How to File 1099 Forms for Stock Trading - Clarification on Composite 1099s from MooMoo Financial

Thanks for explaining! I'm using TurboTax this year - will it have a specific section for uploading these consolidated 1099s or do I still need to manually type in all the individual trade information? I made like 50+ trades last year and really don't want to enter each one separately...

Most tax software like TurboTax has an import feature where you can directly import your 1099 information from major brokerages. Check if TradeWave is supported for direct import - this can save you from manually entering each transaction. If direct import isn't available, you may need to enter the summary information, but not necessarily every single trade. TurboTax will typically ask for the summary amounts from each section of your consolidated 1099, and in some cases, you can attach a PDF of your detailed statement instead of entering every transaction. The software will guide you through which specific lines and totals you need to enter.

Does it work with all brokerages or just the major ones? I use a smaller platform called InvestEasy and wondering if it would recognize their format.

How does the export actually work? Does it create a file you import into TurboTax or does it just tell you the final numbers to type in? I'm trying to understand if this actually saves time for someone with 100+ trades.

It works with practically all brokerages, including smaller ones. I've used it with statements from Robinhood, Fidelity, and even a smaller platform similar to InvestEasy. Their system can handle different formats because it's analyzing the document structure rather than just looking for specific templates. For the export functionality, it creates a file that's compatible with most major tax software including TurboTax, H&R Block, and TaxAct. You don't just get summary numbers - it creates a proper import file with all your individual transactions properly categorized. This is especially valuable if you have 100+ trades because you avoid manually entering each one, which would take forever and increase the chance of making errors.

Wait, how does this actually work? Do they just sit on hold for you? I'm confused how a third party service can get through to the IRS faster than I can directly.

This sounds like BS honestly. How would some random service get priority access to IRS agents when everyone else waits for hours? Seems like they're just charging people for something anyone could do themselves for free.

They don't have special access or priority lines - they use technology to navigate the complex IRS phone system and wait on hold so you don't have to. Basically, their system calls the IRS, works through all the automated menus, waits on hold (which can be hours during peak times), and then calls you once they have an actual human IRS agent on the line. I was skeptical too at first. The difference is they have systems that can stay on hold indefinitely and try different call routing options that might work better at certain times of day. It's not about cutting in line - it's about automating the frustrating parts of the process. I spent literal days trying to get through on my own during tax season before giving up and trying their service.

How do you know if something is "noncovered"? Is it labeled clearly on the 1099 or do I need to look for specific codes? I transferred some positions from ETrade to TradeWave last year and wondering if this might affect me.

Yes, it should be clearly labeled on your consolidated 1099. Look for a section or column labeled "covered/noncovered" or sometimes just "covered" with a Yes/No indicator. For securities transferred between brokers, there's a good chance some might be marked as noncovered, especially if they were purchased before 2011 for stocks or 2014 for mutual funds. If you find noncovered securities, you'll need to determine the cost basis yourself using your own records. The information won't be reported to the IRS by your broker, but you still need to report it accurately on your return. Keep documentation of how you determined the cost basis in case of an audit.

FreeTaxUSA works fine for consolidated 1099s but theres no automatic import like TurboTax has. You'll need to enter summary info manually but not every trade. They have specific sections for capital gains, dividends, interest etc. Just look at the totals on each section of your Webull 1099 and enter them in the right place. Way cheaper than TurboTax and gets the job done!

This is super helpful advice! I actually didn't think about the possibility of needing multiple statements if I had accounts elsewhere. I did have a small Robinhood account that I closed mid-year before switching everything to TradeWave - do you know if I need to get a separate 1099 from Robinhood for those transactions, or would TradeWave have included everything when they processed my account transfer? Also, when you mention supplemental/corrected 1099s, what kinds of things typically get corrected? Just want to make sure I'm not filing too early if there might be updates coming.

Great question about the Robinhood situation! You'll definitely need a separate 1099 from Robinhood for any transactions that occurred before you transferred your account. When you transfer positions between brokers, the receiving broker (TradeWave) only gets the current holdings - they don't get historical transaction data for trades that happened at the previous broker. So if you sold any stocks, received dividends, or had other taxable events at Robinhood before the transfer, those should appear on a separate Robinhood 1099. The TradeWave 1099 would only show activity that happened after the transfer, plus any gains/losses when you eventually sell the transferred positions (using the cost basis from when you originally bought them at Robinhood). As for corrections, common things that get updated include: incorrect cost basis calculations, missing dividend payments that were processed late, or adjustments to corporate actions like stock splits. Some brokers also issue corrections if they discover wash sale calculations were wrong. I usually wait until mid-February before filing just to be safe, but you can always file an amended return if corrections come in later.