Disallowed wash sale is under $0.50, which rounds to $0 and is disallowed. Unable to update field or move forward with form.

[Charles-Montgomery]

I am unable to uncheck the field in a 1099-B form that says "Sale includes a disallowed wash sale loss". The amount is $0.47 which is rounding down to 0 and 0 is not allowed in that field, so I need to check the box. I am not able to do that or update the field to 1 and therefore cannot submit my taxes. What do I do?

[Crabgrass]

I have the same issue.

[Charles-Montgomery]

I spoke with a customer service representative. They had me open the forms directly in TurboTax, go to the 1099-B, and delete the wash sale amount that was for under $0.50. I then went to the forms for each investment, found the line that referenced the wash sale amount, and right clicked on the checkbox. I then hit Override and unchecked the checkbox. I then right clicked on the input box on that line that included the $0 in wash sale amount, hit override, and deleted that. I then repeated that 2 more times, since there were multiple investments that had that issue (there were red exclamation points next to each file when looking at the file list on the left side). I then went back to the Step-By-Step process in TurboTax, re-ran the check, and the errors were gone.

[kfelix8]

I was able to delete the amount. Did a review, still got the pop-up box with the same message. Deleted the one line and entered it back in. Same result. Deleted the whole form. Uploaded it from Betterment again. Same result.

I want to delete the whole thing but turbo tax will not permit it since I already gave them my payment info. I'm screwed until I can get this fixed.  Obviously a bug, I hope they get it fixed soon. 

[kfelix8]

P.S. I also changed the amount to $1.00 with the same result.

[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 (although not from the screen in the review process) 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

If you have too many transactions that would require editing, you can consider deleting your imported information and entering a summary of the different categories of transactions reported on your Form 1099-B (short-term covered, short-term not covered, long-term covered, long-term not covered).  This would require you to mail a copy (not the original) of your Form 1099-B from your brokerage to the IRS within three days of filing your return.  The Form 1099-B would be attached to Form 8453, which will print with your return.  

@kfelix8

@Crabgrass