TaxAct® allows you to enter up to 2,000 items on Form 1099-B for capital gain and loss transactions. If your number of transactions is greater than 2,000, attach a summary totals statement to represent each brokerage statement.
Instead of entering each sales transaction individually, list the details of each sale on a statement similar in format to Form 8949. If you choose this option, you can attach a PDF of each statement when you electronically file.
The Form 8949 format is similar to Schedule D-1. Your attached 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 the transactions had a cost basis reported on Form 1099-B.
There are six reporting options on Form 1099-B:
TaxAct allows up to six Form 8949 attachments to be entered into your tax return to represent each brokerage statement received. Each Form 8949 attachment will allow you to enter totals for both the taxpayer and spouse for all six reporting options. If you have more than six brokerage statements, enter the six containing the most transactions by this method and then enter the transactions on the other statements via another method (see Enter or Edit Form 1099-B ).
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, enter each statement's totals separately. You cannot combine brokerage statement totals onto one attachment, unless you have already combined these through a third-party software vendor.
If you've already made entries for transactions (Forms 1099-B or 1099-S) in the program, verify these transactions are 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 or delete previous entries:
If you have a lot of transactions listed, 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 is to enter them again or reimport the .CSV file.
To enter the information for the Form 8949 attachments:
Before entering your summary totals, separate the transactions based on the reporting category as defined above.
Form 1099-B received from your broker may report adjustment amounts to be entered on Form 8949, Column G. Enter this information using the total adjustment amount fields.
If filing electronically, you'll have the option to add your Form 8949 attachment as a PDF. If you don't have a PDF version of your Form 8949 attachment, you can still e-file.
After completing the e-file steps, you'll be prompted to print Form 8453. On Form 8453 there will be a box marked that indicates you have a Form 8949 attachment. 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, mail only the Form 8949 attachment that was not attached as a PDF.
If filing a paper return, include the Form 8949 attachments with your tax return.