 8a instead of Form 8949.  I found the worksheet for that particular account and it says BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949". It will not let me override or delete.

9 Replies
Mike9241
Level 15

Form 1099-B Worksheet override BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949"

for all security sales where the proceeds and cost are reported to the IRS and there are no adjustments, they can be reported directly on schedule D lines 1a and 8a - no 8949 entries

 

 

fanfare
Level 15

Form 1099-B Worksheet override BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949"

As an active investor, be aware that your category Box A or Box D sales without adjustments do not require Form 8949, so there is no reason to import or key in those transactions.
Instead use the "enter a summary" option to put your numbers on Schedule D Line 1a or Line 8a.
--
If you have wash sales, it gets more complicated since those adjusted transactions have to be itemized on Form 8949 and the summary totals adjusted accordingly.

Enter the wash sales on Form 8949, then use the subtotal results on the bottom of that form (Line 2) to know how much to subtract which gives you the Schedule D line 1a totals. Be sure to NOT check the adjustments box in the summary window.
--
Alternatively, if entry of Wash Sales is too tedious,
summarize and check the box for adjustments and enter the disallowed amount.
This summary will go on Schedule D Line 1b.
You will be making the mail-in election.

 

You still have the option to detail everything on Form 8949.

BUT, TurboTax has now started actively pursuing the EXCEPTION that eliminates Form 8949.

This makes it difficult if not impossible in some cases to detail everything on Form 8949.

 

You might try getting rid of that BYPASS8949 keyword and see what happens.

I don't have TurboTax 2020 so i can't try this.

rtwoods
Level 2

Form 1099-B Worksheet override BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949"

If done this way,  wouldn't I have to attach the detail from the 1099 or a copy of the 1099.  I would rather have TT flow everything thru Form 8949 and not attach anything.  Any way to do that? All the detail is already in TT worksheet ... it's just being suppressed because of their BYPASS8949 input which I can't figure out how to override.

fanfare
Level 15

Form 1099-B Worksheet override BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949"

@rtwoods 

At tax time, you have the option to summarize your transactions by Sales Category.

IRS requires details to be listed on a Form 8949,
or on your other forms (e.g. consolidated 1099-B) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize, you have to mail the transaction details to the IRS within three business days of IRS accepting your e-Filed tax return.(unless you have attached a PDF of the transactions details to your e-Filed return. TurboTax seems to be adding this feature now).
Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.

Critter-3
Level 15

Form 1099-B Worksheet override BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949"

Don't try to override it ... the IRS doesn't want it on purpose. 

rtwoods
Level 2

Form 1099-B Worksheet override BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949"

If all Forms 1099-B (or all substitute statements) you received show basis was reported to the IRS and no correction or adjustment is needed, you may not need to file Form 8949. See Exception 1 under the instructions for line 1, later.

In my case, we have numerous accounts and form 1099-B's (all handled by Merrill Lynch).  All were downloaded into Turbo Tax (as I have always done).  All of them except for ONE account are reflected on form 8949(s).  In this one account, there is one transaction with a wash sale.  This one transaction went to a form 8949 and all the remaining activity (with no adjustments) showed up on Line 1a and 8a respectively.  From the IRS Instructions, it appears you should only show activity on 1a and 8a IF ALL FORM 1099-B's did not have an adjustment.  

 

There is 143 transactions in this one account.  The information detail is in TT but I can't get it on a Form 8949.  This is very frustrating, not to mention time consuming.

If I can't get this overridden in the system and a form 8949 generated, it appears that I'll have to attach the detail to the return in another format (copy of 1099-B for this one account noting the one item that actually is in the form 8949).         

Critter-3
Level 15

Form 1099-B Worksheet override BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949"

Contact TurboTax support and speak directly with a TurboTax support agent concerning this situation.

See this TurboTax support FAQ for a contact link and hours of operation -https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number
They are available M-F  from 5 a.m. to 5 p.m. Pacific time.

fanfare
Level 15

Form 1099-B Worksheet override BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949"

" From the IRS Instructions, it appears you should only show activity on 1a and 8a IF ALL FORM 1099-B's did not have an adjustment.  "

 

Wrong.

 

Enter the adjusted transactions (wash sales), then use line 2 on form 8949 to know how much to subtract from the category subtotals included on Schedule D line 1a and or 8a.

This should be exactly what TurboTax did for you.

Totals on line 1a and 1b should sum to the total on your broker's 1099-B statement for those category A transactions.

 

You don't have to mail anything and you don't have to attach any PDF files in lieu of mailing.

There is no issue and no reason to contact Support.

fanfare
Level 15

Form 1099-B Worksheet override BYPASS8949 in ADJ CODE COL of "Sale Results for Form 8949"

The only reason to contact Support is to complain that you are stymied from detailing everything, which is permitted by IRS if you chose to do so and TurboTax could handle your number of transactions.

They will probably have no idea what you are talking about.

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