In ETrade 1099-B, there is a section "Options Subject to Section 1256 Reporting." Entries are not included in transaction list. How to report them?

Forum|Forum|1 year ago
February 27, 2025
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If I try to add them manually to transaction list, it warns the entries should match what is reported in 1099-B. Any discrepancy tends to trigger an audit.

DavidD66

Your Options Subject to Section 1256 Reporting are not reported with the 1099-B transactions. They are subject to different rules and reported in a different section. To enter your Section 1256 Options in TurboTax Online, From the Tax Home:

Click on Income
Scroll down to "Less Common Investments and Savings"
Next to "Contracts and Straddles" select "Start"
Answer "Yes" to "Any Straddles or Section 1256 Contracts?"
On the next screen, it is highly unlikely that you need to make any elections, so just click "Continue"
On the screen with "Contracts and Straddles", more than likely you only need to select Section 1256 contracts... You may want to read the IRS instructions for Form 6781, Gains and Losses from Section 1256 Contracts and Straddles
Select "I'll report the totals from each broker or account.
Enter the information to report your your profits and losses from your Section 1256 Options transactions.