How to still e-file if rejected?? Overdue, Need Instant Help!!!!

[YaoyuBrancheau]

Hi, 

This is the 2nd year that my e-file on TurboTax being rejected!  I now live in France under a study; if I mail in, it’s 75 pages!  My sole income was from stock trading, dividends & bank interest.  I use the 3rd-party access for TurboTax to import all my 1099 prepared by my broker also as my bank.  However, TurboTax keeps showing “Needs Review” without pointing out on what pages I can find the numbers to fill in manually, and I have 500 pages of 1099 from my broker!

Last year I mailed in, no questions from IRS; but because of mail-in, I still have not received my tax refund!  This year for being overseas, 75 pages to mail in, may I just first e-file on TurboTax, and IRS contacts me if they have questions??  I really need help on this……😱😱

I talked to my broker, they claim they have disclosed all information required by IRS, and there is nothing else that TurboTax cannot get from the 3rd-party access! 

If I cannot e-file this year, I think I’ll drop TurboTax, it’s not as convenient as it advertises……☹️

[bosso3]

I'm not sure this will work, but I suggest you try rerunning the "Federal Review" and "Smart Check".

These will often point you to a specific form or worksheet.  They are both located under the "Federal Taxes" tab which is at the top of your screen on the gray bar.  If this shows what to change, do so, and rerun the review until no errors are found.

If this does not work, you can use the forms method to manually browse each of your tax forms.  If forms have errors, they may appear highlighted in yellow or red.  It may be tedious to do so for 500 entries, but if you want to find it, it may be needed.

To use the Forms Method:
Click the "Forms" icon in the blue bar at the top right of your screen.
From the list of forms, click the form you want to review.
Review as many forms as needed.
Hint: You can also review your state(s) forms here.
To return to the step-by-step process, click the "step-by-step" which is in the blue bar at the top right of your screen, where the "Forms" icon formerly was located.

Another alternative is to use the "Print Preview" Method.  This creates a PDF file that you can browse, use the "find" function on and if you choose, it can include all documents, worksheets and forms.

To Use the "Print Preview" Method:
Click the "Print Center" tab. It is located in the upper right corner next to a printer icon on the gray bar.
Click on the radio button that has the pages you want to view.
Click the "Preview Print Copy" button.
This will create a PDF that you can browse and review. You can also print or save this pdf if desired.
Before you file, I suggest using this method to save on your computer a PDF file that contains "Tax Returns, All calculations." This provides you a file you can use for future reference if needed.

For online product users
To see all these forms you need to pay any fees first with a credit card.
https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

If none of this works, your idea of paper filing and letting the IRS sort it out is a viable alternative.

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[bosso3]

One last comment:

If you think you will owe the IRS money, you can make a payment any time.

IRS payment options are listed here

https://www.irs.gov/newsroom/irs-payment-options

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[YaoyuBrancheau]

bosso3, thank you with my whole heart and I'll follow your instructions this weekend!  I've been feeling depressed over this issue.  Now I live overseas, cannot just walk in a CPA office; also I'll have to deal with the same situation next year, so, why not try to fix it this year!  But, 500 pages of 1099 to go through vs. 75 pages to mail in internationally to IRS........either one makes me want to cry!!!!  😭😭

Please be so kind and check on my post this weekend, I may have more questions when going into details.  😥

[Critter-3]

You can quickly enter this manually.  Your brokerage statements should include a summary of your transactions, grouped by sales category.

There are seven possible "Box" designations that indicate the holding period (Long/Short Term) and the reporting status.  These are the only ones you have to summarize. If you want to manually enter your 1099-B as the summaries.

1. Tell us about your 1099-B sales for this BOA account
1. Answer the questions
2. Since you have more than a few BOA sales, we recommend entering sales section totals
1. Continue
3. Before entering sales section totals, take a moment to find them on your 1099-B
1. Continue
4. Now, we'll enter one sales section total on your BOA 1099-B
1. Use the drop down menu to select the correct designation.

