You're about to embark on the annual tax ritual, and if you're a Fidelity client, you're in luck! TurboTax offers a fantastic feature that allows you to directly import your investment data from Fidelity, saving you heaps of time and minimizing the chances of errors. No more sifting through stacks of paper, trying to manually enter dozens, or even hundreds, of transactions.
So, are you ready to simplify your tax season? Let's dive into this step-by-step guide on how to import your Fidelity information into TurboTax, making tax filing a breeze!
Importing Fidelity into TurboTax: Your Comprehensive Guide
The process of importing your Fidelity tax data into TurboTax is generally straightforward, but it's important to have all your ducks in a row. This guide will walk you through each step, ensuring a smooth import.
Step 1: Prepare for a Seamless Import
Before you even open TurboTax, a little preparation goes a long way. This initial step is crucial to avoid any last-minute hiccups.
Sub-heading: Gather Your Fidelity Credentials
Your Fidelity Username and Password: This might seem obvious, but double-check that you have the correct login details for your Fidelity account. You'll need these to authorize the data transfer.
Access to Your Fidelity Account Online: Ensure you can log in to your Fidelity account through their website. This confirms your credentials are active and your account is accessible.
Sub-heading: Understand Your Fidelity Tax Forms
Fidelity typically provides a Consolidated Form 1099, which combines several different 1099 forms into one comprehensive document. This can include:
Form 1099-B: Reports proceeds from brokerage and barter exchange transactions, including sales of stocks, bonds, and other securities. This is often the most detailed part, especially if you had many trades.
Form 1099-DIV: Reports dividends and distributions from stocks, mutual funds, or ETFs.
Form 1099-INT: Reports interest income earned on investments.
Form 1099-MISC: Reports miscellaneous income (less common for typical investment accounts but good to be aware of).
Form 1099-R: Reports distributions from retirement accounts (like IRAs or 401(k)s). While these are tax forms, sometimes NetBenefits (Fidelity's platform for employer-sponsored plans) does not support direct import to TurboTax, and you might need to manually enter this data. Keep an eye out for this distinction.
Fidelity generally makes these forms available by mid-to-late February each year. Make sure your forms are indeed available and finalized before attempting the import. Sometimes, corrected 1099s are issued, which might cause a delay or require a re-import.
Sub-heading: Ensure TurboTax is Up-to-Date
If you're using the desktop version of TurboTax, ensure you have the latest updates installed. Software glitches or outdated versions can sometimes prevent successful imports. For TurboTax Online, you'll always be on the most current version.
Step 2: Initiate the Import Process in TurboTax
Now that you're prepared, let's jump into TurboTax.
Sub-heading: Navigate to the Investment Income Section
Open your TurboTax return: Launch the TurboTax software or log in to your TurboTax Online account.
Go to the "Income & Expenses" section: This is typically found on the left-hand menu or as a prominent section on your tax home screen.
Find "Investments and Savings (1099-B, 1099-DIV, 1099-INT, etc.)": Look for a section related to investment income. The wording might vary slightly depending on your TurboTax version, but it will generally refer to "Investments," "Stocks," or specific 1099 forms.
Click "Start" or "Revisit": Once you locate the appropriate section, click the button to begin or continue working on it.
Sub-heading: Select Fidelity as Your Financial Institution
"Did you sell any investments in [Tax Year]?" or similar question: TurboTax will likely ask you if you sold any investments during the tax year. Select "Yes."
"Did you get a 1099-B or a brokerage statement for these sales?" Again, select "Yes."
Search for your institution: You'll be prompted to search for your financial institution. Type "Fidelity" into the search bar.
Choose "Fidelity Investments": From the list that appears, select Fidelity Investments. It's important to choose the correct Fidelity option, as there might be other related entities listed.
Step 3: Authorize the Data Import
This is where the magic happens! TurboTax will now connect with your Fidelity account.
