What is a 1099-B Composite form?
A 1099 composite form is issued in lieu of the need to issue multiple separate 1099 forms. Generally, the composite form will be used to report 1099-B, 1099-INT, 1099-DIV and 1099-OID information.
Can I import my 1099-B?
Starting with tax year 2021, users who purchase the Classic, Premium, or Self-Employed package can now import their capital transactions using our .CSV file provided in the Capital Gains and Losses section. For more information regarding the importation of your capital transactions, please see our KB article on the subject.
For tax years prior to 2021, the program does not have the option to import your transactions automatically/digitally, so you will need to indicate/enter the transactions to the program manually. You have two options when it comes to reporting multiple transactions:
- You can either enter each transaction separately or
- You may group multiple transactions together as one transaction (instructions below)
How do I report the 1099-B composite form?
You will report this information into each individual section within the return associated with the individual sections of your 1099 composite form. You can follow the below pathways to report each individual form entry:
- To report a 1099-MISC (you will enter the information as reported) My Account>>Federal Section>>Income (select my forms)>>1099-MISC.
- To report a 1099-INT, DIV, OID (you will enter the information as reported) My Account>>Federal Section>>Income (select my forms)>>1099-INT, DIV, OID
- To report a 1099-B (you will enter the information as reported) My Account>>Federal Section>>Income (select my forms)>>Capital Gains and Losses. The information on your 1099-B is generally reported on a Form 8949 and/or a Schedule D as a capital gain or loss. Capital gains and losses occur when a taxpayer sells a capital asset such as stocks, bonds, or the sale of your main home.
|1099-B Box#||How to Report|
|Box 1A||Description of Property- A brief description of the item or service for which the amounts are being reported (Apple Stock, Shares of Google stock)|
|Box 1B||Date Acquired- Date the item was purchased|
|Box 1C||Date Sold- Shows the date of sale or exchange|
|Box 1D||Sales Price- The cash proceeds reduced by any commissions or transfer taxes related to the sale|
|Box 1E||Cost- The cost or other basis in the securities (original price)|
|Box 1G||Adjustments - Amount of nondeductible loss in a wash sale transaction or the amount of accrued market discount. (Not a common field - only enter if noted on Form 1099-B)|
|Box 3||Check if proceeds are from Collectibles or QOF|
Federal Tax Withheld- shows backup withholding and must be reported in the program under other Federal withholdings. Go to:
Section 1256 contracts
Check if cost basis is reported to the IRS (If the box for covered is checked then the cost basis is reported to the IRS, if not checked then then cost basis is not reported to the IRS noncovered)
State Tax Withheld- Shows state withholdings and must be reported in the program under other state withholdings. Go to:
How do I report multiple Transactions?
If you have multiple transactions to report, you may be able to group multiple sales together and report them as a single transaction.
To group the transactions into one entry, they must have the following commonalities:
- Long-Term/ Short-Term reported together
- Basis Reported or Basis Not Reported on all transactions lumped together
- Reported from same company
Generally, these are reported in the subtotal line of your 1099-B and are already grouped together for you.
Is my loss limited? Can I carry my loss forward?
Total Losses are limited to a $3,000 ($1,500 for Married Filing Separately) Capital Loss per year. Any Carryover amount will be automatically calculated and reported on the Capital Loss worksheet. You may use the loss carryover amount on your next year’s return. In the next year go to:
- Federal Section
- Income -Select My Forms
- Capital Gain and Losses Schedule D
- Other Capital Gains Data (including Capital Loss Carryover)
Please make sure to keep all records for the IRS regarding these transactions in case the IRS request these documents. Use this table to determine how to report your 1099-B items in the program:
You can read more information about forms 1099-B, 1099-INT, DIV, OID and 1099-MISC with the below links: