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RegretsInvesting13
Level 2

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

Betterment made thousands of transaction, lots of which have a zero for the disallowed wash sale loss amount. I believe all the ones with zeros are profitable sales so it makes since that the loss amount would be zero.
1 Best answer

Accepted Solutions
AnnetteB6
Expert Alumni

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

The error messaging you are seeing with regard to the wash sale entries is a result of automatic rounding of the number imported from your broker or typed in by you.  If the wash sale adjustment is $0.49 or less, then it is automatically rounded to zero.  This type of rounding is allowed by the IRS.  Unfortunately, zero is not a valid value for this field -- thus the error message.

 

To resolve the issue, you can edit each individual transaction (although not from the screen in the review process) and delete the amount entered in the wash sale adjustment if it is $0.49 or less.  This will clear the error message.  

 

To do this, you will need to revisit the input section for the Form 1099-B transactions.  Use the following steps:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-B” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to 1099-B
  • Click on the blue “Jump to 1099-B” link
  • Click Edit beside the institution name
  • Click Edit beside each transaction that contains a wash sale adjustment amount of $0.49 or less
  • Delete the wash sale adjustment amount and click Done

 

If you have too many transactions that would require editing, you can consider deleting your imported information and entering a summary of the different categories of transactions reported on your Form 1099-B (short-term covered, short-term not covered, long-term covered, long-term not covered).  This would require you to mail a copy (not the original) of your Form 1099-B from your brokerage to the IRS within three days of filing your return.  The Form 1099-B would be attached to Form 8453, which will print with your return.  

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25 Replies
AnnetteB6
Expert Alumni

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

The error messaging you are seeing with regard to the wash sale entries is a result of automatic rounding of the number imported from your broker or typed in by you.  If the wash sale adjustment is $0.49 or less, then it is automatically rounded to zero.  This type of rounding is allowed by the IRS.  Unfortunately, zero is not a valid value for this field -- thus the error message.

 

To resolve the issue, you can edit each individual transaction (although not from the screen in the review process) and delete the amount entered in the wash sale adjustment if it is $0.49 or less.  This will clear the error message.  

 

To do this, you will need to revisit the input section for the Form 1099-B transactions.  Use the following steps:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-B” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to 1099-B
  • Click on the blue “Jump to 1099-B” link
  • Click Edit beside the institution name
  • Click Edit beside each transaction that contains a wash sale adjustment amount of $0.49 or less
  • Delete the wash sale adjustment amount and click Done

 

If you have too many transactions that would require editing, you can consider deleting your imported information and entering a summary of the different categories of transactions reported on your Form 1099-B (short-term covered, short-term not covered, long-term covered, long-term not covered).  This would require you to mail a copy (not the original) of your Form 1099-B from your brokerage to the IRS within three days of filing your return.  The Form 1099-B would be attached to Form 8453, which will print with your return.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

RegretsInvesting13
Level 2

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

Thanks for the help @AnnetteB6 . After navigating to the transactions list, it appears I have around 1000 transactions that would have to be manually edited if I wanted to e-file. Is this not a software bug? It rounds it to zero because if it's under $0.49 you don't have to include it, but you're not allowed to put zero so it's now created an error on the form. Shouldn't it just be automatically leaving that field blank instead of putting a zero?

 

 

krj4g2
Level 2

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

Manually editing hundreds of transactions is not a solution.  This is a bug in TurboTax.  Why does TurboTax never get this one part of a filing right ever!  It’s a unique bug related to 1099-B every single year!

madmaxlax
Level 1

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

agreed, this bug is a tremendous mess and hassle

kmw4491
Level 1

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

@AnnetteB6 Is there a solve for this in the works? 

judson_dunn
Level 1

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

Yes, this is a huge waste of time. I'll do this this year, but will move off Turbotax next year (9 year customer) if this can't be fixed.

krj4g2
Level 2

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

No.

 

I spent two hours with support and the best we could come up with was manually editing the problem entries on the 1099-B which took another 3 hours because of the terrible design of the page to do that.  The support tech was very nice and professional, she escalated this to her support team, and was as helpful as possible.  In the end the support team struck out and found the only solution was to manually change 1099-B entries :(

 

Who in the dev shop or UI team really thought that paging through entries 25 at a time searching for a single entry out of hundreds to thousands was sensible?  I need to find tax software that actually works with 1099-B’s.  Any suggestions on a competitor I can take my business to for next year?

BOOOO
New Member

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

Has anyone confirmed if TaxAct or HR Block do this import correctly? I will gladly call TurboTax to demand a refund (yes, TurboTax charged before I've even filed be return because I cannot get passed this **bleep** bug). This is a non-starter for me.

RegretsInvesting13
Level 2

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

Since TurboTax had already charged me also, I went ahead and followed @AnnetteB6 ’s instructions for how to file using a summary instead of the imported data, and it wasn’t difficult at all, and actually TurboTax asked for a pdf of the 1099-B and still did all the filing electronically for me - there was nothing I need to mail. 

Yes, it’s ridiculous that TurboTax doesn’t just handle it all automatically once you link it with your investment account, and it’s ridiculous that the fix is not clearer since this has got be a very common problem, but it’s not that hard to workaround. I probably won’t be abandoning TurboTax over this. 

amrinder
New Member

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

Is turbotax planning on fixing this issue? I am facing the same problem. I have already been charged for a premier package and this issue was not highlighted till I had already paid for it.

saeid137543
Level 1

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

i have the same problem like every one

I imported my 1099-B, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0

Friends With 401k Benefits
Level 1

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

I should think Turbo Tax should be able to change the field settings to allow it to be zero. This is really disappointing. Hopefully, they have this bug fixed soon.

RudyG1
Level 3

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

There should be an easy way to manually change the offending entry but there isn't!  This is a bug and it is preventing me from eFiling my State and Federal taxes.

 

Spent 1 hour with Tech Support yesterday. The person wasn't even aware of the bug, let alone a workaround.

mrthjm
New Member

I imported my 1099-B directly from Betterment, and now Turbotax is telling me the "Disallowed Wash Sale Loss Amount" for each transaction cannot be 0.

Hit this bug too.

Any recommendation of alternative services are appreciated.

I'd be very happy to move away.

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