In previous years I've traded options on E*Trade and never remember having Section 1256 Reporting. This year, I traded a SPY Put that I bought and sold well before year end. The aggregate loss was nearly $3k. E*Trade reported this value in box 8 and 11 of the 1099-B and separately under "Options Subject to Section 1256 Reporting - Realized 1256 Options Contracts."
I am using TurboTax Online. My understanding is that under the Wages and Income section, I should be going to "Contracts and Straddles" to add this SPY Put loss.
First step - do I have any gains or losses from contracts or straddles to report? Yes.
Next step - any elections? Four options:
1. Mixed Straddle
2. Straddle-by-straddle
3. Mixed straddle account
4. Net section 1256 contracts loss election
From what I can tell by reading form 6781 on IRS.gov, I can omit any election.
Next is if any of the following apply
1. Section 1256 Contracts Marked to Market
2. Losses from Straddles
3. Gains from Straddles
4. Unrecognized gains
5. None of the above
Checking "none of the above" just returns me back to the Income section of TT Online. I think I should be checking "Section 1256 Contracts Marked to Market." Doing so allows me to enter the transaction with a net loss. When I do that, it brings me to the Section 1256 Contracts Summary page and the federal refund value increases.
However, when I click done and it returns me to the Income screen, it shows "2025: Not Started" for Contracts and Straddles - Form 6781.
Any ideas why that would be? The increased federal refund does indicates to me it is taking into account the loss but why would it continue to say "Not Started." Tried TurboTax phone support who didn't have a definitive answer. Any help would be appreciated!
