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Exporting 2011 Schedule D Information for US Income Tax to Turbotax or other tax software

    General discussion

  • (I have tested this on Sunset and TurboTax for my case. I just recently got the 1099-B to see how it looks, so I was able to get this far so far. I was able to correct my writeup about 13 hours, with the help of Ameridan's comments. There may be errors or omissions. I already made some significant changes. Let's hope any remaining errors are obvious. I would work with a copy of your tax file until you are confident in this. Corrections and comments are welcome. Experiences with H&R Block and other tax software are particularly wanted. See Ameridan's comments. I expect that more info will be coming in as we learn)

    It's Income tax season in the US again.  2011 taxes bring a new form that is going to make things more complex: IRS form 8949. This form replaces schedule D-1 but adds more columns. The

    Preparing the Schedule D is one of the best thing the Money program does for me.

    So how do I proceed ?  In Money 2006, 2006, 2007 and Plus (non-Sunset), click Taxes->TaxTools->ExportToTaxSoftware

    Using Money Plus Sunset, a similar method can be used.  First, configure in the TaxEstimator icon by clicking "Shortcuts..." near the top of your Money window.

    TaxEstimator->TaxTools->ExportToTaxSoftware

    Set the ReviewTaxesFor drop-down to Completed2011TaxYear. Continue.

    Select the items that you want Money to send to the tax program, and de-select those things that you will instead pull off of the 1099s.  For me, I choose only long- and short-term capital gains. I get the other info directly from the 1099s. I suggest you do the same.

    To pass information, click Continue.  This writeup is not written with the use of the on-line tax software in mind.  If you plan to use online tax software, read elsewhere about that.

    I recommend that you not use the options for TaxCut or TurboTax, but instead choose UseTaxSoftware, and "Export your tax information as a data file you can use with any tax software program". For Sunset, the words you want to click on are "Save your tax information as a data file (typically called a TXF file)".

    The example below, you saved the result as "Your.txf". Put all of the involved files into the same folder. I use a command window for commands later.

    The methods below show Turbotax commands (I expect a variation for other software), File->Import->FromAccountingSoftware->OtherFinancialSoftware(TXF)

    Open a command window and CD to the folder that contains your.txf as other files.

    Choose method 1 or method 2 below.

    METHOD 1

    Put txffix.py, downloadable at  http://www.mediafire.com/?y2nrdhkvbvrutqc , into the working folder.


    To change some codes and write the result to ModOut.txf, enter this command in your command window:

    txffix.py Your.txf

    In TurboTax, File->Import->FromAccountingSoftware->OtherFinancialSoftware(TXF)

    Select OtherFinancialSoftware(TXF)

    Click Continue

    Select ModOut (is ModOut.txf but the .txf is hidden)

    Click ImportNow and click ImportNow again.

    Click Done.

     At this point, I switch to Forms mode in TurboTax. I use Ctrl+2 to do that, but View->Forms also works. At the bottom of the Forms list in the left column is the "Imported 1099-B" form. Open that form. You are presented with the "Imported Broker Transactions Worksheet". You will see the  first transaction represented in the TXF file.

    Look at your paper 1099-div. Assuming you used txffix.py, note the Box 21b has been filled in for you with a best guess, but you need to check that the value matches the P (Provided) or N (Not provided) your paper. Box 21a has been filled in as Yes, but for items not printed on any of your 1099-B forms, you should change that Yes to no.

    Click the inner scroll-down arrow to switch to the same transaction. Check your TurboTax forms vs your paper 1099-B. Modify box 21a and box 21b if they are not in accord with the paper.  In particular note that a CIL (Cash In Lieu) may be marked as Not Provided on paper while marked as Provided by Method 1. Change any mismatches of the check boxes to match the paper. Looking at copy 1 and copy 2 of your form 8949 later will let you see the transactions grouped according to the line 21 choices.

    METHOD 2

    does not use the txffix.py file.

    In TT, File->Import->FromAccountingSoftware->OtherFinancialSoftware(TXF)

    Select OtherFinancialSoftware(TXF)

    Click Continue

    Select Your (is Your.txf but txf is hidden)

    Click ImportNow and click ImportNow again.

    Click Done.

