You can enter that as a loss on Schedule D
In TurboTax go to
Wages & Income
Investment Income
Stocks, Crypto, Mutual Funds, Bonds, Other START or UPDATE
Select “Stocks, Bonds, Mutual Funds (1099-B)”
Skip Import, Select I'll type it in myself and enter Bank or Brokerage and CONTINUE
Select No for Employee Stock (You won't need this option)
Select No (1-3) for More than three sales
Select Yes for “Other types of investments”
Select Yes for “Did you buy every investment?” and CONTINUE
Select One-by-one for “Now, choose how to enter your sales” and CONTINUE
For the Sales section drop-down choose “Short-term or Long-term did not receive 1099-B”
For Type of investment, Select Stock (non-employee) (You don't need the Employee Stock Option)
Enter Description, Dates, Sale Proceeds, and Basis (your basis is the strike price plus any discount that was included as income, but there might be no discount) and CONTINUE
Select “This was a small business stock” and “This was a worthless security” for the “Let us know if any of these situations apply to this sale”, screen and CONTINUE
Select “I don’t want to make any changes to my cost basis right now” and CONTINUE
Select "None of these apply" on the "What kind of small business stock did you sell?" screen
The loss will be on Schedule D and carry to your 1040 line 7.
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