If I received a consolidated 1099, do i still need to fill out form 8949?

[stanner90210]

I received a consolidated 1099, but read that I might need to fill out additional forms like form 8949.

Is this true? If so, how do I do it?

[SweetieJean]

Form 8949 is used to reconcile amounts that were reported to you and the IRS on Form 1099-B or 1099-S (or substitute statement) with the amounts you report on your return.

[TomYoung · Accepted solution]

Having a "consolidated" 1099 or not isn't really relevant here.  The focus of Form 8949 is reporting security sales and that's the subject of Form 1099-B.   Whether it's a "stand alone" 1099-B or just some pages included in a consolidated 1099 you still might have the option of not filling out a security-by-security listing of trades but, instead, simply reporting "summary" numbers - proceeds, cost basis, gain/loss - and mailing in the 1099-B to the IRS with the detail.

Take a good look at Schedule D

https://www.irs.gov/pub/irs-pdf/f1040sd.pdf

particularly line 1a and 8a.  The instructions for these two lines read exactly the same, except 1a deals with short term holdings and 8a deals with long term holdings:

"Totals for all (short-term/long term) transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line (1b/8b)."

The 1099-B portion of your consolidated 1099 will be organized into sections which correspond to the "Box A", Box B", "Box C", "Box D", "Box E" and "Box F" sections listed on Schedule D.  If you look at Form 8949 you can see that it has that same nomenclature, and actual boxes to check so that the IRS knows what "sales category" the trades being reported item-by-item fall into.  (So, if you do list out your trades and have lots of trades in lots of sales categories you can end up sending in many, many copies of Form 8949 with your income tax return.)

So all the trades listed on your Form 1099-B that are Box A or Box D trades, assuming you are not making any adjustments to those trades, can be entered in a summary fashion and you don't need to list out the detail or even mail in your 1099-B for those trades.     

To tell TurboTax that's what you're doing then after telling TurboTax you have a 1099-B and identifying the broker you'll come to a page titled "Tell us about your [Broker Name] 1099-B" with options for entering sales one at a time or entering them in summary fashion.  If you select "summary fashion" then you simply enter total proceeds and total cost basis per the 1099-B and identify the sales as Box A or Box D.  That's all there is to it.

Tom Young

[fanfare]

be careful! if you enter in summary fashion for categories other than A or D, you will be making the mail in election, which you may not want. It might be easier to type each one in and avoid mailing.

[Anonymous]

consolidated 1099's as they are called report dividends, interest, security sales, and all other reportable  items and in some cases supplemental info not reported to the IRS .  the term is used even when the only item reportable on the form is dividends.   so if you had no security sales 8949 is not required. 

[hlabate]

So since I have Box E figures with non reported 'ordinary" and 'basis' to the IRS am I required to list these and are the broker figures not considered accurate by the IRS.  Am I still obligated to pay tax if no accuracy is considered by the IRS to be available from the non reported values on my 1099-B?

If I have to report gains from box E can i use the summary provided and where do I enter this in Schedule D

or do I have to list the many sales I have with no affirmative data each on form 8949?

BTW what does ordinary mean?-I think mine are all zero.

[GeorgeM777]

@hlabate    You may not have to separately list all of your transactions on Form 8949.  Let's take a look at the exception that might apply in your case.  

According to the IRS, Form 8949 isn't required for certain transactions. You may be able to aggregate those transactions and report them directly on either line 1a (for short-term transactions) or line 8a (for long-term transactions) of Schedule D. This option applies only to transactions (other than sales of collectibles) for which:

• You received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and doesn't show any adjustments in box 1f or 1g;

• The Ordinary box in box 2 isn’t checked;

• You don't need to make any adjustments to the basis or type of gain (or loss) reported on Form 1099-B (or substitute statement), or to your gain (or loss); and

• You aren’t electing to defer income due to an investment in a QOF (Qualified Opportunity Fund) and aren’t terminating deferral from an investment in a QOF.

Based on your question, it appears you did receive a 1099-B, and therefore, the first bullet point above has been met.  However, what is also required is that your basis (cost) has already been reported to the IRS.  Assuming your basis was reported to the IRS, as long you don't have to make any adjustments to your basis, then you may not need to report your transactions separately on Form 8949.  The last bullet point deals with an investment in a Qualified Opportunity Fund, and if you made no investment in a QOF, and assuming the other bullet points above are satisfied, then you may not need to file Form 8949. 

You also mentioned Box E.  According to the IRS, you will need to report in Part II of Form 8949 with box E checked all long-term transactions reported to you on Form 1099-B (or substitute statement) without an amount shown for cost or other basis or showing that cost or other basis wasn't reported to the IRS.  The key point to remember with regard to Box E is that your basis is not shown on your 1099-B or your basis was not reported to the IRS.  In other words, if your cost is not shown on your 1099-B, or your basis was not reported to the IRS, then for those transactions you will need to include them on Form 8949.  

You asked about the meaning of "ordinary."  In the tax context, ordinary refers to income that is taxed according to the regular U.S. tax brackets and includes many types of income such as the short-term or long-term capital gains on your 1099-B, including any of qualified dividends.

To help you better understand Form 8949, below is a link to the IRS instructions for Form 8949 which you might find helpful. 

Instructions for Form 8949