     At this point, I switch to Forms mode in TurboTax. I use Ctrl+2 to do that, but View->Forms also works. At the bottom of the Forms list in the left column is the "Imported 1099-B" form. Open that form. You are presented with the "Imported Broker Transactions Worksheet". You will see the  first transaction represented in the TXF file.

    To change to each transaction in turn, click the inner scroll-down arrow to switch to the same transaction. Modify box 21a to No for each transaction where the broker entered Unknown for the basis. The inner scroll-up arrow goes back to the previous transaction.

    Look at your paper 1099-div. Assuming you used txffix.py, note the Box 21b has been filled in to indicate that Yes, the basis has been reported to the IRS. Change each transaction to No that the 1099B said that the transaction was not reported. Box 21a has been filled in as Yes, but for items marked unknown basis on the 1099B, you should change that Yes to no. Do this for each transaction.

    Click the inner scroll-down arrow to switch to the same transaction. Modify box 21a to No for each transaction where the broker entered Unknown for the basis.

    Check your TurboTax forms vs your paper 1099-B. Change any mismatches of the check boxes to match the paper. Looking at copy 1 and copy 2 of your 8949 forms later will let you see the transactions grouped according to the line 21a and 21b choices.

    Wednesday, 15 February, 2012 7:03 AM

All replies

  • Not sure what the python script does, but Method 1 doesn't work for HRBlock @ Home; just import the Money txf file directly.
    Wednesday, 15 February, 2012 5:10 PM
  • A little commentary....

    1. Method A and Method B are very TurboTax oriented. If somebody uses H&R Block, or some other tax software that accepts TFX files, please post a Method C or other comment.

    2. The new TFX codes are described in http://turbotax.intuit.com/txf/TXF042.jsp . The older codes that, Money always produces, have been redefined as N321 (Short Term+Provided to IRS) and N323 (Long  Term+Provided to IRS). Importing the TFX from Money directly marks all transactions as having the basis provided to the IRS by the broker. For my broker -- which I expect is typical-- only the basis of those transactions acquired in 2011 or later are Provided.  The function of tfxfix.py is to change the codes to N711 (Short  Term+Not provided to IRS) and N711 (Long  Term+Not provided to IRS) for all transactions with acquired dates before 2011. You have to check and modify any transactions where the 1099-B does not match this simple rule. On my 1099-B, each transaction has been marked N or P.

    3. tfxfix.py  has  the line 'IRS_year="2011"' at the top. If you changed this year to 1900, then all transactions would be modified to Not provide when you import to your tax program. Then you would modify those marked Provided on your 1099-B to be Provided in your tax program.  Tfxfix.py  always writes its output to 'ModOut.txf'. The file to be converted is passed on the command line. Maybe having both names fixed or both names as parameters would have been better. It would be an easy change.

    4. I had a CIL where the simple algorithm did not do the right thing. For whatever reason, that was marked as Not provided yet the acquisition date was marked 2011. That  Not Provided refers to the basis not being reported. The sale date and amount are reported. Now for any closing transactions that are not reported to the IRS at all, that is a different permutation. You have to mark those appropriately. I did not have any of these. I also did not have any shorts, and did not think through the implications of that.

    5. This all must seem intimidating. It is new to us all. These considerations must still be used by those who enter the Schedule D info into the tax program by hand. This will probably be a busier-than-usual year for tax preparers.

    Wednesday, 15 February, 2012 5:43 PM
  • Cal,

    For the record, you keep saying TFX file, but in actuality Money produces a TXF file.

    The @Home software imports directly into Form 8949 and seems to assume that no 1099-B is provided (third option in Form 8949) when importing, so when editing each item, you would have to check the "Reported on 1099-B" box if applicable.   Since my shares were from a DRIP plan, I was OK (as you so kindly pointed out to me on another forum).


    • Edited by ameridan Wednesday, 15 February, 2012 10:41 PM
    Wednesday, 15 February, 2012 6:24 PM
  • Cal,

    For the record, you keep saying TFX file, but in actuality Money produces a TXF file.

    The @Home software imports directly into Form 8949 and seems to assume that no 1099-B is provided (third option in Form 8949) when importing, so when editing each item, you would have to check the "Reported on 1099-B" box if applicable.   Since my shares were from a DRIP plan, I was OK (as so kindly pointed out to me on another forum).