Code A. This code indicates a short-term transaction for which the cost or other basis is being reported to the IRS. Use this code to report a transaction that the recipient will report on Schedule D (Form 1040), line 1a, or on Form 8949 with box A checked with totals being carried to Schedule D (Form 1040), line 1b.

Code B. This code indicates a short-term transaction for which the cost or other basis is not being reported to the IRS. Use this code to report a transaction that the recipient will report on Form 8949 with box B checked with totals being carried to Schedule D (Form 1040), line 2.

Box C. Report on a Part I with box C checked all short-term transactions for which you can't check box A or B because you didn't receive a Form 1099-B (or substitute statement).

Code D. This code indicates a long-term transaction for which the cost or other basis is being reported to the IRS. Use this code to report a transaction that the recipient will report on Schedule D (Form 1040), line 8a, or on Form 8949 with box D checked with totals being carried to Schedule D (Form 1040), line 8b.

Code E. This code indicates a long-term transaction for which the cost or other basis is not being reported to the IRS. Use this code to report a transaction that the recipient will report on Form 8949 with box E checked, with totals being carried to Schedule D (Form 1040), line 9.

Box F.  Report on a Part II with box F checked all long-term transactions for which you can't check box D or E because you didn't receive a Form 1099-B (or substitute statement).

Code X. Use this code to report a transaction if you cannot determine whether the recipient should check box B or box E on Form 8949 because the holding period is unknown.

Open or continue your return (if it's not already open) and search inside TurboTax for the phrase stock sales.

1. Select the Jump to link in the search results.
2. Answer Yes to both Did you sell stocks, mutual funds, bonds, or other investments? and Did or will you receive a 1099-B form or brokerage statement for these sales?
• If you land on Here are all your 1099-B sales, select Add sales from a different brokerage. Then answer Yes to Did or will you receive a 1099-B form or brokerage statement for these sales?
3. When asked how you want to enter your 1099-B, select I'll type it in myself.
4. Select or enter your brokerage on the next screen and continue.
5. On the following screen (Tell us about...), answer the questions until you reach the next screen. Select the second option, Let's enter a summary instead, and select Continue.
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.

When you are done, you'll eventually come to the Here's a summary of your broker sales screen where you can edit, delete, or enter more sales.

You will have to mail a copy of your 1099-B to the IRS.  TurboTax will produce a Form 8453. You print the Form 8453 and attach the brokerage statement(s) to it. 

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).
Only Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.
If you don't have a 1099-B from coin base (crypto) your sales category is C or F.

There is no exception for these categories.

[bosso3]

Observations:

1)  Critter-3 makes a very good suggestion to report the transactions using a summary method instead of the detailed method.  This could greatly simplify the reporting and, if needed, trouble-shooting.  If you do this, be sure to save the details and summary documents, in case the IRS asks for that info.

2)  Just because you live outside the USA does not mean that you could not hire a CPA in the USA.  In this day and age of electronic communications and internet connections, I think it would be feasible to explore this option.  I would not dismiss this as a viable alternative without exploring the possibilities.  You may be able to get referrals from friends or family back in the USA.

3)  Turbotax offers a full service option for experts to complete your return for you.

https://turbotax.intuit.com/lp/ppc/4181

I think H&R Block also offers this option.

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[YaoyuBrancheau]

Critter-3, I really have no clue what you were saying!  😓

If you are a TurboTax employee, please kindly take my note......

This will be my last year using TurboTax!  The same situation happened last year, I had to mail in, IRS never asked me any questions; but delayed the process because it was a mail in.

My work cannot be more simple, I trade stocks for living, no options, no commodities, and a very small position on cryptos!

As a software provider & with the 3rd party access, TurboTax shall take care of this issue for me.

But now I have to type in numbers manually, and the Customer Service even hung up on me......😩 

[YaoyuBrancheau]

Bosso3, I'm on the final step!  

