Individuals who receive income from the sale of stocks, bonds, or other securities typically receive a Form 1099-B from their broker. This form reports the proceeds from these transactions and is essential for accurate tax reporting. Choosing the right tax software can simplify the process of entering and managing Form 1099-B data. This guide will help you determine the most suitable TurboTax software for your specific needs if you have a Form 1099-B.
Understanding Form 1099-B
Form 1099-B provides information about the sale or exchange of stocks, bonds, and other securities. It includes details such as the date of the transaction, the proceeds received, and the cost basis of the asset. This information is crucial for calculating capital gains or losses, which are taxable income.
Choosing the Right TurboTax Software
TurboTax offers a range of software options tailored to different tax situations. The best software for you depends on your specific needs and the complexity of your tax return.
TurboTax Free Edition:
- Suitable for simple tax returns with limited income and deductions.
- Does not support Form 1099-B import.
TurboTax Deluxe:
- Ideal for individuals with basic tax needs and itemized deductions.
- Supports Form 1099-B import.
TurboTax Premier:
- Designed for investors and homeowners with more complex tax situations.
- Includes advanced features like investment tracking and rental property management.
- Supports Form 1099-B import.
TurboTax Self-Employed:
- Specifically tailored for self-employed individuals and small business owners.
- Includes features for tracking business expenses and income.
- Supports Form 1099-B import.
TurboTax Live:
- Offers personalized assistance from tax experts.
- Includes all the features of TurboTax Premier, plus access to live tax advice.
- Supports Form 1099-B import.
How to Enter Form 1099-B in TurboTax
Once you have selected the appropriate TurboTax software, follow these steps to enter your Form 1099-B:
- Gather your Form 1099-B: Ensure you have all the necessary information from your broker.
- Open TurboTax: Launch the TurboTax software on your computer or mobile device.
- Start a new return: If you are starting a new tax return, select the “File” menu and choose “New Return.”
- Select your filing status: Indicate your filing status (e.g., single, married filing jointly).
- Enter your personal information: Provide your personal details, such as name, address, and Social Security number.
- Navigate to the “Investments” section: Locate the section dedicated to investments within the TurboTax interface.
- Choose “Stocks, Bonds, Mutual Funds, etc.”:** Select the option to enter information about stocks, bonds, and other investments.
- Enter Form 1099-B data: Manually enter the information from your Form 1099-B into the provided fields. Alternatively, you can import the form directly from your computer or mobile device.
Tips for Entering Form 1099-B
- Double-check the accuracy of the information entered.
- If you have multiple Form 1099-B forms, enter each one separately.
- Keep a copy of your Form 1099-B for your records.
- If you encounter any difficulties or have questions, consult the TurboTax help section or contact customer support.
Choosing the right TurboTax software and accurately entering your Form 1099-B data is essential for filing an accurate tax return. By following the steps outlined in this guide, you can ensure that your investment income is properly reported and that you receive the maximum refund or pay the minimum tax liability.
Entering stock sales/1099-B in TurboTax
FAQ
Does TurboTax support Form 1099-B?
What version of TurboTax do I need for 1099?
Where do I put 1099-B on my tax return?
Do I need TurboTax Deluxe or Premier?
Do I need a 1099-B form?
Tax filers need to reference their 1099-B forms when filling out their tax returns (Form 1040) and other forms investors typically need to deal with at tax time, such as Schedule D and Form 8949. A 1099-B reports on transactions made in non-retirement brokerage accounts.
Can TurboTax import 1099 data from my financial institution?
Answer: Yes, all versions of TurboTax can import 1099 data from your financial institution. Note, however, that investments such as stocks or bonds are reported on 1099-B. You need TurboTax Premier or higher to complete the forms related to investments. Contact your bank or broker to find out if they participate in the download feature.
What is a Form 1099-B?
Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) reports the sale of stocks, bonds, mutual funds, and other securities. Here’s where you ent
How do I attach a Form 1099-B to my tax return?
Here’s how to attach a Form 1099-B to your tax return in TurboTax Online: On the screen Now we’ll help you upload your 1099-B since the IRS requires a copy, select Browse to upload a PDF file of your 1099-B from your computer (you can also drag and drop the file into the upload box on this screen).