1099B Wash sale populated zero during import.Check entry screen allows me to enter disallowed wash sale amount but continue keeps returning me.How do I correct the error?

[ReneeM7122]

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

Answer from AnnetteB6

[dashaunda]

Thank you for this information.  It worked. Apparently, also if there was no amount, the system generates $0 when imported. All have to be removed.  It is a tedious process if you have a lot of these but it does work. Hopefully, there is a resolution to fix this component.

[easterlee]

Thank you very much.  I hope this gets handled in TY2021 version, but your workaround works.

[BillB3]

I finally got TT to e-file my returns due to the populated zero problem caused by rounding on my wash sales 1099-B entries.  Thanks for your input that allowed me to get this done.  However, I spent at least 2 days trying to get a work around for this problem that Intuit/Turbo Tax caused. My post mentioned that Premier TT, which I use, didn't have this problem.  Not true, this a defect and problem with the software.  I would guess that the Intuit people could care less and it will never get fixed.  They will just blame the IRS, Apple, or anyone else they can blame.  It would be nice if Intuit would own some of the problems and give a work around without asking the community to do it.  In this case I should be able to turn off rounding globally or sign a waiver that I do not hold TT responsible for overriding this entry.  Or, how about fixing the problem. 

[jeff6303]

I am also running into this same issue where it disallows wash sale less non whole dollars.  Turbotax should really prioritize fixing this as this is a pretty bad bug that blocks users from progressing

[JohnB5677]

Here is a solution t 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.

[jeff6303]

@JohnB5677  this already occurred and is the root of the bug.  If the wash sale is less than $0.49 or less , the software rounds down to 0 but then when it goes to validate it fails validation as TurboTax validates that a W not have a 0 for the value In the review phase.

this is a bug and would be great to have intuit acknowledge it as such and get a resolution.

[llewis96]

Hi,

I have no 1099-B lines that have any amount in the Adjustment Column.

The error still will not clear as it will not accept zero as a valid value.

Any thoughts?

Thank you.

Larry

[WendyN2]

Yes, I do have a thought for you as this had to be done in past with many other tax software programs. Given that you most likely do not have nearly enough wash sales to add up to much at all (meaning, outcome is not pushing you into another tax bracket either higher or lower), my suggestion is that you adjust the wash to an even dollar. 

Having said that, if you imported your whole brokerage statement, and the system will not allow you to adjust only one line item (or how ever many wash sales you had), then you could do one of two things:

   1.  Print out (if you do not already have a hard copy) your brokerage statement (YOU WILL NEED THIS ANYWAY, FYI), and manually

          enter totals of (1) S/T transactions, (2) L/T transactions, and (3) wash sales - three lines in total. For each for their original cost basis,

          for S/T, enter a date that falls in 2020 and of course is prior to sale date, for L/T, a date more than 12 months prior to sale date (I

          usually do 14 or so months, but that's just me), wash sales -  same date set up as I just stated and it's up to you for the wash

          amount  as you can either tally up the cents, or just plug in $5 for that line, again it really has no net effect on the outcome. 

   2.  Export from brokerage acct. to Excel and do the same as stated above - but remember I said you will still need a physical copy of your

          statement(s) for the IRS.

Don't forget any/all Interest Income, Dividend Income, etc., as well as any foreign tax paid. 

For mailing into the IRS, you will need a copy of your brokerage statement(s), a copy of your 8949, and a copy of the related Schedule D. You will need to mail this to the IRS (same address as the mailing for the location of the Country that you live in) WITHIN THREE DAYS OF E-FILE ACCEPTANCE. I highly HIGHLY recommend that you mail in Certified Mail / Return Receipt Requested as this will be your only proof of date of mailing as well as proof that the IRS has, in fact, received your information.

[jeff6303]

This makes me sad to continue and see “solutions “ that require significant work on the user to work around what clearly is a bug in TurboTax itself.

this sadly negates the reason to use TurboTax in many ways...

Any intuit folks care to actually give an answer/solution that actually fixes the software bug?