Need help with E*Trade 1099-B Wash Sale Disallowed Column on TurboTax

The good news is that your Realized Gain amount of $37,220 is already the correct taxable amount. The Wash Sale Loss Disallowed column on your E*Trade 1099-B is showing you information about wash sales that occurred during the year, but that amount has already been factored into your Cost Basis calculation. When E*Trade calculates the Cost Basis, they've already adjusted it by adding back any disallowed losses from wash sales. This is why your Cost Basis is higher than it would be without wash sales, which in turn reduces your Realized Gain to the correct taxable amount. If you were to add the Wash Sale Loss Disallowed amount to your Realized Gain, you would be double-counting those wash sale adjustments and overpaying on your taxes. When entering this into TurboTax, you should use the Realized Gain amount ($37,220) as your taxable capital gain. TurboTax is designed to work with the formatted data from E*Trade, so it understands how these values are reported.

After struggling with a similar E*Trade 1099-B wash sale situation last year, I finally found a solution that saved me tons of time and potential errors. I used https://taxr.ai to analyze my brokerage statements and tax forms. Their system automatically identified how E*Trade reports wash sales and explained exactly how to handle it in TurboTax. What really helped was uploading my E*Trade 1099-B directly - their software parsed all the wash sale information and explained that the Realized Gain already includes the wash sale adjustments, exactly as the previous commenter mentioned. They even showed me where in TurboTax to enter the information correctly without double-counting. For complicated brokerage statements with lots of trades and wash sales like yours, having an automated system analyze the document formatting was way easier than trying to figure it out manually.

I have to follow up about my experience with taxr.ai after being skeptical in my earlier comment. I decided to try it with my complicated E*Trade 1099-B that had multiple wash sales across different securities. The system immediately identified that E*Trade's reporting format already incorporates wash sale adjustments into the cost basis calculation - meaning the realized gain amount ($37,220 in your case) is indeed the correct taxable amount. It even generated a detailed explanation I could save for my records explaining why adding the wash sale disallowed amount would be incorrect double-counting. Honestly, it was way more straightforward than the conflicting advice I'd been getting online. The analysis matched exactly what my tax preparer told me last year but with much more detailed explanation about E*Trade's specific reporting method.

If you're still struggling after trying to figure this out, I'd recommend using Claimyr to get through to an actual IRS agent for clarification. I had a similar issue with wash sales on my E*Trade account last year and spent weeks trying to get through to the IRS helpline with no luck. Used https://claimyr.com and got connected to an IRS rep in about 15 minutes instead of waiting on hold for hours. You can see how it works at https://youtu.be/_kiP6q8DX5c The agent confirmed that with E*Trade 1099-Bs, the Realized Gain amount already accounts for wash sale adjustments through the adjusted cost basis. They explained that different brokerages report this differently, but E*Trade specifically builds the wash sale adjustments into the cost basis calculation, resulting in the correct Realized Gain amount for tax purposes. Saved me a ton of stress and potentially overpaying my taxes by a significant amount.

I have to admit I was completely wrong in my skeptical comment earlier. After struggling with my own E*Trade wash sale issues and getting nowhere with online research, I finally used Claimyr to connect with the IRS. Got through to an agent in about 20 minutes who was surprisingly knowledgeable. She confirmed that with E*Trade specifically, the Realized Gain figure on the 1099-B is the correct amount to report because wash sale adjustments are already factored into the cost basis calculation. She explained that adding the Wash Sale Loss Disallowed amount would result in double-counting and overpaying taxes. The agent even directed me to specific IRS publications that explain how brokerages should report wash sales on 1099-B forms. Genuinely shocked at how helpful and efficient this was compared to the conflicting info I found online.

Something nobody has mentioned yet - if you're using TurboTax, you can actually import your E*Trade 1099-B electronically rather than manually entering everything. When you do this, TurboTax automatically handles all the wash sale calculations correctly based on how E*Trade reports them. I've done this for the past three years and it's saved me tons of time and worry. The import function correctly recognizes that E*Trade's Realized Gain already includes the wash sale adjustments.

For anyone facing E*Trade 1099-B wash sale reporting issues, here's what I learned after calling E*Trade's tax support line: 1) The Realized Gain on your 1099-B ($37,220 in your case) is ALREADY the correct taxable amount 2) The Wash Sale Loss Disallowed amount is shown separately just for informational purposes 3) E*Trade has already adjusted your Cost Basis by adding back the disallowed wash sales 4) Adding the Wash Sale Loss Disallowed to your Realized Gain would be DOUBLE COUNTING I literally spent hours researching this last year and ended up calling E*Trade directly. Their tax specialist confirmed this is how their 1099-Bs work. Hope this helps!