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Question

Every 1099-B entry imported from ETrade shows up incorrectly with Adjustment Code N

Forum|Forum|2 years ago
February 17, 2024
25 replies
0 views

I imported my consolidated 1099 from ETrade, and every sale is incorrectly coming up with Adjustment Code N. "Smart Check" fails, because Adjustment Code N requires an adjustment amount, which, of course, there is none. It will neither let me remove the adjustment code-- it just sets it back when I clear the textfield-- nor will it let me set the adjustment value to 0, so I'm stuck. There are hundreds of lines in this 1099. Any suggestions?

TurboTax Home & Biz Windows

splozano

I'm having the exact same issue. Hoping to get an answer for this.

johnsat4441

I am having the same problem. It is with Etrade accounts too. I have spent the last three hours trying to figure it out before checking in here. every transaction has it. At least now I know it isn't me.

terpsuckaAuthor

In digging around I discovered that the 1099 is coming from ETrade with that N adjustment code. So it's an ETrade issue and a TurboTax issue-- ETrade because they're sending bum data, and TurboTax because there's no way to manually fix it.

DianeW777

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:

TurboTax Online:

Go to the black panel on the left side of your program and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.

TurboTax CD/Download:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

Click on Online in the top left menu of TurboTax CD/Download for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution.
Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@terpsucka

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

wonki

I have same issue, there are 2 1099 files from Etrade this year, digging deeper, all those errors are coming from transactions in the second 1099 file which covers Septermber to December.

annieland

Employee

@wonki You're right, the imported 1099-B's on my end are slightly different , the former with B codes and the latter BN. But both respective Capital Asset Sales worksheets throw red ! errors anyway. Adjustment amounts show up in some boxes and not others. I've deleted and re-imported 3 times so far and no amount of meticulous entry helps, so yeah, something is buggy. Hopefully it's not on E*Trade's side where TT won't be able to fix it.

jared5537

What does the code N even mean.

wiss77

Issue is N cannot be deleted.

The washsales W can not be inserted.

The Adjustment of RSUs and ESPPs code B can not be inserted.

Called Turbotax and they are absolutely clueless! its a bug obviously on the desktop version.

annieland

Employee

I swear, every year there is a bug with RSU/ESPP adjustments in TT that takes them 3 weeks to fix after telling everyone we're just doing it wrong. At least now I know I didn't waste all of Saturday because I'm the idiot. Every year I get used to the cost basis adjustment flow and every year they change it again making it more and more obnoxious. It's a total mess on the Mac desktop version right now. Perhaps an update in due time will rectify this...

DWlassie

Same here and judging by the number of incorrect codes, it looks related to the Morgan Stanley conversion. I can manually edit the amounts to $0 but the codes will be wrong.

johnnj967

I have the same issue and was able to enter $0 as the adjustment amount. The amounts are correct but the adjustment code is "N" for nominee which is incorrect. Not sure what to do!

f4tq

I havean E*Trade/MS 1099 reflecting RSU sales but some of them have no cost basis -- i.e. it's blank not 0.

In prior years, I've had to go in to insert that but there is no edit feature this year. In fact, the display seems clipped which makes it look like a bug. Is it?

The code in my case is E.

The E*Trade site has a tax supplement which correctly shows my basis but there is no way to input it.

Should I switch to the 'Form' view and insert it?

Sure seems like a TT bug...

-Chris

wiss77

so for ESPP and RSUs cost basis is 0 and then you say I have the correct cost basis and you insert it there (not in the original cost basis).

for codes:

you would put W for Wash sales

B for adjusted cost basis such RSUs and ESPPs

N is for nominee for the actual owner.

The main issue is that TT is importing everything as N (wrong) and you cant adjust and change anything. Even if you put 0s, having code N tells IRS you are the nominee on these stocks which is wrong.

BrimstoneFox

Possibly the worst part is the instructions on the IRS website: https://www.irs.gov/instructions/i8949#en_US_2022_publink[phone number removed]

Spoiler

I did that for my first transaction of course following it you negate the profit, and it does not quite make sense, whether, pretty sure I did not meet the first condition, I found some other documentation that I'm pretty sure was written backwards too (which number you subtract from which, it made no sense) I think it was related to RSU cost basis on the IRS website but I don't remember.

My plan is to just try again in a few days.

DXY2021

Same issue here - i'm assuming this is an Etrade or TT issue - hoping someone can help

i had limited trades - the 1099 looks fine on paper but the import shows N for all trades. I bet this has to do with the conversion to Morgan Stanley somehow. I was able to enter 0 for the adjustment to clear the error although it still shows N on the form with a 0 by it - honestly i forget if i did this during smart review or looking at the form and clicking on the sheets with the exclamation mark. I'm hoping they correct the issue so i can simply upload it clean again

LRickD

1186086 - Washington

joecan

So how do we log an issue with TurboTax to get a fix? What's the process? I can't find a way to do it.

I don't think I know enough to manually enter the numbers myself

jonarmst_303

This is definitely a bug. Intuit, is there any sort of time schedule on a fix for this? I cannot update the adjustment code either. I swear, EVERY year there is a serious problem with the import from E*Trade. I was thinking it almost worked this year and wasn't going to have to enter everything manually like I did last year but now I'm not so sure. Also, why does E*Trade send an "N" when it clearly expects no code at all and that's not allowable? Seems like a serious bug on both sides.

DWlassie

It will let you manually use a $0 for the adjustment amount after you run an error check but you are still stuck with an N code. Anything post conversion to Morgan Stanley has the N code so it's an ET issue unless they have an explanation why it's coded nominee.

jonarmst_303

Sorry, but it's definitely a bug on TurboTax aside from the fact E*Trade shouldn't be sending those "N" codes. I get the following message:

"Adjustment code(s) should not have an entry when a disallowed wash sale amount is entered. Remove the disallowed wash sales amount and include the adjustment here, or remove this manually entered adjustment code."

I then proceed to remove "N" from the text box and forward through the screens and then when I "Run Smart Check" it does not save the changes.

It seems like there are quite a number of other people are having this same issue so I'm wondering if this is actively being tracked as a bug.

MannyN

Same issue here. Unsure about what to do about it. Deleting imported entries and entering them manually is not practical in my situation. Assuming the import is fixed, re-importing also sounds impractical as it may require repeating all the adjustments to many (100+) transactions. I tried using the grouping approach one year but then was forced to mail in paper copies listing individual transactions.