Filing your taxes can feel like a daunting task, especially when you have investment income to report. But don't worry! If you've sold stocks, bonds, mutual funds, or other securities, you've likely received a Form 1099-B from your broker. This form is crucial for reporting capital gains and losses, and thankfully, TurboTax makes the process of importing this data relatively straightforward.
Are you ready to simplify your tax season and tackle that 1099-B with confidence? Let's dive into a step-by-step guide to importing your 1099-B into TurboTax!
Understanding the Form 1099-B: A Quick Overview
Before we jump into the import process, let's briefly understand what a Form 1099-B is. This form, officially titled "Proceeds From Broker and Barter Exchange Transactions," is issued by your brokerage firm to report the proceeds from sales of securities. It includes vital information such as:
Description of the asset sold: (e.g., "100 shares of XYZ Co")
Date acquired and date sold: These determine if your gain/loss is short-term (held for one year or less) or long-term (held for more than one year), which impacts your tax rate.
Proceeds: The amount you received from the sale.
Cost basis: The original cost of the asset, including commissions and fees.
Wash sale adjustments: If applicable, this indicates a disallowed loss from selling and then repurchasing substantially identical securities within a 30-day window.
Federal income tax withheld: If any tax was withheld by your broker.
This information is then used by TurboTax to populate Schedule D (Capital Gains and Losses) and Form 8949 (Sales and Other Dispositions of Capital Assets).
The Import Process: A Step-by-Step Guide
TurboTax offers a convenient way to import your 1099-B directly from many financial institutions, saving you time and reducing the risk of errors.
Step 1: Gather Your Documents and Prepare Your TurboTax Account
Before you begin, ensure you have everything you need. This initial preparation is key to a smooth import.
Your 1099-B Form: Have the physical or digital copy of your 1099-B (or consolidated 1099 statement) from your brokerage firm readily available. Even if you plan to import, it's a good idea to have it for cross-referencing.
Your Brokerage Account Login Credentials: You'll need your username and password for your online brokerage account.
TurboTax Account Access: Make sure you can log in to your TurboTax account (Online version) or have your desktop software updated and ready (Desktop version).
Internet Connection: A stable internet connection is essential for the import process.
Step 2: Navigate to the Investment Income Section in TurboTax
Once you're logged into TurboTax, you'll need to find the right section to import your investment data. The navigation might slightly vary depending on whether you're using TurboTax Online or the Desktop version.
For TurboTax Online/Mobile:
From your main tax return summary, look for a section related to "Federal" or "Wages & Income."
Within "Wages & Income," locate the category for "Investments and Savings."
You'll typically see an option like "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)" or similar. Click "Start" or "Revisit" next to it.
For TurboTax Desktop:
Go to the "Federal" tab.
Select "Wages & Income" from the left-hand menu.
Scroll down to the "Investment Income" section.
Look for "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)" and click "Start" or "Update."
Step 3: Choose Your Import Method
Once you're in the 1099-B section, TurboTax will ask how you want to enter your information. This is where the magic of the import happens!
Select "Import my 1099-B" or "Let's import your tax info."
Find Your Financial Institution: TurboTax will present a list of partnered financial institutions. Carefully select your brokerage from this list. Be mindful of similar-sounding names (e.g., "J.P. Morgan Chase Bank" vs. "J.P. Morgan Securities"). If you select the wrong one, the import will fail.
Enter Your Login Credentials: You'll be prompted to enter the username and password for your brokerage account. This is a secure connection that allows TurboTax to pull your data directly.
Tip: Some institutions might also require an account number or a document ID. Refer to your 1099-B form for any specific IDs.
Initiate the Import: Click "Get my forms" or "Import Now." TurboTax will then attempt to connect to your brokerage and retrieve your 1099-B data.
Step 4: Review Your Imported Data
After the import is complete, TurboTax will display a summary of the imported transactions. This is a crucial step that many users overlook!
Compare with your physical 1099-B: Take the time to meticulously compare the imported data with the information on your actual 1099-B statement. Look for discrepancies in:
Sales proceeds
Cost basis
Acquisition and sale dates
Wash sale adjustments
Type of gain/loss (short-term vs. long-term)
Address Any Discrepancies: If you notice any differences, you may need to:
Edit the imported data directly in TurboTax. TurboTax usually allows you to make corrections.
Delete the import and try again. Sometimes, a re-import can resolve minor glitches.
Contact your brokerage: If there are significant discrepancies, it's possible your brokerage had an error in their reporting.
Manually enter the data: If the import consistently fails or is inaccurate, you always have the option to enter the information manually.
Step 5: Continue Through the Investment Section
Once you've reviewed and confirmed the accuracy of your imported 1099-B data, continue through the TurboTax interview questions.
Add More Investments: If you have 1099-Bs from multiple brokerage accounts, you'll need to repeat the import process for each one. TurboTax will typically ask if you have more investments to enter.
Answer Follow-Up Questions: TurboTax will ask various questions related to your investment sales, such as whether you had any non-covered securities, wash sales, or other adjustments. Answer these questions accurately as they impact your final tax calculation.
