How do I get the total gain amount to reflect the wash sale amounts entered?

[draughtsurvive]

I imported my form 1099-B directly from Fidelity. I noticed that there is a discrepancy in the total gain reported by TurboTax compared to Fidelity's 1099-B.

TurboTax -
Total gain: $3,891.37
Number of sales: 129
Proceeds: $34,958.10
Cost basis: $31,088.51

Fidelity -
Total gain: $3,869.59
Proceeds: $34,958.10
Cost basis: $31,088.51
Total wash sales: $21.78

The issue seems to be that the total gain calculated by TurboTax does not include the wash sale amount reported by Fidelity: $3,891.37 - $3,869.59 = $21.78

I checked each individual transaction with a wash sale and all of them include the wash sale amount.

My questions are -
1. Should I be concerned that the total gain amount reported by TurboTax does not include the wash sale amount, since the individual transactions report the wash sale amount?
2. If the total gain amount calculated by TurboTax needs to include the wash sale amount, how do I get it to do so since the individual transactions already include the wash sale amounts?

[DianeW777]

It depends.  The brokerage knows when a wash sale occurs, they do not know when it ends.  Only you know if the stock that is part of the wash sale(s) has been fully disposed of by the end of the year.  If so, then you should leave those amounts and include the final wash sale amount that is not included as a separate entry.  Wash sales must be reported separately from other sales.

Wash sales cannot be combined into section totals.  They should be entered individually so that you can track your cost basis and know when you are allowed to use the information on a final sale.

Wash Sale Rule Defined:

• A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar.
• It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days.
• The wash-sale rule prevents taxpayers from deducting a capital loss on the sale against the capital gain.

Affect on Cost Basis:

• The loss that occurs on a wash sale is added to the cost basis of the shares purchased that created the wash sale.
• When all shares are sold and there is no repurchase, that increased cost basis will be used in full and used to determine gain or loss.

As long as you are tracking the wash sales and are not using them on the tax return when you are not allowed, then you can simply enter the same cost basis as the selling price. This will  reconcile your tax return with your Form 1099-B Proceeds which is what the IRS is comparing.

Be sure to keep good records so that you know when to add those losses for future sales.

[fanfare]

After you enter the wash sales on Form 8949, use the subtotal results on the bottom of that form (Line 2) to know how much to subtract from your 1099-B totals which gives you the Schedule D line 1a totals. 

the grand totals for Box A will then coincide.

If you are a TurboTax Online customer you can't see Form 8949 until you pay, this is a problem.

If necessary, go to the Print Center to print your forms.

Then you have to reopen your tax return because TurboTax marks it closed.

Other tax software has more user friendly handling of capital gains.

@draughtsurvive