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 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
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Thanks. This answer was very helpful. I have been trying to get rid of the error message for several days and talked to two support personnel at TurboTax who could not understand and resolve my issue.
This doesn’t work for the downloaded/cd product. I go to the form view and can’t edit. I am trying to blank out the zero that was set when imported from Betterment. Please fix your product, I can’t even edit it.
You cannot edit the wash number during the Turbo Tax review (when it shows you the 0. that it wants you to change to a non-value. Record the transaction history for that wash value and then you need to go back to your Income section and find this specific transaction to delete the wash value.
I learned this late last night and it was a pain. I had thousands of transactions I needed to look through to find six of these wash values lower than $0.49. The best way I found to locate the problematic transactions was to search for the number of shares and the sale price knowing that the transaction list goes from oldest at top to newest at bottom. It took me an hour or so to locate all problematic transactions and delete the wash values, but it did work. Ran the TurboTax review for Federal and 0 issues found, submitted. Good luck!
Your tip worked! Can't make the change in the review process, which is where it should be allowed, as it pinpoints the location better. This is a glaring bug. I don't remember it in previous versions, but I used the pricier Premiere or Business editions until this year. It may be specific to Deluxe, I don't know.
I think you can look at the summary info at the top of each of your financial institutions to see where the Wash Sale info is.... but yes, you would have to drill down to each fund's worksheet item and either delete it, or zero it, if it's less than less than .50c. the problem is, you can't edit these particular fields during the review process, while you can edit virtually anything else the review catches. You have to get out of the review process, back to your wages / earnings section, and open the form/worksheet there, and drill down and find it.
You’ll need to delete only the Wash value for that transaction, nothing else. In the TurboTax Federal review it probably shows a wash value of “ 0. “ but in reality there’s a value of $0.49 or less entered in that transaction. The IRS allows you to round down so below $0.49 is the same as 0/nothing, and TurboTax wants nothing in that cell. There is a decimal error issue in TurboTax which does not show the full Wash value entered when in review.
You’ll need to go back to your Income section and scroll down to the investments area and you’ll need to find the specific transaction that has a wash value of $0.49 or less and delete it. Then save this update and perform the Federal Review again to confirm there are no issues remaining.