Review Schedules D and Form 8949: As you progress, TurboTax will automatically populate Schedule D and Form 8949 based on your imported data. You can always preview these forms to ensure everything looks correct before filing.
Troubleshooting Common Import Issues
While TurboTax's import feature is generally reliable, you might encounter some hiccups. Here are a few common issues and how to address them:
"Can't import my 1099" or "Import failed":
Broker Not a Partner: Your financial institution might not be a direct import partner with TurboTax. In this case, manual entry is your only option.
Incorrect Login Credentials: Double-check your username and password. Brokerages sometimes have different login portals for tax documents.
Security Settings/Firewall: Temporarily disable any firewall, antivirus software, or pop-up blockers that might be interfering with the connection.
Browser Issues (Online Version): Try a different web browser (Chrome, Edge, Firefox) or clear your browser's cache and cookies.
Forms Not Ready: Even if you have the physical 1099-B, your brokerage might not have enabled it for electronic import yet. Some institutions have specific dates when forms become available for import.
Large Number of Transactions: If you have an exceptionally high number of transactions (e.g., thousands), the import might time out. In such cases, TurboTax might recommend entering summary totals and attaching a PDF of your 1099-B, or using the desktop version, which often handles more transactions.
Incomplete or Inaccurate Import:
Partial Import: Sometimes only certain sections (e.g., 1099-INT and 1099-DIV but not 1099-B) might import. This can happen if the brokerage issues consolidated statements in phases. Wait for the final consolidated statement to be available for import.
Cost Basis Missing or Incorrect: This is a common issue, especially for "non-covered" securities (those acquired before 2011) where the cost basis isn't reported to the IRS by the broker. You'll need to manually enter the cost basis in TurboTax for these transactions. Your brokerage statements or personal records should have this information.
Wash Sales not importing correctly: Wash sale adjustments can be complex. If you suspect errors, review your original 1099-B very carefully and manually adjust the entries in TurboTax if needed.
"Error message: TurboTax needs more info for this sale": This usually means a critical piece of information (like date acquired, cost basis, or sales price) is missing or incomplete for a specific transaction. You'll need to manually input the missing details for each affected transaction.
Final Review and Filing
After you've successfully imported and reviewed all your 1099-B data, make sure to:
Run a final review of your entire tax return. TurboTax has a review feature that checks for errors and missed deductions.
Double-check your capital gains and losses on Schedule D. Ensure they align with your expectations and your 1099-B.
Save your tax return frequently.
By following these steps, importing your 1099-B into TurboTax should be a breeze, allowing you to move closer to a stress-free tax filing experience!
10 Related FAQ Questions
Here are 10 frequently asked questions about importing 1099-B into TurboTax, with quick answers:
How to know if my brokerage supports TurboTax import? Most major brokerages (e.g., Fidelity, Schwab, Vanguard, Merrill Lynch) are TurboTax partners. TurboTax usually lists supported institutions during the import process. If your broker isn't listed, you'll need to enter the information manually.
How to manually enter 1099-B data if import fails? After navigating to the 1099-B section, instead of choosing "Import," select "Enter a different way" or "Type it in myself." TurboTax will then guide you through entering each transaction or summary totals from your 1099-B.
How to handle multiple 1099-B forms from different brokers? You will repeat the import process for each brokerage account. TurboTax allows you to add multiple investment accounts and will consolidate the data for your Schedule D.
How to find the "Jump to" link for 1099-B in TurboTax Desktop? In TurboTax Desktop, use the search bar at the top right of the screen. Type "1099-B" and then select the "Jump to" link that appears in the search results.
How to fix an incomplete 1099-B import? First, compare the imported data with your physical 1099-B to identify missing information. You can then often edit the imported entries directly in TurboTax to add the missing details. If a significant portion is missing, you might consider deleting the import and trying again, or entering the data manually.
How to address missing cost basis on my 1099-B? If your 1099-B shows "cost basis not reported to IRS" or a blank cost basis, you'll need to manually input the cost basis for those transactions. Refer to your original purchase confirmations or brokerage statements for this information.
How to handle wash sales reported on my 1099-B? TurboTax should automatically calculate wash sale adjustments if they are correctly reported on your imported 1099-B. Always verify these calculations against your original statement, especially if you have complex wash sale scenarios.
How to upload a PDF of my 1099-B instead of importing? TurboTax Online may prompt you to upload a PDF copy of your 1099-B after you enter summary sales section totals in the investments section. TurboTax Desktop generally does not support direct 1099-B PDF upload for data entry. The PDF upload feature is usually for supporting documentation if required by the IRS.
How to delete an incorrect 1099-B import in TurboTax? In the investment income section, navigate to the summary of your imported forms. You should see an option to "Delete" or "Remove" the imported data for a specific financial institution. Confirm the deletion before proceeding.
How to ensure all my investment income is correctly reported? After importing all your 1099-B forms, meticulously review the "Investment Income" summary section in TurboTax. Then, preview your Schedule D and Form 8949 to confirm that all sales, cost bases, and gains/losses are accurately reflected before filing.
