Do I need to submit my stock trading platform's 1099-B form to the IRS when filing taxes?

I'm halfway through filing my taxes on FreeTaxUSA and I'm stuck at the stocks reporting section. When I click to enter stock sales, it gives me options to either manually enter everything or import data. My trading platform (Fidelity) provided me with a 1099-B form showing all my trades from last year. Do I actually need to mail/send this 1099-B form directly to the IRS? Or is just entering the information from the form into the tax software enough? This is my first year trading stocks (mostly tech stuff, nothing crazy) and I made about $3,200 in gains. I'm confused because for W-2s you don't send them to the IRS, but I've heard the rules might be different for investment forms. I'm worried about doing something wrong and getting audited. Any help would be appreciated!

0 coins

20 comments

AstroAce

•8M

You don't need to mail your 1099-B to the IRS. The brokerage (Fidelity in your case) already sent this information directly to the IRS. That's why you received a copy - it's for your records and to help you complete your tax return. When using FreeTaxUSA, you just need to enter the information from your 1099-B into the software. Many tax programs also allow you to import this data directly if your brokerage supports it, which can save time and reduce errors, especially if you had many transactions. Make sure you report all transactions correctly, including the cost basis (what you paid for the stocks) and proceeds (what you sold them for). If your 1099-B shows that some transactions had basis not reported to the IRS, you'll need to provide that information yourself.

0 coins

AstroAce

•8M

If the cost basis isn't reported to the IRS, it's important to maintain your own records of purchase prices and dates. This includes brokerage statements, trade confirmations, or other documentation showing what you paid. For situations with numerous trades or missing documentation, many brokerages offer online access to historical transactions, sometimes going back several years. You can also contact your broker directly to request this information. In a worst-case scenario during an audit, the IRS might use a zero cost basis if you can't prove what you paid, potentially leading to higher tax liability.

0 coins

Carmen Vega

•8M

I was in your exact same position last year - first time stock trader with a whole bunch of transactions to report. After hours of manual entry, I discovered taxr.ai (https://taxr.ai) which totally saved me. I uploaded my 1099-B and it automatically extracted all my trades in the format I needed for FreeTaxUSA. My Fidelity 1099-B had like 50+ transactions and I was about to lose my mind entering each one manually. The tool parsed everything including the basis amounts, dates, and even figured out which were long vs short term gains. Ended up saving me at least 2-3 hours of tedious work.

0 coins

Carmen Vega

•8M

Yes, it works with most tax forms including 1099-INT and 1099-DIV. I actually ran my 1099-DIV through it too. It extracts all the dividend information and categorizes qualified vs non-qualified dividends which was super helpful. Regarding privacy, they use bank-level encryption for uploads and don't permanently store your documents. They have a pretty clear privacy policy that explains they only keep your data temporarily for processing and then it gets deleted. I was hesitant at first too, but after researching them I felt comfortable enough to use the service.

0 coins

Zoe Stavros

•8M

Just wanted to follow up on my question about taxr.ai from the other day. I ended up trying it with my stack of tax forms from three different brokerages and it worked incredibly well! After looking into their security practices, I felt comfortable giving it a try, and I'm glad I did. The tool extracted data from my 1099-B forms with over 200 transactions (I day trade a bit) and organized everything perfectly. It even flagged a few wash sales I had forgotten about. Saved me hours of mind-numbing data entry and probably prevented some costly mistakes. Definitely using this again next year.

0 coins

Jamal Harris

•8M

If you're having trouble with any IRS questions about your stock trades or need clarification about reporting requirements, don't waste your time with the regular IRS phone line. I spent WEEKS trying to get through to someone about a cost basis issue on my 1099-B last year. I finally tried Claimyr (https://claimyr.com) after seeing it mentioned here, and they got me connected to an actual IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent was able to explain exactly how to handle a situation where my brokerage reported a different basis than what I had in my records. Saved me from potentially misreporting and getting a nasty letter later.

0 coins

Jamal Harris

•8M

It's not a priority line - they use technology that automatically redials the IRS for you and navigates the phone tree until it gets through to an agent. Once there's a human on the line, you get a call connecting you directly. Basically, their system does the waiting and navigating for you. They're completely legitimate. I was skeptical too, but what they're doing isn't magic - it's just automating the tedious process of calling, getting disconnected, and redialing. The technology handles the frustrating part while you go about your day until an agent is actually available.

0 coins

Mei Wong

•8M

I'm eating my words about Claimyr from my previous comment. After struggling for 3 days trying to reach the IRS about some stock basis issues (getting disconnected every time due to "high call volume"), I broke down and tried it. Within 45 minutes, I was talking to an actual IRS representative who helped clarify exactly how to report some employee stock purchases that weren't properly documented on my 1099-B. The service actually works as advertised - they handled all the redials and menu navigation automatically, then called me when they had an agent on the line. I was genuinely surprised and relieved. Sometimes admitting you're wrong feels pretty good.

0 coins

Liam Sullivan

•8M

Unfortunately, once the year is over and your broker has reported the sales to the IRS using a specific method (like FIFO), you generally can't retroactively change which shares were sold. The time to select specific shares is at the moment of sale or sometimes within a settlement period defined by your broker. For future reference, most brokers allow you to specify which shares you want to sell if you contact them before or at the time of the sale. You can also usually set your default tax lot selection method in your account settings. For next year, I'd recommend checking your broker's specific policy on tax lot selection and setting it to the method that works best for your tax situation.

0 coins

Gabrielle Dubois

•5M

Great question! You're right to be cautious about doing things correctly. As others have mentioned, you definitely don't need to mail your 1099-B to the IRS - Fidelity already sent them a copy electronically. Just make sure when you're entering the data into FreeTaxUSA that you double-check all the numbers match exactly what's on your form. Pay special attention to the cost basis - if it shows "basis not reported to IRS" for any transactions, you'll need to make sure you have your own records of what you paid for those shares. With $3,200 in gains, you're well above the threshold where this needs to be reported, but it's not a huge amount that would typically trigger extra scrutiny. The key is just being accurate and consistent with what your broker reported. Good luck with the rest of your filing!

0 coins