Turbotax generated Schedule D is incorrect

[amiyabasutt]

Hi, 

Turbotax entered the tax Reporting Statements from Brokers (All Forms 1099 and 1099-B) online but the resulting Schedule D is incorrect.

(1) Is it possible to correct/edit Schedule D to be consistent with Brokers' Statement?

(2) Turbotax-generated Form 8949 (consisting of many transactions) probably has errors causing this discrepancy. How do I edit the long Form 8949?

Thanks.

[Critter-3]

@amiyabasutt 

Are you using the online or downloaded version of the TT program ?

Did you import the 1099-B information from the broker or enter it manually ?

[amiyabasutt]

For clarity, I am using a CD with TT Premier on a desktop running Windows 10.

I imported the 1099-B Broker Statements online. My brokers were Fidelity and Interactive Brokers, the latter designated Short Term Transactions for which basis was not reported to the IRS as "Noncovered Securities" with no information on Wash Sale loss disallowed or Cost. However, in the accompanying "Worksheet for Form 8949" IBKR lists all Box B category transactions giving individual transactions and the total of Proceeds, Cost, Wash Sale Adjustment and Gain or Loss. 

I printed out Form 8949 Box B transactions only from Turbotax Print option, For a large number of transactions Cost and Adjustment Columns have no entry, leading to huge and incorrect Gains. These transactions as shown in Turbotax (combined) Form 8949 need editing and I can find the correct numbers the from IBKR Worksheet for Box B. I am assuming Box B transactions from Fidelity have been correctly copied by Turbotax. 

Can I correct these (incomplete) transactions manually using data from IBKR Worksheets although these are not reported to IRS?

Thanks.

[fanfare]

When imported basis is incorrect (disagrees with consolidated 1099-B), you have no choice but to make corrections manually. OR, delete the imported transactions and use the summary method. that way, transaction details would have to be mailed to the IRS..

Note: refer to Instructions for 8949,

in the case where the broker's consolidated 1099-B show an incorrect basis.

@amiyabasutt 

[amiyabasutt]

Thanks for the suggestions.

(1) What is the summary method? I have always used Turbotax generated Form 8949 based on Brokers' reports copied by TT online. and e-filed returns.

(2) If I choose the alternative to make manual corrections how do I access the file (or Form) where I make the corrections?  Will I be able to e-file after these manual corrections? There are various  Forms and Worksheets in Turbotax and I am not familiar with these documents.

[Critter-3 · Accepted solution]

(1) What is the summary method? I have always used Turbotax generated Form 8949 based on Brokers' reports copied by TT online. and e-filed returns.   See below.

(2) If I choose the alternative to make manual corrections how do I access the file (or Form) where I make the corrections?  Will I be able to e-file after these manual corrections? There are various  Forms and Worksheets in Turbotax and I am not familiar with these documents.   Switch to the FORMS mode where you can make direct line entries to enter the corrections. 

Summary option: 

Open or continue your return (if it's not already open) and search inside TurboTax for the phrase stock sales.

1. Select the Jump to link in the search results.
2. Answer Yes to both Did you sell stocks, mutual funds, bonds, or other investments? and Did or will you receive a 1099-B form or brokerage statement for these sales?
• If you land on Here are all your 1099-B sales, select Add sales from a different brokerage. Then answer Yes to Did or will you receive a 1099-B form or brokerage statement for these sales?
3. When asked how you want to enter your 1099-B, select I'll type it in myself.
4. Select or enter your brokerage on the next screen and continue.
5. On the following screen (Tell us about...), answer the questions until you reach the next screen. Select the second option, Let's enter a summary instead, and select Continue.
6. You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and category. When finished, select Continue.

When you are done, you'll eventually come to the Here's a summary of your broker sales screen where you can edit, delete, or enter more sales.

You will have to mail a copy of your 1099-B to the IRS.  TurboTax will produce a Form 8453. You print the Form 8453 and attach the brokerage statement(s) to it. 

IRS requires details to be listed on a Form 8949,
or on your other forms (e.g. consolidated 1099-B) which have the same information and in the same manner as Form 8949.
Either way, if you choose to summarize, you have to mail the transaction details to the IRS within three business days of IRS accepting your e-Filed tax return.(unless you have attached a PDF of the transactions details to your e-Filed return. TurboTax seems to be adding this feature now).
Only Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary.
If you don't have a 1099-B from coin base (crypto) your sales category is C or F.

There is no exception for these categories.

[amiyabasutt]

Many thanks for the detailed response.

It seems the main (perhaps the only) problem is that Turbotax did not look at the detailed worksheets for Form 8949 from IBKR as their consolidated Form 1099 stated that for Box B category (Noncovered Securities) the only item known is the Proceeds. So the Category B  transactions from IBKR listed by TT have nil cost and nil adjustment, but not those from Fidelity

I think it may be easier to enter these missing data on Forms for Box B category. If even after this correction the totals don't agree with the data on Schedule D, I have to search for other problems. Luckily, TT seems to have listed all transactions (too many, I now realize) from the Brokers, so I don't have to type them.

[fanfare]

you cannot edit Form 8949 directly.

Once you edit the 1099-B transactions,

both 8949 and Schedule D should come into agreement with the subtotals for   "cost basis" on the broker's statement,

@amiyabasutt