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, it is possible to attach a Summary Totals statement to represent each brokerage statement you received. 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. If you choose this option, you will have the ability to attach a PDF of each statement when you electronically file.
The Form 8949 format is similar to the previous Schedule D-1. If attaching a statement along with your return, 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 to represent each brokerage statement you received. Each Form 8949 attachment will allow you to enter totals for both the taxpayer and spouse for all six reporting categories. If you have more than six brokerage statements, you would want to enter the six containing the most transactions by this method and then enter the transactions on the other statements via another method (see the link Enter or Edit Form 1099-B at the end of this email).
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.
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 All option. Once you select OK or Delete Forms, 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 information for the Form 8949 attachments:
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.
If filing electronically, you will have the option during the e-file steps to attach your Form 8949 attachment as a PDF. If you do NOT have a PDF version of your Form 8949 attachment, you will still be able to file electronically. After completing the e-file steps, you will be prompted to print Form 8453. On Form 8453 there will be a box marked indicating you have a Form 8949 attachment. You will mail Form 8453 and your Form 8949 attachment to the IRS. If you have multiple Form 8949 attachments and include one of these attachments as a PDF during the e-file steps, you will then only need to mail the Form 8949 attachment that was NOT attached as a PDF. If filing a paper return, you will simply include the Form 8949 attachment(s) along with your tax return.