How to add a nonbusiness bad debt? Where in turbotax can I "attach a separate bad-debt statement to the return" (as IRS *requires*)? Thank you.

[lopez-post]

@macuser_22  That is simply not what shows up in turbotax 2019 premier online.  Regardless of whether I follow your steps or any other steps I've read, the screen I posted is the one that finally shows.

Turbotax 2019 premier online edition always takes you to this question:

"OK, what type of investments did you sell?"

Then it presents a choice of Stocks etc. (i.e. 1099B's etc), or Other. Selecting "Other" takes you to the screen I showed. (Selecting Stocks does not help either). I tried every permutation. There is no "bad debt interview" screen in the online 2019 premier version.

I assume you're using a CD version, or a version other than Turbotax 2019 premier online. What version are you using?

[macuser_22]

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@lopez-post wrote:

@Critter, Thanks. Do you think this information from Turbotax is the way to do it?  It shows up in the Turbotax help for Form 8949 but does not mention bad debt (however bad debt does go on Form 8949 and Sch D):

That is what the explanation statement is for.   Print all forms for filing and the explanation statement should be there.

[lopez-post]

There is no explanation statement asked for in 2019 Turbotax online premier (no "bad debt interview") and so no way to e-file it.  But I wonder if I can follow the 8949 directions and mail one within three days after emailing to that address given in the 8949 Turbotax directions (the one that however does not mention bad debt).

@macuser_22 Please let us know what version of turbotax you are using that has the bad debt interview (maybe CD? or maybe a different online version than premier or a different year than 2019?). 

[lopez-post]

@fanfare 

Thanks, to clarify any confusion: the problem is that the 2019 Turbotax premier online does NOT provide an interview for bad debt so it never gets the right information it needs to print out or to efile to IRS.

The question now is, given that there seems to be no way to tell Turbotax 2019 premier online all the information IRS requires for a nonbusiness bad debt deduction (short term capital gains loss), can I efile it and then separately mail the information required to IRS, based on this Turbotax help topic on Form 8949 (nonbusiness bad debts are listed on Form 8949 and Schedule D, although this Turbotax help topic does not mention bad debt):

If you're required to mail in forms 8949 and 8453, do so within 3 days after the IRS has accepted your e-file. Here's the mailing address:

Internal Revenue Service Attn: Shipping and Receiving, 0254 Receipt and Control Branch Austin, TX 73344

(That zip code is actually a zip plus four that ends in -0254.)

[fanfare · Accepted solution]

Talk to TurboTax Customer support for a way to get the CD/download version if you already paid for Online.

OR

if you did not pay, just quit Online and use the CD/download version.

[macuser_22]

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@lopez-post wrote:

Thanks, to clarify any confusion: the problem is that the 2019 Turbotax premier online does NOT provide an interview for bad debt so it never gets the right information it needs to print out or to efile to IRS.

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 I think you are correct.  I created a test account for online Premier and while the "Tools", search topics indeed has a "bad debt, non-business" entry, and it does take you to the investment interview, there is no choice (that I can find)  for the bad debt once you get there. 

I suggest calling TurboTax support on Tuesday (after the holiday) and present the issue to them.

There is no single published number because it changes contently depending on the nature of the call and agent availability. Following the link below will either give a current number for you to call or take your number for a callback.

(Note that phone support is for paying customers only. There is no phone support for Free Customers.)

Here is a TurboTax FAQ for contacting customer support.

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

[lopez-post]

Thanks, I'll call them up Tuesday and see if they let me transfer the information to the CD version. I haven't paid yet but really don't want to start everything from scratch!

If worst comes to worst I'll pay, print out the return, manually add form 8949 and the bad debt addendum myself, and mail it.  (That's probably better than using the special IRS form 8949 address, in terms of not asking for mix-ups. )

(It would be better if Turbotax had parity between online and CD versions.)

[macuser_22]

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@lopez-post wrote:

(It would be better if Turbotax had parity between online and CD versions.)

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There should be.  There are very few things that can be done on the desktop version that cannot also be done online.  Other than this, I cannot immediately think of any other.

(There are that some situations that the TurboTax interview (online or desktop) that are not supported, but can be done by using the forms mode for direct form entry that can only be done on the desktop version.  This situation does not fit into that category. )

[Anonymous]

the desktop deluxe version will have the ability to include the statement that is required. 

[JPF50]

Actually, turbotax will add the statement for you if you enter the bad debt in the  correct location. This is not new as I have used it in years past.  Just click Federal Taxes button, then "Deductions and Credits" and scroll down to "Other Deductions and Credits" and you will find "Nonbusiness Bad Debt". When you answer the questions, Turbo tax will make the appropriate entries, including the required attachment.

[lopez-post]

@JPF50 

No, actually that depends on the turbotax version. The online version is unable to do it correctly (this is a common source of confusion, if you read the entire thread); this limitation of the online version was confirmed by turbotax technical support. They allowed me to exchange it for the more powerful turbotax CD/desktop version. (Note: At least, this was true of past years; it could be that they've added it recently.)

[JPF50]

@lopez-post You may be right as I have not used the online version. The version I used this year was the downloaded deluxe. In previous years I've used the CD deluxe version. So my comments are restricted to those versions.  Hope this helps.