    Thanks on the "txf" correction... I think I was used to typing "ofx" and messed up. I have done it before. I will be modifying including uploading a renamed *.py file.

    On form 8949, there are three check boxes in the short term section:
    (A) Short-term transactions reported on Form 1099-B with basis reported to the IRS
    (B) Short-term transactions reported on Form 1099-B but basis not reported to the IRS
    (C) Short-term transactions for which you cannot check box A or B

    You must check one box only. You may need 2 or 3 copies of form 8949 if more than one category of short term sales occurred. The same thing appears in the long term section.

    If you just import the TXF file from Money, everything will go onto a single 8949 with box (A) ticked in both long and short term sections.

    On my paper 1099-B here is my current interpretation:
    (A) transactions are marked P. This is only where the Buy was in 2011 in my case.
    (B) transactions are marked N but with a basis amount or "unknown" printed.
    (C) "gains and losses for which you did not receive a Form 1099-B"

    The wording for (C) is from http://www.irs.gov/pub/irs-dft/i1040sd--dft.pdf page D-7 column 3 for short term, and page D-8 column 1 for long term. That section also explains (A) and (B).

    That is my current understanding. It is subject to revision.

    So I think that if your 1099-B reports a proceeds value in the "Sales Price of Stocks, Bonds etc. (2)" column, the value is unknown or not provided to the IRS in the "Cost or Other Basis (3)  Provided to IRS/ Not Provided (6)" then box (B) should be ticked on the 8949 section. I have a feeling that if box (B) should have been ticked but box (C) should have been ticked, that may well be ignored as harmless.

    I suspect there is some provision in H&R Block software to handle this. If you have all of one kind, then I guess you could just tick the 8949 boxes manually. But if there is not a provision to generate separate copies of 8949 for (A/B/C) now, I would anticipate a software update.

    Thanks for the info.

    Wednesday, 15 February, 2012 7:06 PM
  • US Capital Gains information for 2011 and later for TurboTax import from TXF file
    Form 8949 Information on 1099-B from broker TT Imported 1099-B TXF N code
    code Meaning of transaction box (6) Line 20a Line 20b Short Term Long Term
    A Basis+ Proceeds Provided to IRS 6b/P (Provided) Yes Yes N321 N323
    B Proceeds on a 1099 B 6a/N (Not prov.) Yes No N711 N713
    C Neither is on a 1099-B not applicable No NA N712 N714

    1. Money always uses code N321 or N323; you can adjust line 20 manually in TT
    2. IRS instructions for broker: http://www.irs.gov/pub/irs-pdf/i1099b.pdf
    3. If your 1099B has box 6a and 6b, N in table = box 6a; P = box 6b; Fidelity uses N and P
    4. Schwab has box 6 blank for Provided to the IRS(Covered) and shows X for Not provided (Non-covered)
    5. TD Ameritrade and USAA put transactions into separate tables depending on the form 8949 code checkbox to be used

    Thursday, 16 February, 2012 10:45 PM
  • Perfect timing Cal!

    Today I got a 1099-B for my DRIP shares and I see N323 for each entry in the txf file.  So using an editor, I am going to change those to N713 and reimport the file so that Form 8949 will have B checked rather than C. 

    UPDATE:  Well don't try that as @Home doesn't know what to do with N713 ("No valid 2011 data" - same error I got when trying your python output file) when importing the file.  Instead you have to edit each imported item, click on "Reported on 1099-B", and then click "Next" to screen "1099-B Boxes 3 & 8" (in my case I leave them both unchecked) an then they get assigned to the appropriate Form 8949.

    Very tedious, but everything is kosher now.

    I suspect there is some provision in H&R Block software to handle this. If you have all of one kind, then I guess you could just tick the 8949 boxes manually. But if there is not a provision to generate separate copies of 8949 for (A/B/C) now, I would anticipate a software update.

    You were correct - the screen "1099-B Boxes 3 & 8" handles the A & B options in Form 8949.

    Dan








    • Edited by ameridan Friday, 17 February, 2012 12:07 AM
    Thursday, 16 February, 2012 11:14 PM