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adowns284
New Member

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

 
17 Replies
arnoldk
Level 1

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

Do not report your 3 cent loss at all.

AnnetteB6
Employee Tax Expert

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

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 would 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.  

 

 

@adowns284

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adowns284
New Member

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

AnnetteB6...

Your response solved my problem.  Thank you for your help.  My tax form was completed, sent off, and accepted by the IRS. 

jleasure
Returning Member

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

Manually entering did not work for me, UNLESS I enter the wash sale as blank.

 

I have three wash sales giving me the error (.11, .11, .18). If I manually enter these and leave the box blank, will it cause me any issues? 

JohnB5677
Employee Tax Expert

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

No, The IRS allows the rounding down of Wash sales.  Entering a null will resolve the data problem and will not be an issue with the IRS.

 

@jleasure

 

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MikeF2
Level 2

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

@JohnB5677  "The IRS allows the rounding down of Wash sales." You almost answered my question. But more specifically please answer if the IRS allows a numeral "0" in the Wash Sale adjustment column of Schedule 8949 (column g of 8949).  If they do, i think we're all good, or least i am. I'll just file my tax return with the 0 there in column g. I am not concerned with the TT software making an issue with the 0 only if the IRS has a problem with it. Thanks in advance! 

 

Update: I now see what's going on here. The software actually is preventing efiling due to the "error". Haven't been able to get around it yet. Worst case, i might have to mail it in.

Mble
New Member

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

How do you determine which trades are wash sales? They are not labled as such and there are hundreds of transactions imported from my broker.

 

Would appreciate your insight. This error is preventing me from filing my return.

MikeF2
Level 2

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

A wash sale is notated with the adjustment code "W". And if you downloaded with TurboTax, TT will download the transactions into either of Schedule D or 8949. If there is no adjustment code, their aggregated totals are input into Sched D. If they do have a code, they're put into 8949 and their totals are input into Sched D on a separate line. 

jmfischler
New Member

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

While this might solve the solve problem, a much easier solution for the customer would be to simply allow "0" to be entered in that field! Then we wouldn't have to comb through hundreds of trades just to file our taxes.

attdobi
New Member

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

I feel your pain. Just wasted 3 hours of my life... garbage software

MikeF2
Level 2

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

I fixed my return by changing the "0" to a "1". It was a suggestion made by another poster and i think it's a good one or good enough for me. A transaction notated with "W" needs a positive amount listed in the disallowed amount column. So, 0 is not acceptable, so it's $1.

K96b
New Member

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

They are labeled with a "w"next to it. In the columns of wash sale disallowed. The tax software ware will pick up the ones you need to go and change. Otherwise you can't electronically file

wrodrigues2008
New Member

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

TT team,

Why not change the coding behind the platform for whenever there's a value below $1 it defaults to "null"?

I just spent 4 hours between figuring this out and actually making the changes in my worksheet.

 

Thanks,

-W

donncee
Returning Member

Wash sale loss was $0.03. TurboTax rounds this to zero. TurboTax will not accept zero. TurboTax will not finish my return because of this. How do I proceed?

how do I make the change in the worksheet? TIA

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