1099-B Adjustment codes - How to know what to use?

[jagman653]

Trying to translate my 1099-B from from Vanguard to Turbotax. There are several Total Stock Mkt Idx Adm to Federal MM transaction. There are non-zero amts in box 1g for one of these. I elected to enter the summary instead of each individually. When I check the  TT box to say I need to enter the amount, enter the  amount TT wants me to provide 1 or more Adjustment codes. I am clueless as to how to choose these adjustment codes. I can find the list of accepted codes in the IRS documents, but nothing in the Vanguard form to tell me which one to use.

What am I missing?

[AmyC]

You will need to contact Vanguard.

[fanfare · Accepted solution]

you have the option to summarize by Sales Category.

if you are going to try to aggregate certain transactions using the 'summarize option', you will need to aggregate transactions with the same adjustment code.

The code is shown on your 1099-B.

I wouldn't recommend this, since you must provide the details sooner or later but use your own judgement.

If you aggregate adjusted transactions with the same code,

OR, you aggregate (summarize) the entire sales category, you are making the Mail-in election.

Then  you have to mail the transaction details to the IRS within three business days of IRS accepting your e-Filed tax return.

IRS  instructions permits aggregation only for Category A or Category D transactions without adjustments. For those, no Form 8949 is required.

[jagman653]

Thanks. I have abandoned the Summary option and did one by one. The issue of adjustment codes doesn't come up. What a screwball tax world we have created :(

[OEBBECKE5]

Keeps asking for an adjustment code  for "1g Wash Sale Loss Disallowed of 14.  What do I need to do?

[OEBBECKE5]

Need help with 1099 B adjustment code

[JohnB5677]

The adjustment code for a Wash Sale is "W".

• A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar.
• It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days.
• The wash-sale rule prevents taxpayers from deducting a capital loss on the sale against the capital gain. 
• Wash Sale Rule
• To enter a disallowed Wash sale:

Income & Expenses

1. Scroll to Stocks, Mutual Funds, Bonds, Other
2. Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2020?
3. On the OK, what type of investments did you sell? screen, select Stock, Bonds, Mutual Funds. Then select Continue.
4. From here, you can import or manually enter your 1099-B.
5. Answer the questions about your sales. Choose to Enter sales one by one when asked.
6. On the Now, we'll enter one sale on your 1099-B screen, enter your info.
7. Check I have other boxes on my 1099-B to enter and enter the disallowed wash sale loss in box 1g.
8. Select Continue and answer any follow-up questions.

Note: You'll need TurboTax Premier, TurboTax Live Premier, or TurboTax Self-Employed, TurboTax Live Self-Employed, to add any 1099-B forms.

@OEBBECKE5