Investment 1099-B Check Entry Error

[nordi1997]

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.

[AnnetteB6 · Accepted solution]

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

[robs928]

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