TurboTax DELUXE and the Selling of Mutual Funds

[Mes01]

I have used TT DELUXE for several years and have had no problems using the application and electronically filing my Federal return.  It was also a simple matter to print out the required pages for the mailing of my state (PA) tax return. 

However, in 2023, I sold the two remaining mutual funds in my brokerage account.  They were both US based funds and each had long term and short term losses.

I hope that someone in the forum can answer the following questions:

1. Will TT DELUXE handle the sale of the funds without a problem?  If not, what TT DELUXE forms do I need to fill out in order to support the sale of the funds?
2. Will the results of the extra forms be automatically transferred to the IRS 1040 form or will I need to manually update the 1040?
3. Will any of the above create an issue that prevents me from electronically filing the Federal return?

Thanks in advance for your support!

[DoninGA · Accepted solution]

If you are going to use TurboTax for the 2022 tax return you will need to use the TurboTax desktop editions.

To complete and file a 2022 tax return using TurboTax you would need to purchase, download and install on a personal computer one of the 2022 desktop editions from this website - https://turbotax.intuit.com/personal-taxes/past-years-products/

A 2022 tax return can only be printed and mailed, it cannot be e-filed using TurboTax.

The TurboTax Deluxe desktop edition can be used to report the investments sales and enter the sale information on the correct forms for you, Schedule D and Form 8949.

To enter an investment sale -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Under Investment Income
On Stocks, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen. Click on Jump to investment sales

[Mes01]

Hi DoninGA

I made a dumb mistake, the funds were sold in 2023.  Sorry for the confusion.

[DoninGA]

@Mes01 No problem.  The answer provided is also correct for tax year 2023 when using the Deluxe desktop edition and how to get to the Investment Sales section of the program.

[Mes01]

@DoninGA, thanks for your reply and the clear instructions.  So, just to confirm, if TT Deluxe edition auto populates Schedule D and Form 8949 and 1040 and no other issues, I should not have any problem electronically filing my tax return with the IRS.

No need to buy the Premier edition?

[DoninGA]

@Mes01 You are correct.  There should not be any type of issues to complete the 2023 tax return correctly having the mutual funds sales reported.

[Mes01]

@DoninGA, Excellent, thanks again!