I imported my Betterment info and it's getting caught up on this one issue: 1099-B, Sale includes a disallowed wash sale loss amt. ( 0.) which can't be changed to blank?

[mmn1239]

I paid for my returns and can't file because the auto Betterment import is getting caught up on this:

 From 1099-B (Betterment Securities) -- Capital gn......Accrued market discount should not be 0. Enter amount disallowed under wash sale rules, or leave blank if entire loss is disallowed.

Disallowed wash sale amt 0.

I tried deleting '0.' so that it's blank, but '0.' keeps re-populating...and I have no idea what this means and thought Betterment import was supposed to be automatic. I tried deleting my Betterment info and re-importing and the same issue persists. Help!

Any suggestions?

Thanks!

[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.  

[mmn1239]

Interesting, thanks for the quick response! 

When I delete each individual line item that has an amount < 0.49, I get the following prompt each time - what should I select for this situation (all transactions were just 'normal' auto Betterment transactions)?

Let us know if any of these situations apply to this sale

Select all that apply.

I paid sales expenses that aren't included in the sale proceeds reported on the form
Box 2 of my 1099-B has "ordinary" checked
I need to correct the holding period
This was a small business stock
This was a worthless security 
None of these apply

**Edit**

The answer above solved the original question.....and the process was pretty involved.....but now I'm running into a ton of other 1099-B/8949 'Check This Entry' prompts when attempting to import Betterment info (Basis reported to IRS yes or no/ description needed of property/sale price/Cost or Adjusted Basis/Date Sold/Date Acquired/Holding Period).  Not sure what to put for these entries either.

[Poohbearnah]

Have the same problem.  Imported 1099 info and there are 4 places with disallowed wash sale amount that is less than $.50 which turbotax rounds down to $0.  It will not allow $0.  I deleted the 0 and left them blank.  They are still flagged as errors.  I tried replacing them with actual amounts $.02, $.44, etc.  Turbotax changes the actual figures to $0 again.  I am not able to efile because these are still flagged as problems.  I wanted to take the X off the disallowed wash sale line item but I am not able to override.  Is there a workaround for this?

[CarissaM]

You would need to delete the entry within Turbo Tax. 

Please click on the delete icon next to the entry to remove it. 

If you need additional assistance, please click here to contact customer support. 

[mmn1239]

Hmm, when I deleted all of the values < 0.49, I was able to get past this stage. Fyi, I left all of the values that were initially 0.00 as is and didn't delete them. 

The biggest time suck was correlating witch Betterment csv line items correlated with the corresponding Turbotax line items.  I downloaded the raw csv file from Bettterment, made it a table in excel, and filtered out every wash values greater than 0 but less than 0.49 (0> wash_val <= 0.49).  And then aligned each remaining excel line item with the corresponding turbotax entry in their 30+ pages of entries. 

The next step where TurboTax wants to confirm 8949 values seemed sketchier to me.  It wanted to confirm what seemed like total values for: Basis reported to IRS yes or no/ description needed of property/sale price/Cost or Adjusted Basis/Date Sold/Date Acquired/Holding Period. But Betterment's 1099-B reports these in two separate categories (short-term and long-term)...and the Betterment summaries also list some of the values as 'Various', which turbotax doesn't accept as valid entries.  I gave up at this point, and just guessed values until it let me file.

@Turbotax, if the Betterment integration won't be improved upon and we have to manually do this every calendar year, can you at least make a software change to not revert back to page 1 of the 1099-B every time you save a manually edited 1099-B line item (this might shave off 1hr of the 3 hr process)?