Does FreeTaxUSA allows importing Form 8949 from other software?
I've been using FreeTaxUSA for all my tax needs, but I was just a student, so the taxes were just W2. This time (next tax season) around though I will also have 1099s as well, that too from two different brokerages, and I would actually have two wash sales across the brokerages. So, in order to simplify things I'll probably use TradeLog software to generate my 8949, as it calculates wash sales across my Roth IRA as well, and the complex options trades (actually have wash sales for that too) that I did in my brokerages.
My question is will TaxFreeUSA allow me to just import the form 8949 pdf from there/or upload it separately, because I don't want to make wash sale adjustments manually, and enter incorrect information, especially considering that wash sale for options have a grey area when the underlying equity is similar? If not then I'll just use other software (i.e. TaxAct, TurboTax) that TradeLog directly allows me to import there, and use TaxFreeUSA just for state filing this time.
Answers
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Hello, and thank you for coming to our community.
We do not have an option to upload the complete 1099-B into the software at this time, but we do have the ability to upload the pdf of your 1099-B which can be transmitted with your return to the IRS. Do check back around tax season because we do not know what new features with be released for next tax season, and the 1099-B import feature may be in development.
If you want to use this option, we will have you input the summary pages from each 1099-B. This is usually the first page. This page will have 6 categories total. The first three will be short-term gains or losses. One is for transactions with cost basis reported to the IRS (A), transaction reported to the IRS without cost basis (B) and last for transactions not reported to the IRS (C). The last three will be for long term transactions. One is for transactions with cost basis reported to the IRS (D), transaction reported to the IRS without cost basis (E) and last for transactions not reported to the IRS (F). This method would usually require 1 to 3 manual entries at the most, and 6 entries per 1099-B at the most.
