Preparing your taxes can feel like a daunting task, especially when you're dealing with investment accounts. But what if I told you there's a way to significantly simplify the process of reporting your Ally Invest transactions in TurboTax? You're in the right place! This comprehensive guide will walk you through the steps to import your Ally Invest data into TurboTax, making tax season a little less stressful.
Let's dive in and get your investment income squared away with ease!
A Detailed Guide to Importing Ally Invest into TurboTax
The key to a smooth import is ensuring you have all your necessary documents and understanding the specific nuances of how Ally Invest data integrates with TurboTax.
Step 1: Gather Your Essential Ally Invest Tax Documents
Before you even think about opening TurboTax, you need to ensure you have your official tax documents from Ally Invest. These documents are crucial for accurate reporting, whether you import or manually enter the data.
Understanding Your Ally Invest Tax Forms
Form 1099-B: Proceeds From Broker and Barter Exchange Transactions
This is arguably the most important form for investors. It reports all sales of stocks, bonds, and other securities. It will show your sales proceeds, and often, your cost basis (what you paid for the investment).
Why it's important: This form is used to calculate your capital gains and losses, which are reported on Schedule D and Form 8949.
Form 1099-DIV: Dividends and Distributions
If you received dividends from stocks or mutual funds, this form will detail the amounts. It separates qualified dividends (taxed at lower capital gains rates) from ordinary dividends.
Why it's important: These are reported as income on your tax return.
Form 1099-INT: Interest Income
If you earned interest from cash balances in your Ally Invest account or from certain fixed-income investments, this form will report it.
Why it's important: This is reported as ordinary income.
Form 1099-MISC: Miscellaneous Income
Less common for typical investment accounts, but could report other types of income from Ally Invest.
Form 5498: IRA Contribution Information
If you contributed to an IRA through Ally Invest, this form reports your contributions. Note: This form is typically available later in the year than 1099s, as it covers contributions made for the prior tax year up until the tax deadline.
Accessing Your Documents from Ally Invest
Log in to your Ally Invest account: Go to the official Ally Invest website.
Navigate to Tax Documents/Statements: Look for sections like "Profile & Settings," "Statements & Tax Forms," or "Documents." The exact navigation might vary slightly, but it's usually under a clear heading related to documents or statements.
Select the relevant tax year: Make sure you're selecting the correct tax year for which you're filing.
Download your Forms: Download all applicable 1099 forms (1099-B, 1099-DIV, 1099-INT, etc.) and your 5498 (if applicable) as PDFs. It's a good idea to save these to a dedicated tax folder on your computer.
Pro Tip: Ally Invest often consolidates these forms into a "Consolidated 1099" statement. Look for this, as it will contain all the necessary information in one place.
Step 2: Prepare Your TurboTax Software
Before initiating the import, ensure your TurboTax software (desktop or online) is ready.
Update Your TurboTax Software (Desktop Users)
If you're using TurboTax Desktop, ensure your software is fully updated to the latest version. This helps prevent compatibility issues and ensures you have the most current tax laws and import capabilities.
Open TurboTax.
Go to the "Online" or "Check for Updates" menu option.
Install any available updates.
Verify Your TurboTax Version
For investment income, you typically need TurboTax Premier or TurboTax Home & Business. TurboTax Deluxe generally supports investment income, but Premier and Home & Business are designed for more complex investment situations, including the import of numerous transactions.
Step 3: Initiate the Ally Invest Import in TurboTax
Now for the main event! The import process is designed to be straightforward, but attention to detail is key.
Navigating to the Investment Income Section
Open your tax return in TurboTax.
Go to the "Income & Expenses" tab.
Locate the "Investments and Savings" or "Investment Income" section.
Click "Start" or "Revisit" next to "Stocks, Mutual Funds, Bonds, Other."
The Import Process: Connecting to Ally Invest (via Apex Clearing)
When prompted to enter your investment sales, TurboTax will likely ask if you received a 1099-B or brokerage statement. Select "Yes."
TurboTax will then ask you to choose your financial institution. This is where it gets a little tricky for Ally Invest. Instead of searching for "Ally Invest" or "Ally Financial," you might need to search for Apex Clearing.
Why Apex Clearing? Ally Invest often uses Apex Clearing Corporation as its clearing firm. This means Apex Clearing handles the backend processing of your trades and may be the entity that actually sends the import data to TurboTax.
If you try "Ally Invest" first and it doesn't work, definitely try "Apex Clearing."
Enter Your Login Credentials:
You will be prompted to enter your Apex Account Number (this is not your Ally Invest login ID, but an account number specific to Apex Clearing, often found on your 1099-B).
You will also need to enter your Social Security Number (SSN) or Tax ID Number (TIN).
Ensure these details are entered accurately.
Reviewing the Imported Data
Once the import is complete, TurboTax will display a summary of the imported transactions.
Crucially, do not skip this step! Carefully compare the imported data in TurboTax with your official Ally Invest 1099 forms (especially your 1099-B, 1099-DIV, and 1099-INT).
Check sales proceeds.
Verify cost basis figures.
Confirm dividend and interest amounts.
Look for any discrepancies or missing transactions.
Step 4: Addressing Common Import Issues and Discrepancies
Even with direct import, sometimes issues can arise. Knowing how to troubleshoot them is vital.
Scenario 1: "User is Not Authorized" or Import Failure
Double-check credentials: Ensure your Apex Account Number and SSN are entered exactly as they appear on your tax documents.
Temporary Server Issues: Sometimes, the issue is on Ally Invest's (or Apex Clearing's) side, or TurboTax's import server. Wait a few hours and try again.
