round sale and cost of sale to whole $. the IRS says 50 cents or more is rounded up. 49 cents or less is rounded down. then if the cost of sale is more than the sales amount make sure you enter the difference (which should be no more than $1) is entered
In the case of rounding a wash sale loss disallowed amount (like I have) of .15, .11, .20, it is rounded to 0, and the review of the info comes back as an issue with the amount of 0. It says it cannot be 0. I tried setting it to blank, and it takes and then comes back around again on review and never gets past this issue.
It depends. If the value was at least .5, Turbo Tax automatically rounded up the amount to one dollar. But if it was below 5 then no amount on the screen or just blank.
The wash sale doesn't allow deduction on a replacement stocks before or after you sold identical securities.
Yeah, that's the issue I'm running into - it won't take 0. and it won't take empty, and the amount is trying to round down to 0.
So do I have to just do this manually? Is there no way to fix it?
It depends. If you enter 50 cents, Turbo Tax will automatically rounded up the amount to one dollar. You may only enter the amount over 50 cents and skip or enter zero on amount less than 50.
The wash sale doesn't allow deduction on a replacement stocks before or after you sold identical securities.
Hi @JoannaB2 - thanks for the speedy response. The issue is the 0. Zero is not allowed in this entry. It must be non-zero, or blank. But the entire loss is .33, and the wash sale loss disallowed is .15. So TurboTax is rounding to 0, which is not allowed. When I try and erase it and leave it blank it will just come back around again
This is where it gets stuck. I cannot put in 0., and I cannot leave it blank.
You can put there $1, it won't create a tax liability for you and you will be able to move forward with your taxes.
@npierson7 Unfortunately even putting $1 in there brings it back around with the value populated with a 0, and the same error.
I'm sure that the IRS will have seen this before with other low cash flow newbie investors. I just decided to print it out and go for it. But I would definitely call this a software bug. You need to allow either a blank or a 1.00 entry on that line. Zero is not allowed (but that's how I sent it).
Hey, I'm having this exact same problem. It won't take 0 and it won't take $1.00. It just swings back around to the review and asks me to edit again
Negative. It does not work. See Rob's response -- It just comes back around to the same error (in my case, the amount was 21 cents). The solution I finally used, after speaking with one of the TT tax experts, was to delete all the transaction info I imported from my broker, and then manually enter a generic Capital Gains/Loss entry using just the summary numbers from my broker's info.
I agree that this seems to be a TurboTax bug. I just don't see how to submit a report on this.
Yes, we had this same problem today. Took me awhile to figure it out. I right-clicked in the field where there was an "error" where there was a zero, and clicked override, then it let me change the zero to a 1. Hopefully a few cents difference won't affect anything too much. But if turbotax could fix this for next year, that would be great.
When I right click I get the basic Internet browser right click menu. I do not get a option to "override". I don't have a printer. What a drag.
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 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:
I have the same issue and now it is preventing me from being able to file my taxes! The only way around it is to print out everything and mail it in instead of e-filing? Are you kidding me intuit??? GET THIS FIXED ASAP!
Wish this worked for me, but unfortunately it will not accept blank. Still blocking my ability to file.
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:
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.
Thanks for the reply. I imported my lengthy 2020 trade history form from Ameritrade. So I needed the step by step to get back to the form itself. The search function failed to get me there every time. Since I'm trading the same way in 2021, my real solution is going to be live preparation next year. I have outgrown the simple click through. The other night though I just went with another company that imported my Ameritrade info and and then was immediately taken to an editing form where I had to manually confirm a dozen disallowed wash transactions. I just wanted to get it done and now it's done.
Hi,
So what would be your suggestion?
Should we ignore error message on 0 during Smart Check and simply submit the tax return?
My return has about a dozen of transactions with < $0.5 throwing the same error message raised by the author of this post.
Thank you.
Hi Team---
Here's what worked for me, after I exhaused all the help I could find.
1. As Annette described, remove the detailed list of individual transactions.
2. Key in the summary 1099-B actvity by category.
3. THEN, if you have an adjustment to enter, make sure the correct reason code (in my case wash sale) is selected.
Finally, you can upload a PDF of your 1099-B and still e-file.