Why does Turbotax alway generate Form 8949 even if 1099-B can be directly used on Schedule D line 1a or 8a?

[ilovedogya]

On my 1099-B, the cost basis is reported to IRS and no adjustment is needed. According to Schedule D instructions, you can gross up proceeds and cost in Schedule D 1a. Form 8849 is not needed. 

However, after I choose "cost basis is reported to IRS" and type in 1099-B gross numbers, Turbotax generates Form 8849 with "see attached statement" and "M" in column f. And as the result, gross numbers go to schedule D, line 2a. Does that mean I have to mail in a summary of sale statement to IRS. That is definitely not what I have expected. I think Turbotax should make a change here. 

Any suggestions? 

[FangxiaL]

It depends.

If you're e-filing, you only need to mail copies of your Form 8949 along with Form 8453 if:

• You entered a summary for one or more sales categories instead of each individual sale; AND
• The sales category for one or more summaries is something other than Box A (short-term covered) or Box D (long-term covered); or
• The Box A and/or Box D summary includes adjustments (typically listed in boxes 1f or 1g on your broker statement).

Otherwise, if you entered each individual sale, or you entered summaries for Boxes A and/or D with no adjustments, do NOT mail in your Form 8949.

Here is a help article Do I need to fill out or mail in Form 8949?

[ilovedogya]

Thanks for your reply. 

I guess the first thing I don't like is that why TT would produce Form 8949 if the cost basis is reported to IRS for all transactions and no adjustment is needed. In that case, Form 8949 clearly states:

To report certain transactions you don't have to report on Form 8949, such as transactions reported to you on a Form 1099-B (or substitute statement) showing basis was reported to the IRS and for which you have no adjustments, as explained under Exception 1, directly on schedule D. 

If you choose to report these transactions directly on Schedule D, you don't need to include them on Form 8949 and don't need to attach a statement. 

The second thing very confusing is even though TT produced Form 8949 has Box A checked, there is a box for sending statement also checked. 

I think TT should fix this. I checked FreeTaxUSA, it handles this scenario correctly, no From 8949.  

[GeorgeM777]

You are correct in that if no adjustments are necessary, the Ordinary box in box 2 isn’t checked, and you are not electing to defer income due to an investment in a Qualified Opportunity Fund, and are not terminating deferral from an investment in a QOF, then a Form 8949 is not necessary.  Generally, Form 8949 allows you and the IRS to reconcile amounts that were reported to you and the IRS on Forms 1099-B or 1099-S (or substitute statements) with the amounts you report on your return.  While a Form 8949 may not be needed under the circumstances, there is no prohibition against preparing one in connection with a return that has the option to only report such transactions on Schedule D.  

[fanfare]

@ilovedogya 

You're not entering your data correctly.

If you use the summary option you will get code "M" which means you are using the mail-in option.

Instead, have TurboTax import your transactions from financial institution.

It will then note that there are no adjustments and use Schedule D line 1a.

This is odd behavior.

Reply back it it works for you.

If it doesn't I can offer a different workaround.

[ilovedogya]

@fanfare I imported 1099-B from the broker. Form 8949 is still used even though there are no adjustments. I guess TT just won't use Schedule D line 1-a automatically. 

[fanfare]

@ilovedogya 

For a long time, TurboTax did not support Schedule D line 1a/8a.

Then a few years ago, that was added.

As I recall, it worked.

What you are saying is that this is broken for 2021.

Considering this and all the other issues with 1099-Bs reported on this forum,

I suggest you find other tax prep software that works correctly.

P.S.

Make sure you enter just the subtotals don't click the other buttons that open the window to enter the amount of adjustments. If you did, delete everything and try again.