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Not applicable
posted Jan 23, 2021 5:02:05 AM

Smart Check Errors after downloading 1099-B stock sales

I downloaded my consolidated 1099 from TD Ameritrade with TT Deluxe Windows.  Smart Check found errors with each stock sale. Here is what I believe is happening. The 1099-B Worksheet correctly shows each stock sale with dollars and cents. Form 8949 lists each sale rounded to the whole dollar. TurboTax does not like that and creates a Form for each of these sales called a Capital Gains Adjustment Worksheet.  The mismatch can be from either Sales Price or Cost Basis. I do have a couple sales that end in .00 and those are not flagged. I can also fix this by adjusting each stock sale by rounding it to the nearest dollar and entering it manually. But I think TT should be doing that, not me.  It has never happened like this before.

 

2 16 2635
16 Replies
Level 15
Jan 23, 2021 5:17:45 AM

It's a new problem introduced this year.

---

As an active investor, be aware that your category Box A sales without adjustments do not require Form 8949, so there is no reason to import or key in those transactions.
Instead use the "enter a summary" option to put your numbers on Schedule D Line 1a.
--
If you have wash sales, it gets more complicated since those adjusted transactions have to be itemized on Form 8949 and the summary totals adjusted accordingly.

Enter the wash sales on Form 8949, then use the subtotal results on the bottom of that form to know how much to subtract. Be sure to NOT check the adjustments box in the summary window.

Not applicable
Jan 23, 2021 5:28:29 AM

Thanks. I went back through each entry and the adjustment box is not checked. I'm not really entering anything, just downloading the document. I'm guessing that TT just needs to fix this. 

Level 3
Jan 23, 2021 5:31:00 AM

Thank you, Mollinmark, for your clear elaboration. You're right, it is not the customer's fault and TurboTax should correct the mismatch for us. And they must do it soon, since there is a deadline for tax form submission to the IRS. They already charged me for the preparation cost, even while the error had not been corrected.

Level 1
Jan 25, 2021 8:50:12 AM

I went back and removed the cents from the Federal tab, however, now it is saying there should not be anything listed in the "adjustment" field.  I don't have anything listed and the box is not checked.  This is extremely frustrating.

Level 3
Jan 25, 2021 1:19:47 PM

Hello, Denson0216

I empathize with you on the frustration ! But aren't we  supposed to wait for the TurboTax experts to fix the rounding error problem for us?  I am stuck in the wrapping up stage of the tax return filing too.  So far there has been no communication from the TurboTax management as to when they expect the software error(s) to be fixed so that we the customer can finish up our tax filing. 

Level 1
Jan 25, 2021 1:48:01 PM

Perhaps - I didn't see a statement from TurboTax that said it was a known issue or that they were working on it.  I may have overlooked it.  I suppose I will continue to wait 🙂

Not applicable
Jan 26, 2021 4:39:04 AM

Yes, I really posted this hoping that TT would see it. I have no idea if they even know about it.  There have been 3 releases since I noticed it. TT doesn't have Release Notes anymore so nobody knows what changes have been made. So every time there's a release, I delete my TDA info and re-download it to see if it was fixed. But I do know how to manually fix it if I have to so not too worried.

Level 3
Jan 26, 2021 4:51:21 AM

Dear Mollinmark
You deserve a medal of honesty and truthfulness from TurboTax.
Thank you for being so clear-cut in the above reply.
>> Right. TurboTax doesn't seem to care.
Now, importantly, can you please teach me and other victims how to fix the online TT version? The filing tax option will be my last resort.

Not applicable
Jan 26, 2021 5:06:16 AM

Hi Tepsastri,

 

Thank you 🙂

 

Unfortunately, I am not familiar with the online version. I use the desktop. There are 2 ways that it can be fixed.

 

1 - In Step by Step - Stocks, Mutual Funds, Bonds - Go into each stock sale and for Box 1d and 1e, round those numbers up or down so they end in .00

 

2 - In Forms - Form 1099-B Worksheet - Round each of the numbers that is in Red up or down so it ends in .00

 

I'm not sure if the online version would be the same or not.

Level 3
Jan 27, 2021 6:13:23 AM

At the suggestion of someone on here I changed my 1099B totals to whole numbers and the errors went away.  Thank you for the suggestion.  Hopefully Turbo Tax will fix this soon!

Level 3
Jan 27, 2021 6:54:19 AM

Did you do it manually with the desktop version of TurboTax? Do you know how to do the same for the online version? If you do, please provide details.

Thanks.

Not applicable
Jan 28, 2021 3:59:30 AM

Got an update today and it seems to have stopped flagging these as errors.  It does still have a Capital g/l adj entry for each stock sold under the Form 1099-B Wks in the Forms section, but not too worried about that.  I don't believe these were here in previous years though.

New Member
Feb 7, 2021 2:23:37 PM

Thanks, that rounding process worked for me using the desktop version of Turbo Tax.  

TT fix this!

Level 1
Feb 24, 2021 2:40:11 PM

I am having similar problem and the most current program has been uploaded.  My 1099-B has some wash sales with the loss less than 50 cents so the program rounds down to 0 and the program doesn't like it.  Has anyone else seen this issue?

  I wanted to group them, but they are sold on different dates so they want them entered individually.

Expert Alumni
Feb 28, 2021 11:31:29 AM

If you are using one of the CD/downloaded versions of TurboTax, please be sure you have updated it to the latest version.  A recent update has corrected an issue similar to what you described.  (The update was released after the time you posted your question.)

 

Take a look at the following TurboTax article for instructions:  How do I update my TurboTax CD/downloaded software program?

 

If you are using the latest version and the error persists, see the following information:

 

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 may 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.  

 

@mjpugh50

New Member
Mar 14, 2021 3:19:59 PM

With all the competition I can't believe this is still happening.  Will go in and correct rounding on all the items (online version) and let everyone know if that works.