1099-B dealing with entering multiple line items for taxes

[jeromedawg]

Hey guys,

So I tried out Wisebanyan's TLH last year and just got the 1099-B and 8949 forms. There are tons of line items for the 1099-B... am I just going to have to rough it out and enter each line item? Or is there an easier way to do this? I'm using TaxAct btw, if that makes any difference. The other thing is, I've already hit the $3000 loss claim limit but I'm assuming I still need to file *everything* regardless.

[jeromedawg]

It seems like the 8949 is the "multi-line" form I can enter the "total" into via Taxact and then just provide as an additional file/attachment when I actually go to e-file? Do I still need to file the 1099-B information though or does filing and including the 8949 cover that?

[RWD]

I had a similar issue with Prosper. I also use TaxAct and looking at my 2014 return seems it used the 8949 form and then put the total in the appropriate location on Schedule D.

[Psychstache]

I used taxact and entered each line item. It was a bit of a beating, but I didn't look too hard for alternatives.

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[jeromedawg]

I used taxact and entered each line item. It was a bit of a beating, but I didn't look too hard for alternatives.

Sent from my SM-G900V using Tapatalk

I noticed Taxact has an area to enter the 8949 details. Would doing this and then providing the 8949 form as an attachment essentially accomplish the same thing as entering each 1099-B line item?

I've already entered a bunch of 1099-B line items for a majority of my other accounts, but those weren't so difficult since in most cases they were either single line items or maybe a few at most. For Wisebanyan though, there's probably over a dozen of line items.

[SuperSecretName]

I use taxact also, just tough through it.

You probably spent more time looking around how to get around than it would have taken to just do it.

[jeromedawg]

I use taxact also, just tough through it.

You probably spent more time looking around how to get around than it would have taken to just do it.

Doesn't hurt to check and see IMHO. It's not like taxes are due tomorrow and I'm doing this all last-minute...

What's the difference between the 8949 form entry and the 1099-B line item entries then? Do you have to do both?

[johnny847]

I use taxact also, just tough through it.

You probably spent more time looking around how to get around than it would have taken to just do it.

Doesn't hurt to check and see IMHO. It's not like taxes are due tomorrow and I'm doing this all last-minute...

What's the difference between the 8949 form entry and the 1099-B line item entries then? Do you have to do both?

You don't have to use 8949 under certain circumstances. Here's one exception:

Exception 1.

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 1g, and

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

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. For more information, see the Schedule D instructions.

If you qualify to use Exception 1 and also qualify to use Exception 2, you can use both. Report the transactions that qualify for Exception 1 directly on either line 1a or 8a of Schedule D, whichever applies. Report the rest of your transactions as explained in Exception 2.

Taken from the IRS.

Considering Wisbanyan's roboadvising service is designed to avoid wash sales, I doubt you actually have box 1g checked. I also doubt you have to report any adjustments to cost basis. unless you made trades in other investment accounts (retirement or otherwise) not controlled by Wisebanyan*.

* I believe that is the only scenario in which you have to report adjustments to cost basis, but there may be other reasons you'd need to adjust your basis that I am not aware of.

[Stashaholic]

I used TaxAct and entered every line item. It took me over an hour for 40 items and I think most of that time was spent on thinking about how annoying it was to enter everything than it did doing actual work. After about 5 or so, you get used to it and the process really doesn't take much time.

[johnny847]

I used TaxAct and entered every line item. It took me over an hour for 40 items and I think most of that time was spent on thinking about how annoying it was to enter everything than it did doing actual work. After about 5 or so, you get used to it and the process really doesn't take much time.

The instructions for form 8949 say that if you have a bunch of lots bought on different dates, but all sold on the same date, and all are the same type of gain (short or long), then you can group them all together into one entry and say date bought = Various.

Was that the case for you?

[Stashaholic]

I used TaxAct and entered every line item. It took me over an hour for 40 items and I think most of that time was spent on thinking about how annoying it was to enter everything than it did doing actual work. After about 5 or so, you get used to it and the process really doesn't take much time.

The instructions for form 8949 say that if you have a bunch of lots bought on different dates, but all sold on the same date, and all are the same type of gain (short or long), then you can group them all together into one entry and say date bought = Various.

Was that the case for you?

Yes, most of the stocks were bought at various dates but sold on the same date so that definitely helped speed things up. I just entered "Various" on date purchased. If it had different sold dates, there were only 2-3 dates per item so it wasn't too bad.

[jeromedawg]

Resurrecting this thread... so with Wisebanyan, they changed their brokerage in the middle of the year last year which complicates things more. But at the end of the day, I have about $36-37 of losses reported via the 1099-B and 8949 forms. Am I still required to report this or will I get in hot water if I don't?

I noticed that I can enter a summarized total of the 8949 and then "attach the 8949 pdf" later when I go to e-file. Also, I was reading about the 1099-B entries in Taxact, and they seem to indicate that every 1099-B entry will be automatically added into an auto-generated 8949 derived from the 1099-B entries. So it really seems like using the 8949 form attachment would expedite things. I noticed though that if I attach form 8949 classifying short term transactions where cost basis was reported (A), I am unable to add another 8949 under the same category (so it seems this would only work if you have a ton of transactions of the same type and under the same brokerage). In the case of Wisebanyan changing brokerages, it sounds like I'd still have to manually enter the 1099-B entries (but perhaps choosing the brokerage that has fewer transactions recorded).