I am a trader. When filing taxes, I used to use Turbotax to import my 1099 from the clearing firm. This year is different for me. I have thousands of line entries in my 1099. This is beyond Turbotax's 2000 line limit. Also my trading amount (cost and proceed) is beyond it's $10M limit. When I tried to import 1099 as before, I got an error in Turbotax. I also tried the best version of HRBlock, same problem. What software(s) do other traders use in cases like this? At the minimum, I would like the software to have the following functions: (1) Fill form 8948 automatically based on my 1099. I can not enter thousands of lines by hand. (2) Allows me to file to IRS electronically. I don't want to print out 100s or possibly 1000s of pages and send it out to IRS. Thanks!
Isn't there an option to group all trades in the different categories (like covered, long-term) per brokerage? Maybe you can only use that in certain simplified situations.
Forgot to mention that, I decided to trust the 1099 form my broker gave me. I do not want to do any further calculation/correction. So probably software like tradelog is overkill. I just need a software to populate the 8949 form for me. Also, the first thing pops up from a google search is this: www.form8949.com Has anyone tried it, is it a scam site? (Looks a bit to me...)
You better do some further research. Reporting requirements are different for brokerages than they are for brokerage customers. If you have a LOT of trades your better off sucking it up and get TradeLog. It will handle wash sales, exercise and assignments and all the other nuances of option trading.
I agree with that I only do options and less that 100 trades per year and I found 2 mistakes in two different years Who knows how many mistakes they can make with thousands of trades I never trust the 1099 from the broker I log my own trades and than just compare the total from the 1099 with my results If they don't match I go deeper and find out why Is it something I did or is it their fault Maybe a few months after you filed your taxes they may send a corrected statement but than you have to go through the hassle of filing an amended return The worst is when they miscalculate the mark to market value at the end of the year and don't account for that the next year That can add up to hundreds of thousands of dollars which the IRS I am sure would want to look into