You'll need to sign in or create an account to connect with an expert.
There has been a change by the IRS starting with the 2020 tax returns that will reject any return filed with a negative number reported in the proceeds or cost basis fields for Schedule D. TurboTax is flagging these situations ahead of time before the return is filed in order to prevent the IRS rejection. Some brokers are still using the old convention for reporting negative values and have not updated their reports to match the IRS.
The error message reported by TurboTax is telling you that the number entered cannot be negative.
Gains from expired options are reported by entering the gain amount in the proceeds column and no amount in the cost basis column. The end result here would be positive.
Losses from expired options are reported by entering the loss amount in the cost basis column and no amount in the proceeds column. The end result here would be negative.
No negative numbers should be entered in either the cost basis or proceeds fields.
If negative numbers have been imported through your brokerage statement, you will need to edit the entries to make the correction.
What do you mean "You will have to edit the entries to make the correction" Does this mean change the negative numbers to zero? The the capital gains go up?
No, you should not enter a zero. As you indicated this will create a positive overall income adjustment which is not what you want.
There are a couple of options (no pun intended), that you might try that should eliminate this experience.
These particular steps may provide the ability to post a negative value to form 1099-B, Box 1d.
Another option is to put $1 in the proceeds box and then add that $1 to the negative gross proceeds as your cost basis (positive figure). This will provide the accurate results of income and tax. The most important thing is the correct end results on the tax return.
I have not found this to be helpful advice or contain enough detail or specific examples to help me understand how to make these changes so that the accurate information for losses are input, not only for this year but how it can affect my taxes next year.
It is also not helpful if you have dozens or hundreds of trades.
If TurboTax can't adjust this information in their software, then it is time to move on from TurboTax and see if other tax programs can solve this issue.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
TerriM
New Member
jetlife2
Level 2
cdenorch
Level 2
OldCarGuy
Level 5
johnorland
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.