How to enter manually 1099 summary with washsales

[ykretov]

Hi, I have a problem with importing 1099 from my broker (Tastytrade). For some reason the import fails without any error message.

I do have a PDF version of 1099 fro the broker, but I do have a lot of transactions...

When I try to enter manually just the summary (cost base/proceeds) there is no way to add wash sale data..

So my P/L is significantly different fro what I see on PDF 1099.. 

How can I enter the summary without entering every single transaction malually?

Or, If I "fake" either of those - to make the final P/L to match the real number reported to IRS?

- adjust Total proceeds (sum of all Box 1d)

- or adjust Total cost or other basis (sum of all Box 1e)

Would not IRS be surprised more when it detects unmatched number for Total, or Cost, or P/L?

[DianeW777]

No, the IRS will not be surprised by summary totals. It's important that your total proceeds equal the total on your 1099-B.

 You can certainly use the summary method to eliminate entering every transaction (very common). See the entry steps below.

You can always use direct entry if you choose, with summary totals.  The only exception if wash sales, which must be entered separately, if you have any.

Summary totals must be separated by short term, long term and wash sales

1. Long term: held more than one year (one year plus one day)
2. Short term: held one year or less

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.

TurboTax Online/Mobile:

1. Open or continue your return (if it's not already open) and search for stock sales > Select the Jump to link in the search results
2. Answer Yes to Did you sell any of these investments in 2024?
   • If you land on Your investment sales summary, select Add more sales
3. On the OK, let’s start with one investment type screen, select Stocks, Bonds, Mutual Funds, Other, then Continue
4. On the Let's import your tax info screen, select I'll type it myself
5. Step through the interview and select Sales section totals when prompted to choose how to enter your sales
6. 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
7. You can add additional sales totals by selecting the Add another sales total on the Review your sales section totals screen

TurboTax Dekstop:

1. Open or continue your return (if it's not already open) and search for stock sales > Select the Jump to link in the search results
2. Answer Yes to Did you sell any investments in 2024?
   • If you land on Here’s all the investment accounts we have so far, select Add more sales
3. Answer Yes to Did you get a 1099-B or a brokerage statement for these sales?
4. On the screen Let Us Enter Your Investment Sale Info, select I’ll type it in myself and Continue
5. Enter the name of your bank or brokerage on the screen Which bank or brokerage sent you this form? and Continue
6. On the screen Tell us about your 1099-B, select I’ll enter a summary for each sales category
7. 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
8. On the screen Do you have another sale to enter from your 1099-B? select Yes to enter more sales from your 1099-B, or No to see a summary of the sales you already entered, then select Continue
9. Once you’ve entered all the sales on your 1099-B, you’ll see a summary of all the sales reported. Select Done

If you are e-filing your tax return, then mail your statements (1099-Bs or other document showing detailed sales information) along with Form 8453 to: 

Internal Revenue Service

Attn: Shipping and Receiving, 0254 

Receipt and Control Branch 

Austin, TX 73344-0254

If you need a blank Form 8453, you can download this pdf, enter your address information and check the box for Form 8949 (this form is really just a cover sheet)

@ykretov

[Edited: 02/22/2025 | 12:02 PM PST]

[baldietax]

You can input the wash sales as detailed "one by one" entries which will go onto Form 8949, subtract these from your 1099-B totals and input the remainder as sales summaries, it will all be consolidated on Schedule D.  Hopefully you don't have many wash sales.  You shouldn't need to mail anything in if all the adjustment details are on Form 8949.