I have uploaded my two broker 1099 forms to Turbo Tax and during the review I had to adjust some stock transactions. I have been told when uploading brokerage 1099 forms to Turbo Tax it takes care of the 8949 form as well and it files it with the IRS when the time comes. Is that correct?
Yes, TurboTax will automatically generate Form 8949 when you report the sale or disposition of your stock transactions from Form 1099-B. It becomes part of your tax return so when you e-file or mail your tax return, the form will be sent to the IRS.
Additional information: Do I need to fill out or mail in Form 8949?
BUT...you do have to check the form before filing, to see if everything has been entered.. We've seen a few reports that the 1099-B/8949 form entries are sometimes cut off short for some reason.
Always check those entries against what is actually on your Paper/PDF form that the Brokerage issued to you.
OK, cool. thanks. I have a bunch but I will check them. I found that if I Dollar Cost Averaged in I have to manually enter "Various" on Turbo tax for all those ones for the "Date Acquired" of the security I sold.
it is your responsibility to review the import for correctness. sometimes the broker does not have all the info or is otherwise unable to supply the correct amounts. the most common situations are when securities are transferred from another broker. the new broker may use the market value on the date of the transfer rather than your actual cost basis. another would be wash sales when you have multiple accounts taxable or nontaxable. for example, selling a security at a loss in a taxable account and within the wash sale period acquiring substantial identical securities in a nontaxable account.
these are rare but do happen.
In the event I have wash sales from selling at a loss in one brokerage sale and then repurchasing it in another within 30 days, how and where exactly in Turbo tax would I enter that?
After you enter your investment sale in TurboTax, you will see a sceen that says Any of these less common items on your (name of company) 1099-B? and one of the options will be to enter your wash sale loss amount:
Here is how to enter your investment sales in TurboTax: