turbo tax for small trader

Discussion in 'Taxes and Accounting' started by long, Feb 12, 2022.

  1. long

    long

    One of my clients made one trade last year (profitable) and was trying to do his taxes with TurboTax. He says there wasn't an option to report earnings from futures. Just stocks, bonds, or funds. I've been googling around to see if there is another option for him but haven't found anything. Can he use TurboTax? Or will he need to see an accountant?
     
  2. fan27

    fan27

    I had the same issue a few years back when looking at TurboTax. At the time they did not support Form 1256 for futures.

    https://www.irs.gov/pub/irs-pdf/f6781.pdf

    I went with TaxAct instead.
     
  3. long

    long


    Is TaxAct straight forward? Or will it save him grief by using a human being?
     
  4. Turbo doesn't query whether you have "futures" trading results to include. They ask if you trade "1256 contracts" in the Premier version.
     
    Last edited: Feb 12, 2022
    abc1234 likes this.
  5. long

    long

    I don't know which version he is looking at
     
  6. Big AAPL

    Big AAPL

    I've been reporting sect 1256 with Turbo for close to 10 years now with no issues.
     
    RedSun likes this.
  7. tango29

    tango29

    Same here, for sure 10 years for me.
     
  8. tiddlywinks

    tiddlywinks

    IDK anything about Turbotax, but...

    1) section 1256 futures contract gains/losses are reported on IRS Form 6781.

    2) If you do not use form 6781 for reporting, the IRS smiles and says thank you as the tax advantages of section 1256 futures contracts are lost!!
     
    RedSun likes this.
  9. long

    long

    Do you have to itemize for 1256 to show up? That’s the only thing I can think of that would explain why he can’t find 1256.
     
  10. Big AAPL

    Big AAPL

    I don't think so, because when the Trump admin eliminated the sched A deductions, (for me at least) I was still able to visit the interview. Try searching 1099-B in the app. I am almost sure it is a higher tier that requires an additional purchase, although nominal.
     
    #10     Feb 13, 2022