Investment 1099-B Check Entry Error

Forum|Forum|5 years ago
February 7, 2021
2 replies
30 views

Getting an error that I need to fix for a 1099-B on a stock investment with the following message: Accrued market discount should not be 0. Enter amount disallowed under wash sale rules, or leave blank if entire loss is disallowed.

The Wash Sale amount is less than a dollar, but not 0. I tried to enter the exact amount but the form kept deleting my entry. Tried 0, tried 1. No dice.

Best answer by AnnetteB6

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:

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

AnnetteB6

Answer

Employee Tax Expert

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:

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

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robs928

Level 2

I'm using the 2020 premier download/CD and the search for 1099-B did not bring up a jump to 1099-B.

I found to fix this problem, you have to edit the information that was entered in as part of the importing of the 1099-consolidated from my brokerage. This issue as described is correct in that you have to clear out any wash value if less than $0.49

NOTE: I could not fix the issue by going to the 1099-wks form that I was automatically navigated to via the check error validation. That form showed the field marked in red, but not editable. Spent a very frustrating hour hunting around for how to fix.

To clear the wash field, you have to edit the 1g field from the Stocks,Mutal Funds, Bonds, Other->Institution Name and edit the data directly. Edit the sale that generated the wash sale. It may take some deciphering of your Brokerage 1099-Consolidated and the error as reported by the Check Entry to find which sale needs to be edited as you'll just get a long list. Continue to the second page of the sale details until see Box 1g "Wash sale loss disallowed" and if its less then $0.49, then delete the value in that entry

I hope this save others of wasted time to fix the check entry error