Active Traders Who Use TurboTax Online Edition
Active traders who use Intuit TurboTax face some special challenges. Below is an explanation.
TurboTax Online Import Limits
The online edition of TurboTax for tax year 2020 allows you to import up to 1500 transactions. If you have more than this number, you need to work around the limitation by:
- entering or importing "summary transactions" into the program and
- attaching statements containing detailed transaction information.
Work-Around Part 1: Getting Your Total Gain or Loss Amounts into Form 1040 Schedule D
Enter Total Gain or Loss Data
If you have more transactions than can be imported, this Turbo Tax support page describes how you can you can "enter a summary for each sales category"
However, if the total sales volume for a category is $10,000,000 or more, you cannot enter the total. Consider working around this by entering only the total gain or loss amount. If gain, enter the gain as sales price with cost of zero. If loss, enter the loss as cost (as positive number) with sales price of zero.
Import Total Gain or Loss Data
Using our app, you can import the "summary of each sales category" into TurboTax — even if the total sales volume for each category is more than $10,000,000. Instructions for doing so are shown in the app.
Work-Around Part 2: Attaching Required Statements
Our app will generate for you the required PDF statements showing your transaction details. Instructions for downloading these statements are shown in the app. These statements are intended to be attached to your tax return.
When you electronically file your income tax return, you either (1) electronically attach the PDF statement to the return or (2) mail in a paper statement.
(1) Electronic Filing - Electronic Attachment of Statements
If you import your total gain or loss data, see these special instructions .
If you enter your total gain or loss data, see the following:
As seen in the below screen shot, after entering your summary transactions, you will be given the opportunity to upload your PDF statements for inclusion in your electronically-filed return.
Important note: The folks at Intuit are saying the IRS requires a copy of your Form 1099-B under these circumstances. But this is not an accurate statement.
In the relevant IRS instructions the IRS says:
Instead of reporting each of your transactions on a separate row of Part I or II, you can report them on an attached statement containing all the same information as Parts I and II and in a similar format (that is, description of property, dates of acquisition and disposition, proceeds, basis, adjustment and code(s), and gain or (loss)). Use as many attached statements as you need. Enter the combined totals from all your attached statements on Parts I and II with the appropriate box checked.
The statement we provide you conforms to the IRS requirements and should be uploaded for attachment to your return.
Upload the statement for attachment to your return using this screen.
(2) Electronic Filing - Mail IRS Form 8453 and Statements
Print and mail the statements showing your transaction details using IRS Form 8453 as cover sheet.
But this can sometimes literally require reams of paper.
- Inspect the Schedule D generated by TurboTax to make sure it has the same totals as the Schedule D generated by Form8949.com.
- Remove the Schedule D and Forms 8949 generated by TurboTax.
- Replace them with the Schedule D and Forms 8949 (and Form 8949 Statements, if applicable) generated by Form8949.com. These can be downloaded from the Download Results page in the app.