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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.

What to include in your attached statement:

The Form 8949 format is similar to Schedule D-1. Your attached statement should include the following columns:

  • Description of property
  • Date acquired
  • Date sold
  • Sales Proceeds
  • Cost or other basis
  • Code, if applicable
  • Adjustment amount, if applicable
  • Gain or Loss

What Form 8949 is used for:

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:

  • For the short-term category, there are three options:
    • (A) Received a Form 1099-B showing basis was reported to the IRS
    • (B) Received a Form 1099-B showing basis was NOT reported to the IRS
    • (C) Did not receive a Form 1099-B
  • For the long-term category, there are three options:
    • (D) Received a Form 1099-B showing basis was reported to the IRS
    • (E) Received a Form 1099-B showing basis was NOT reported to the IRS
    • (F) Did not receive a Form 1099-B

Form 8949 attachments:

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 ).

Entering totals from a brokerage statement:

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.

Previous entries for transactions:

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:

  1. Click Federal. On smaller devices, click  in the upper left-hand corner, then select Federal.
  2. Click Investment Income to expand the category and then click Gain or loss on the sale of investments
  3. Click Capital gain or loss (Form 1099-B) and on the Investment Sales - Summary screen, all transactions will be listed, whether they were entered through the manual Form 1099-B entry section in the Q&A or uploaded from a .CSV file
  4. Click Delete All below the entries (or you can click Delete to the right of only those you wish to delete). If all transactions will be reflected on the statements you're going to mail, choose Delete All.
  5. Click OK to confirm deletion. Desktop Users: If you clicked Delete All, click Delete Forms to confirm

Re-entering deleted transactions:

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:

  1. Click Federal. On smaller devices, click  in the upper left-hand corner, then select Federal.
  2. Click Investment Income to expand the category and then click Gain or loss on the sale of investments
  3. Click Enter totals from a statement of transactions you will attach to your return
  4. Click +Add Form 8949 Attachment to create a new copy of the attached statement or click Review to review a copy already created
  5. On the following screen, check the box, then click Continue
  6. Enter the name of the brokerage firm (e.g. TD Ameritrade, E*Trade) or software vendor (e.g. GainsKeeper, TradeLog, Form8949.com) who supplied you with the attachment and click Continue
  7. You will now enter the summary totals based upon each reporting category:
    • For each reporting category you need to report, click +Add Form 8949 Attachment.
    • To review previously entered Summary Total amounts, click Review.
  8. Select the reporting category for the totals you are entering and click Continue.
  9. Enter the summary totals for the reporting category previously select and click Continue
  10. The next screen will show how the information will be reported on Form 8949
  11. Click Continue to enter the information for the next brokerage statement.  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 Enter or Edit Form 1099-B ).

Before entering your summary totals, separate the transactions based on the reporting category as defined above.

Things to Note

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.

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