Schwab 1099-Composite

[artg]

Good morning Community.

About 11 months ago I engaged this community about the Charles Schwab 1099-Composite and received tremendous support.  In fact, the support I received allowed filing my 2020 brokerage account distributions (Dividends, Interest and Capital Gain distributions) very easy.  Therefore I'd like to try again in preparation for filing my 2021 return in about 4 months.

Specifically, in the same Schwab brokerage account we sold some mutual funds in 2021.  Of course they generated a Capital gain which will have to be reported.  When I import the 2021 Schwab 1099-Composite I understand it will contain the necessary 1099-B information.

How does that "sell" information get entered into TT?  In other words, when I tell TT that we "sold a mutual fund" what will happen?  Obviously this is a first time for me so I'd appreciate the TT community lending thoughts and/or experience.  Thank you.   

[fanfare]

"when I tell TT that we "sold a mutual fund" what will happen? "

This step is unnecessary.

The 1099-B has the needed information already on it.

[artg]

fanfare:

Thank you but may I ask you to elaborate on your answer please?

I agree that the 1099-B will contain the needed information.  My question is how do I input that information from the imported 1099-Composite?  I'd prefer not to "type it myself" but instead import the information directly from the imported 1099-Composite.  I'm sorry I'm not articulating my question properly. 

[Critter-3]

When you get to the int, div & stock sale sections of the program the option to import the information will be available ... simply import the information and the program will do the work for you.

How do I import my 1099?

You can securely import your 1099-B, 1099-DIV, 1099-INT, 1099-OID, or 1099-R into TurboTax, provided your broker or financial institution participates in our TurboTax Partner program.

When you get to the place in TurboTax where we ask if you received that form, answer Yes and we'll give you the option to import.

You can also jump straight to the section for your specific 1099 form. Here's how:

1. With your return open, search for the form – For example, search for “1099-B”.
2. Click the Jump to link in the search results.
3. Now follow the screens and you’ll be able to import your form.

Tip: When selecting your financial institution or brokerage from the list, be sure to select the right one. For example, several participating partners' names start with First National Bank and if you select the "wrong" First National Bank, you won't be able to import.

Related Information:

• Which 1099 forms can be imported?
• Which 1099 forms are not available for import?
• When will I be able to import my 1099?

[artg]

Thank you Critter-3.

Based on your response it appears to me that I maybe making this task much harder then it needs to be.

Therefore, about the middle of February 2022 I'll import my 1099 from Schwab and let TT do the work.

Again, thanks.

[Critter-3]

Don't be in a rush ... brokers often put out corrected statements in March ... wait for the final statement.

[artg]

Good advice Critter-3.

That has happened to me over the years which, of course, ruins my day after I've inputted the original 1099.

Thank you.

[Kat]

@artg The info shared by @Critter-3 is fabulous.  I've imported 1099-Bs into TurboTax for years.  It's an amazing feature!  Of course, you'll  need TurboTax Premier at the least for the investment portion of the interview.

One thing I'd add to the info that you've already received:

Once your import is complete, check the totals (final numbers) to be sure that they agree with the paper copy of your 1099-B.  You are responsible for the accuracy of your return.  

As @Critter-3 advised, wait until later in the tax season to see if you get a corrected document.  If you do, you simply import and then delete the incorrect import.  So easy!

Best of luck!

[artg]

Thanks Kat.

I agree about Critter-3's advice.  More importantly, I still think I'm making this harder than it is.  Last year I imported the 1099-Composite but all I had was normal distributions; I had not sold anything in 2020.

In 2021 we sold several mutual mutual funds so now I'm concerned with the "mechanics" of how it'll work when I'm going through the TT interview process.

[Mike9241]

when you import - GENERALLY, all the necessary info is transferred from the broker into a 1099-B worksheet in Turbotax - description, data acquired, date sold, number of shares, sales price, cost basis, wash sale amount ( If applicable) so there is USUALLY nothing for you to enter.

exceptions cost basis for fractional shares when the broker reports $0. Then, at least in 2020, the cost basis is left blank which Turbotax deems an error and will prevent e-filing until a cost - even $0 is entered

There could be other situations where the info is incomplete or incorrect - tax basis for securities transferred from another  broker, tax basis for investments in master limited partnerships, or publicly traded partnerships

Turbotax does not guarantee the accuracy of the imported info just like it doesn't guarantee the accuracy of the data you enter manually.   it is your responsibility to review all imported data for accuracy 

[artg]

Thanks Mike 9241.

I'm sure hoping you're correct.  I'm already very confident with the Cost Basis displayed when I log into Schwab.  These are basic "vanilla" mutual funds so I don't think I'll run into any problems.

But if I do this fantastic TT Community will hear from me. 

[Kat]

@artg It "should" go off without a hitch.  Activity in your account(s) should import as smoothly as it did when you had no transactions.

There are some newer items, such as cryptocurrencies, that may require manual entries.  But plain vanilla things should be easy.

Again, as others have said, review the entries on your return before filing.