Gain (loss) 1099b worksheet error says accrued market discount should not be 0 under wash sale rules. It is chked for a wash sale loss with code w. Not a wash sale

[papawpetty]

How do I get the code w removed or unchecked??

[AnnetteB6 · Accepted solution]

This issue is currently being investigated and addressed by the appropriate team.  In the meantime, see the information below for two possible workarounds -- editing each individual transaction affected, or entering a summary of your transactions and possibly submitting Form 8453 and your documentation to the IRS.

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 may 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.  

[Jaytrikha]

This doesn't work. I'm having the same issue and it keeps looping me back.

[papawpetty]

I followed the instructions and made the correction. It should be corrected by turbotax in the future.  It was a tedious procedure.  You must search by sell date, My sell date was december and I had hundreds of transactions. 

[ohgigi]

how do I edit when there is no box 1g? It stops at box 1e

[imbluesky]

It doesn't work.

I went to the 1099-B section re-entered 0.02 but still recognized as 0. 

I tried it multiple times, but the same error message pops up. (See the Picture above)

Also, tried to type 0.02 on the Smart Check section, but I can't type in anything there.

There must be some sort of bug or error that can't read number in decimal point.

Please fix it asap.

Thanks.

[DawnC]

The changes required cannot be performed through the Review and/or Error Check screens.  You must return to the interview section to edit your entries, specifically, the wash sale adjustments.   @imbluesky  Annette has provided all the steps needed above, but I will summarize them below...

To do this, you will need to revisit the Form 1099-B entry interview.  Use the following steps:

• Use the Search feature by clicking on Search in the top right corner
• Type in 1099-B and hit enter
• In the results window, click on Jump to 1099-B
• Click Edit next to the issuer's name
• Click Edit beside each transaction that contains a wash sale adjustment amount of $0.49 or less
• Delete the wash sale adjustment, leave it blank, and then click Done

If you have too many transactions to edit, consider using the summary reporting option.