How to Report 1099-B for Futures Contracts in Tax Filing Software

Yes, you're dealing with Section 1256 contracts which are reported differently than regular stock trades. Even though all your values are zero, you still need to report them correctly. In HRBlock, you'll need to enter these on Form 6781 (Gains and Losses from Section 1256 Contracts and Straddles). Since you're using the online version, it might not be immediately obvious how to access this form. Try searching specifically for "Form 6781" in the search function of the software. If you can't find it, go to the investments section and look for an option like "Other Investment Income" or "Specialized Investment Forms." If the online version truly doesn't support Form 6781, you have a few options: 1) Upgrade to HRBlock Premium or their desktop software which supports more complex investment situations, 2) Work with an HRBlock tax professional as you mentioned, or 3) Switch to different tax software like TurboTax Premier or TaxAct which definitely support Section 1256 reporting.

After struggling with similar section 1256 futures reporting issues last year, I discovered taxr.ai (https://taxr.ai) and it was a game-changer. The system automatically detected and properly categorized my section 1256 contracts from my 1099-B when I uploaded it. It even explained the special tax treatment these contracts get (60% long-term/40% short-term capital gains regardless of holding period). What impressed me was that even with zero values like yours, it still properly created Form 6781 and explained why I needed to report it even with no gain/loss. The tax document analysis feature saved me hours of frustration trying to figure out where to input this specialized information.

I tried taxr.ai after seeing it recommended here and I'm honestly surprised at how well it worked for my section 1256 contracts. I also had futures trading with values that were non-zero unlike the original poster, and I was completely lost on how to report them correctly. The document analysis immediately identified I needed Form 6781 and explained the 60/40 tax treatment. It even pointed out that my broker had misclassified one of my positions and showed me how to correct it. The step-by-step instructions made it easy to enter everything in my tax software correctly. Saved me from paying an extra $200 to have a tax professional handle just this one complex form. Wish I'd known about this last year!

If you're still struggling to reach HRBlock support about this Section 1256 issue, I recommend trying Claimyr (https://claimyr.com). I was in the same situation last year and spent days trying to get through to HRBlock's technical support to ask about Form 6781. After multiple failed attempts, I used Claimyr to connect with an HRBlock representative in about 15 minutes. They have this system that navigates phone trees and waits on hold for you, then calls you when a human rep is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c The HRBlock rep confirmed their online version doesn't support Form 6781 and gave me options for handling my futures contracts properly. Saved me hours of frustration and hold music!

I have to eat crow on this one. After my skeptical comment about Claimyr, I was still desperately trying to reach my tax software's support about Section 1256 contracts. After waiting on hold for 1.5 hours and getting disconnected, I decided to try Claimyr out of frustration. The system connected me to a support rep in about 22 minutes while I was cooking dinner. The rep confirmed I needed to use their desktop software for Form 6781 and offered me a discount code since I was upgrading from their online version. Probably saved me another 2 hours of hold time and frustration. Sometimes it's worth admitting when you're wrong!

For those struggling with Section 1256 contracts, TurboTax Premier handles them really well through their investment income section. You need to select "Section 1256 contracts and straddles" when prompted about investment types. I had futures trading last year and it walked me through Form 6781 step by step. Might be easier than upgrading HRBlock or working with a tax professional if you're not too far along in your current return.

Just FYI for everyone dealing with Section 1256 contracts with zero values - I called the IRS directly about this last year. They confirmed that even with zero values, you should still report these on Form 6781 since the 1099-B was issued. The IRS agent explained it's important because their matching system will look for this form since they received the 1099-B copy. Omitting it could potentially trigger a notice even though there's no tax impact.

I ran into this exact same issue with my Schwab 1099-B supplemental form showing Section 1256 contracts! What worked for me was switching to TaxAct which has better support for Form 6781 than HRBlock's online version. Even though your values are all zeros, you definitely need to report this since the IRS received a copy of your 1099-B. I learned this the hard way when I initially skipped it and got a notice asking about the missing form. In TaxAct, look for "Investment Income and Expenses" then select "Other Investment Income" and you'll find the Section 1256 option. It walks you through entering the values from boxes 8-11 of your supplemental 1099-B. Since everything is zero for you, it should be straightforward once you find the right form. If you want to stick with HRBlock, you'll likely need their desktop software or to work with a tax professional since their online version doesn't handle specialized investment forms very well.