Browser Issues (for TurboTax Online): If you're using TurboTax Online, try a different browser (e.g., if you're using Chrome, try Edge or Firefox). Clear your browser's cache and cookies.
Antivirus/Firewall Interference: Temporarily disable your antivirus or firewall software, as it can sometimes block the connection to the financial institution. Remember to re-enable it after the import!
Form Availability: Ensure Ally Invest (or Apex Clearing) has made your final tax forms available for import. Sometimes, brokers release forms in phases, and certain information (like 1099-B with full cost basis) might be available later than others. It's best to wait until your final consolidated 1099 is available.
Scenario 2: Missing or Inaccurate Data After Import
Partial Import: If only some transactions or accounts imported, it could be due to the phased release of tax data by the brokerage. Re-importing after the final forms are available might resolve this.
Multiple Accounts: If you have multiple Ally Invest accounts (e.g., a brokerage account and an IRA), they might generate separate import files or require separate imports.
Manual Adjustment: If the import is incomplete or incorrect, you'll need to manually adjust the entries in TurboTax.
For missing sales, you'll need to enter each transaction individually.
For incorrect cost basis, you'll need to edit the imported transaction and enter the correct amount from your 1099-B.
Large Number of Transactions: If you have a very high volume of trades (e.g., hundreds or thousands), TurboTax Online may have a transaction limit for direct import. In such cases, TurboTax often allows you to enter a summary of your sales categories (e.g., short-term covered, long-term covered) directly from your 1099-B summary pages. You would then attach a PDF of your 1099-B to your e-filed return or mail it in with a paper return.
Step 5: Verify and Finalize Your Investment Income
After importing or manually entering your data, thorough review is essential.
Review Schedule D and Form 8949
TurboTax will automatically populate Schedule D (Capital Gains and Losses) and Form 8949 (Sales and Other Dispositions of Capital Assets) based on your imported or entered data.
Review these forms carefully. Ensure the short-term and long-term gains/losses are categorized correctly and that the totals match your expectations.
Pay attention to cost basis reporting:
"Covered" transactions: These are transactions where your broker has reported the cost basis to the IRS. TurboTax handles these automatically.
"Non-covered" transactions: These are transactions where your broker did not report the cost basis to the IRS (e.g., investments purchased before 2011). You are responsible for determining and entering the cost basis for these. If Ally Invest does not provide it, you'll need to refer to your trade confirmations or past statements.
Check for Wash Sales and Other Adjustments
If you engaged in wash sales (selling a security at a loss and buying a substantially identical security within 30 days before or after the sale), your 1099-B should reflect the disallowed loss. TurboTax typically handles this if the import is complete, but always verify.
Ensure any other adjustments, like foreign taxes paid on dividends (if applicable, reported on 1099-DIV), are correctly captured.
Cross-Reference with Other Tax Documents
Make sure your investment income information integrates correctly with your overall tax return.
For example, if you had bank interest from Ally Bank (not Ally Invest), ensure that 1099-INT is also captured.
By following these steps, you can confidently import your Ally Invest data into TurboTax, ensuring an accurate and efficient tax filing experience. Remember, while the import feature is incredibly helpful, you are ultimately responsible for the accuracy of your tax return. Always take the time to review everything before filing.
Frequently Asked Questions (FAQs)
Here are 10 related "How to" questions with quick answers to help you further:
How to Find my Ally Invest Apex Account Number?
Your Apex Account Number is typically found on your Consolidated 1099 tax statement from Ally Invest (or directly from Apex Clearing). Look for an account number distinct from your regular Ally Invest login ID.
How to Handle Missing Cost Basis on Ally Invest 1099-B?
If your 1099-B shows "cost basis not reported to IRS," you'll need to manually determine the cost basis using your trade confirmations or original purchase statements. Enter this amount in TurboTax when prompted.
How to Manually Enter Ally Invest Transactions in TurboTax?
If import fails or is incomplete, in the "Stocks, Mutual Funds, Bonds, Other" section of TurboTax, select the option to "Enter a summary for each sales category" or "Type it in myself" and input the details from your 1099-B, including sales proceeds, acquisition date, and cost basis for each transaction.
How to Fix "User is Not Authorized" Error During Ally Invest Import?
Double-check your Apex Account Number and SSN. If correct, wait and retry, try a different browser (for online versions), or temporarily disable antivirus software.
How to Import if I have Multiple Ally Invest Accounts?
If you have multiple accounts that generate separate 1099s, you may need to repeat the import process for each account, or TurboTax might combine them during a single import if they are consolidated on one 1099. Always verify.
How to Know When Ally Invest Tax Forms are Available for Import?
Ally Invest typically makes 1099 forms available by late January to mid-February. The most complex forms (like 1099-B with full cost basis) might be available closer to mid-February or early March. Check your Ally Invest online portal for updates.
How to Get a PDF Copy of my Ally Invest 1099?
Log in to your Ally Invest account, navigate to "Statements & Tax Forms" or a similar section, select the relevant tax year, and download the PDF of your Consolidated 1099.
How to Report Wash Sales from Ally Invest in TurboTax?
TurboTax generally handles wash sales automatically if they are reported on your 1099-B. The disallowed loss will be added to the cost basis of the repurchased shares. Verify this adjustment in the detailed breakdown in TurboTax.
How to Correct Imported Data in TurboTax?
After importing, if you find errors, you can go back to the "Stocks, Mutual Funds, Bonds, Other" section, locate the specific transaction, and click "Edit" to correct any incorrect figures.
How to Contact TurboTax Support for Import Issues?
If you've exhausted troubleshooting steps, you can contact TurboTax customer support through their website or phone lines. Be prepared with your Ally Invest account details and the specific error message you're receiving.
