TaxACT supports the entry of 2,000 Forms 1099-B for capital gain and loss transactions. If the total number of transactions you need to enter is greater than 2,000, per the IRS instructions, it is possible to attach a Summary Totals statement. Instead of entering each of the sales transactions individually in to the TaxACT program, you will list the details of each sale on a statement similar in format to Form 8949.
The Form 8949 format is similar to the previous Schedule D-1. If attaching a statement along with your return (or with Form 8453 if electronically filing), then that statement should include the following columns:
Form 8949 is used in conjunction with Schedule D due to new reporting requirements for capital gain (loss) transactions outlined by the IRS. Now, the taxpayer must differentiate whether or not the transactions had a cost basis reported to them on Form 1099-B. There are six reporting categories:
TaxACT allows up to six Form 8949 attachments to be entered into your tax return. Each Form 8949 attachment will allow you to enter totals for both the taxpayer and spouse for all six reporting categories.
If you are entering totals from a statement you received from your brokerage firm, you must separate and enter the totals based upon the reporting category the transactions fall under for Form 8949. If you have multiple brokerage statements, each brokerage statement totals must be entered separately. You CANNOT combine brokerage statement totals onto one attachment, unless you have already combined these through a third party software vendor.
When you choose to attach a statement for Form 8949 in TaxACT, Form 8453 U.S. Individual Income Tax Transmittal for an IRS e-file Return will automatically be created when you complete the Filing steps. At that time, there will be a screen titled E-filing - Print 8453 where you will be prompted to print Form 8453. When the form prints, a box will be checked at the bottom of the form, Form 8949, Continuation Sheet... or long-term capital gain (loss) records. This enables the return to still be electronically filed and the statements sent to the IRS along with Form 8453.
If you have already made entries for transactions (Forms 1099-B or 1099-S) in the program, you will need to verify these transactions are NOT included in the statements you plan to include with your return. If your previously entered transactions are listed on the statement you plan to attach with your return, you will need to delete those entries from the program before entering your statement totals. To review and/or delete these previous entries, follow the steps below:
Note: If you have a large quantity of transactions listed you may need to scroll down the screen to see the delete option. Once you select OK, the transactions selected will be deleted and the only way to get them back would be to enter them again or re-import the .CSV file.
To enter the summary amounts which will represent the sum total of the statement(s) you will send with Form 8453:
Before entering your summary totals, you will need to separate the transactions based upon the reporting category as defined above.
Note that the Form 1099-B received from your broker may report adjustment amounts to be entered on Form 8949, Column (g). You can enter this information using the Total Adjustment Amount fields.
Per the IRS Instructions for Schedule D Capital Gains and Losses, page D-8:
Exception to reporting each transaction on a separate line. Instead of reporting each of your transactions on a separate line of Form 8949, you can report them on an attached statement containing all the same information as Form 8949 and in a similar format. Use as many attached statements as you need. Enter the combined totals from all your attached statements on a Form 8949 with the appropriate box checked. For example, report on Line 3 of Form 8949 with Box A checked all long-term gains and losses from transactions your broker reported to you on a statement showing that the basis of the property sold was reported to the IRS. If you have more than one attachment (for example, statements from more than one broker), report the totals from each attachment on a separate line.
Do not enter "available upon request" and summary totals in lieu of reporting the details of each transaction on Form(s) 8949 or attached statements.
E-File. If you e-file your return but choose not to include your transactions on the electronic short-term capital gain (or loss) or long-term capital gain (or loss) records, you must attach Form 8949 (or a statement with the same information) to Form 8453 and mail the forms to the IRS.