Sub-heading: Enter Your Fidelity Login Credentials
Secure Login Prompt: TurboTax will open a secure window or redirect you to a new tab to log in to your Fidelity account. This is a direct connection between TurboTax and Fidelity, ensuring your data remains private.
Enter your Fidelity Username and Password: Carefully input the username and password you use to log in to Fidelity's website.
Click "Log In" or "Continue": After entering your credentials, click the button to proceed.
Important Note: If you have two-factor authentication (2FA) enabled on your Fidelity account (which you absolutely should for security!), you might be prompted for a verification code via text message or a security app. Have your phone or 2FA device ready.
Sub-heading: Confirm Data to Import
Data Selection (if applicable): In some cases, Fidelity or TurboTax might ask you to select which forms or accounts you wish to import. Generally, you'll want to import all available tax forms for the relevant tax year.
Review and Confirm: TurboTax will often display a summary of the data it's about to import. Take a moment to quickly review this summary. While you'll perform a more thorough review later, this is a good initial check.
Click "Import Now" or "Continue": Once you're satisfied, click the button to initiate the actual data transfer.
Step 4: Review and Verify Imported Data
This is arguably the most critical step. Do not skip this! While the automated import is incredibly convenient, it's your responsibility to ensure the accuracy of your tax return.
Sub-heading: Compare with Your Fidelity Tax Documents
Access your Digital Fidelity Forms: Open the digital copies of your Fidelity tax forms (the Consolidated 1099, 1099-R, etc.) on the Fidelity website.
Side-by-Side Comparison: Go through each section in TurboTax that was populated by the Fidelity import and compare it directly with the corresponding figures on your Fidelity tax forms.
Dividends (1099-DIV): Check ordinary dividends, qualified dividends, and any foreign tax paid.
Interest (1099-INT): Verify interest income amounts.
Sales of Securities (1099-B): This section requires the most scrutiny, especially if you had many trades.
Proceeds from sales
Cost basis (very important for calculating gains/losses)
Wash sales (if applicable)
Short-term vs. long-term gains/losses
Retirement Distributions (1099-R): If you manually entered these, double-check the amounts and distribution codes.
Pay close attention to "cost basis" on Form 1099-B. Sometimes, for older investments or transferred assets, the cost basis might be "unknown" or "not reported to IRS." In such cases, you will need to manually enter the correct cost basis, which you can usually find on your original purchase statements or by contacting Fidelity.
Sub-heading: Address Any Discrepancies
Minor Differences: Small rounding differences (a few cents) are generally nothing to worry about.
Significant Discrepancies: If you find larger differences, investigate immediately.
First, ensure you imported the correct year's forms.
Check if Fidelity issued any "corrected" 1099s after your initial import. If so, you might need to re-import or manually adjust.
Confirm all accounts were imported. Sometimes, if you have multiple Fidelity accounts, you might need to import each separately.
Browser issues: As noted in some support forums, certain browsers (like Brave) have sometimes caused import issues. If you encounter problems, try switching your default browser (e.g., to Chrome, Firefox, or Edge) and attempt the import again.
Clear browser cache/cookies: Occasionally, old data or corrupted cookies can interfere. Clearing your browser's cache and cookies before attempting the import again can resolve this.
Contact TurboTax Support: If you're unable to resolve a significant discrepancy, reach out to TurboTax customer support for assistance. They can help troubleshoot import issues.
Manual Entry as a Last Resort: If all else fails and you're confident in the numbers on your Fidelity forms, you always have the option to manually enter the data into TurboTax. While more time-consuming, it guarantees accuracy if direct import is problematic.
Step 5: Continue with Your Tax Return
Once you've meticulously reviewed and confirmed that your Fidelity data has been accurately imported into TurboTax, you can proceed with the rest of your tax return. TurboTax will use this imported information to calculate your capital gains and losses, dividend income, and interest income, ensuring these are correctly reported on your Schedule B (Interest and Ordinary Dividends) and Schedule D (Capital Gains and Losses), among other relevant forms.
Troubleshooting Common Import Issues
While the import process is usually smooth, you might encounter a few bumps. Here are some common issues and how to tackle them:
"Import Volume Exceeded" Error: This can happen if you have an extremely large number of transactions. TurboTax has limits on how much data it can import directly. If you face this, you might need to try importing smaller chunks of data, or as a last resort, summarize your transactions (this is IRS-approved if done correctly, but it's best to consult a tax professional or TurboTax's specific guidance on summarizing transactions).
Fidelity NetBenefits Not Importing: As mentioned, tax forms from Fidelity NetBenefits (typically for employer-sponsored plans like 401(k)s) often do not support direct import into TurboTax. You will likely need to manually enter any 1099-R information from your NetBenefits account.
Blank Login Screen/Browser Issues: If the Fidelity login screen doesn't load or appears blank, it could be a browser compatibility issue or a pop-up blocker.
Disable pop-up blockers temporarily.
Try a different web browser as your default.
Clear your browser's cache and cookies.
"Tax form data is unavailable for import" / Forms Not Ready: This means Fidelity hasn't yet released the tax forms for electronic import, or they are still processing corrected versions. Check your Fidelity account directly to confirm the availability of your official tax forms. Don't try to import until Fidelity confirms the forms are ready.
10 Related FAQ Questions
Here are 10 frequently asked questions, starting with "How to," along with quick answers, to further assist you:
How to check if my Fidelity 1099 is ready for import?
You can check by logging into your Fidelity account online, navigating to the "Statements & Tax Forms" section, and then the "Tax Forms" tab. It will indicate if your forms are available.
How to resolve "Import volume exceeded" when importing from Fidelity?
If you receive this error, try clearing your browser's cache and cookies, or attempting the import at a less busy time. If the issue persists due to a high number of transactions, you might need to manually summarize your transactions or consult TurboTax support.
How to import Fidelity NetBenefits forms into TurboTax?
Unfortunately, direct import for Fidelity NetBenefits (employer-sponsored plans) is often not supported. You will likely need to manually enter the information from your 1099-R and other relevant forms from your NetBenefits account.
How to find my Fidelity username and password if I forgot them?
Visit the Fidelity login page and use the "Forgot username or password?" link. Follow the prompts to recover your credentials.
How to ensure all my Fidelity accounts are imported?
During the import process, TurboTax should typically offer to import all available tax forms for your connected Fidelity accounts. If you have multiple accounts under different login credentials, you might need to repeat the import process for each.
How to correct errors after importing Fidelity data into TurboTax?
If you spot errors, you can go back to the relevant section in TurboTax (e.g., "Investments and Savings"), click "Edit" or "Delete" next to the imported Fidelity entry, and then manually adjust or re-enter the correct information based on your official Fidelity tax forms.
How to handle corrected 1099 forms from Fidelity after importing?
If Fidelity issues a corrected 1099 after you've already imported, you'll need to re-import the data into TurboTax or manually update the affected entries to reflect the corrected information.
How to get a discount on TurboTax as a Fidelity client?
Fidelity often partners with TurboTax to offer discounts to its clients. Check the "Tax Information" or "Marketplace" section on the Fidelity website for any available promotions or links to discounted TurboTax products.
How to manually enter Fidelity investment data if import fails?
If direct import fails repeatedly, you can choose to "Enter it myself" or "Type it in" when prompted in TurboTax's investment section. You will then manually input all the necessary details from your Fidelity 1099 forms (1099-B, 1099-DIV, 1099-INT, etc.).
How to find my Fidelity 1099-B cost basis if it's not reported?
If your 1099-B states that the cost basis is "unknown" or "not reported to IRS," you'll need to find your original purchase records. This could be old statements from Fidelity, or if the asset was transferred, statements from the previous brokerage. If you can't find it, contact Fidelity for assistance or consult a tax professional.