What shall I do about this??  I cannot find Schedule A or B on my 1099 Forms!  😱😱

Schedule B -- Form 1099-DIV (CHARLES SCHWAB & CO., INC.): Foreign tax Sch A box or Form 1116 copy should be entered. Return to the place where this was entered to correct the entry.

Foreign tax Sch A box

[bosso3]

Ahh ha!   This seems to be related to foreign taxes, how to report and how to obtain a credit on your US tax return for the taxes you paid to foreign governments.

Unfortunately, I know very little about these topics, and I don't think I can help much.

Here are some notes regarding your comments.

Schedule A, is itemized deductions.  You likely used the standard deduction.  If so you do not have (and should not have) Schedule A. 

Schedule B is a summary of Interest and Ordinary Dividends.  It is determined from your 1099-INT and 1099-Div forms, and possibly other forms that report interest paid to you. 

From your most recent post, it seems the 1099-DIV from Charles Schwab needs to be examined.  Possibly for foreign taxes paid.

Form 1116 is for Foreign Tax Credits.  See https://www.irs.gov/pub/irs-pdf/f1116.pdf  and

https://www.irs.gov/publications/p514

I do not know how this is completed in turbotax.

I am copying @Critter-3 and @VolvoGirl with the hopes that one of them knows more about this situation, or can point you to someone who does.

Good luck.

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[YaoyuBrancheau]

Bosso3, I spoke with a customer service staff and he helped me e-file, finally!  😅

He said Schedule A is for tax deduction and 1116 (Form) is for tax credit.

And I manually entered all numbers TurboTax required without sufficient explanations....😭

I have another 2 questions......

1.  my sole income is from trading stocks, may I claim Self-Employment, and file trading related expenses from the past 3-5 years?  🤔

will I need to first apply  for a Self-Employment ID or number from IRS?  🤔

2.  according to the online record, last December IRS sent a 2020 tax refund check to my old place but I've never received it.  

If someone stole and cashed the check (eg, my ex-landlady was a greedy woman), will IRS send me another check??  🤔

With my whole heart, I thank you for all your help!  😘

[bosso3]

I'm glad to hear you were finally successful.  Thank you for your kind words.

For your files, and for next time, I suggest you make notes about what you did and file them with a printed or electronic copy of your taxes.  I described how to print or download a copy of your return and worksheets using "Print Preview" in my initial response to your post.

Now for your questions.

1a)  The first task is for you to determine if your stock trading is a business or a hobby.  References follow

https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax...  this includes links to other IRS sites.

https://www.irs.gov/pub/irs-news/fs-07-18.pdf

https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a... 

You can also GOOGLE "business hobby irs OR turbotax"  (without the quotes, but with caps as typed for the word OR.)

1b)  If your activity qualifies as a business:

1b1 -  You do not need to get a Self-Employment ID, or TIN.  You can use your SSN. 

1b2  - You may file Schedule C  Profit and Loss from Business.  This allows you to deduct business related expenses from your profits.   If you do so, you will need to pay self-employment tax on your profits.  There are multiple advantages and disadvantages involved in using Schedule C - many of which I am not familiar with.  You may want to consult a professional for advice.

1b3 -  For 2022, (or maybe for 2021) You may want to consider using a turbotax download product (not the online version).  This would allow you to make a copy of your file (change the name so you don't overwrite the original), make changes and see the difference between filing as a business or not.  Then choose the one most advantageous.

1b4  - On Schedule C You can only deduct expenses incurred in the tax year of the return.  If you wanted to deduct expenses incurred in 2020, you would have to file an amended return for 2020.  The same applies for previous years.

1b5 - Filing as a business may add complexity to your tax preparation.

2)  Regarding not receiving your 2020 tax refund check, refer to

https://www.irs.gov/faqs/irs-procedures/refund-inquiries/refund-inquiries-0

End Note:

I suggest you start preparing your taxes earlier next year, to avoid the pain and suffering involved with missing the deadline.  This would also help you avoid the rush of people at the deadline and hopefully speed access to support.

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