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:
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.
The solution doesn't work. Editing is not allowed in the Wash sales fields.
I'm having the same issue with the CD version, it will not allow me to manually edit the wash sale fields to blank them.
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!
Please see my response to DavidT512 regarding where to go to change the wash values. Best of luck!
Thanks Freddo, will give that a try! It's a shame that TT can't fix this obvious software bug.
I agree completely! If it can point out where the error is, it should take me there to edit it.
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.
So you’re saying delete the worksheet item? Sorry not sure where do delete
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.
I did this and my return was rejected by both the state and Fed.
not sure how to see the code but it does say
"There is a potential issue with the calculation of RSU Sale of Employee Stock"
I was able to pull up my return in TT when I got off work and saw that their was a software issues that was causing issues. i am refiling now to see if that works
Hello,
I appreciate the helpful answer but in reality, this isn't a good work around. Either spend hours combing through transactions, or submit paper documentation? That is why I am e-filing, so that I do not need to go anywhere or request any further documentation be mailed to me and then mail it out myself. This should be understood, especially in the middle of a pandemic.
I sincerely hope there is a fix in the works for this to be rolled out to simply show the transactions with rounded amounts from the Securities Sales page or allow rounding to 0 on one line of code for goodness sakes. It seems like a small change that could save someone hours and needless risk to themselves. If there is no fix forthcoming, I can say with absolute surety that our family will no longer user Turbo Tax products in the future.
Thank you,
G
I agree. My last year as well, this is such an obvious bug that they should fix. Very disappointed long time user.
I followed these steps, changing a wash sale value from 0.04 to 0.00, and it causes my state refund to drop by $1,100. So this is clearly not the correct solution.
I agree. I have had the same exact problem and share the frustrations of everyone else who has already commented on this. Can TurboTax please fix this bug and let us know about it? Thank you!
And now, for the first time I can think of in years, immediately after I e-filed, I was directed by the TT software to mail to the IRS a form 8453, along with an 8949 (as per the box checked on the 8453). This just doesn't make sense to me... this is why I have a managed portfolio, and e-file software, so I don't have to worry about this sort of detailed wash sale crap, whatever that means, and mailing anything in! Every time I see the term "wash sale" , I think of money laundering!