Received 1099-B from Robinhood 10 days after filing taxes - what now?

So just to be clear, the "proceeds" number isn't what the IRS thinks I made in profit? That's my biggest fear. And how do I handle the wash sale amount? Does that get added back to my cost basis or something? This is all confusing to me as a first-time trader.

The "proceeds" is just the total amount you received from selling stocks - it's not profit. The IRS calculates your gain/loss by subtracting your cost basis from your proceeds, just like you did to get that $943 loss. For wash sales, it means you sold securities at a loss and bought substantially identical securities within 30 days before or after the sale. The disallowed amount isn't taxable income - it's added to the cost basis of the replacement securities. Your tax software should handle this calculation when you input all the details from your 1099-B. The most important thing is to file that amended return so everything matches what the IRS has on file from Robinhood.

How exactly does that work? Do I need to upload my original return plus the new 1099-B? I'm not super comfortable sharing my tax docs with random websites.

Did it actually catch everything correctly? I have a similar situation with multiple brokers and I'm worried about missing something. Those wash sale calculations are so confusing.

You upload both your already-filed return and the new 1099-B, and it compares them to identify exactly what changed and needs amending. They use bank-level encryption so it's secure. It caught everything perfectly in my case. I had transactions across three different platforms and was especially concerned about the wash sale calculations since I had been trading the same stocks across different accounts. The system flagged all the discrepancies and showed me exactly what needed to be reported on my amended return.

Thanks for explaining this. So even though Robinhood already reported it to the IRS, I still need to file an amended return? How long do I have to do this? And will I get in trouble for filing without this information initially?

Yes, you should file an amended return even though Robinhood reported it. The IRS expects you to report all your income and losses, regardless of what third parties report. You generally have up to three years from the original filing date to amend your return. You won't get in trouble for this kind of honest mistake, especially since you're proactively correcting it. The IRS deals with these situations all the time. Since you're showing a loss rather than unreported income, they're not likely to be concerned. Just file Form 1040-X with the corrected information as soon as you can.

Wait how does this even work? The IRS phone lines are impossible to get through. Is this legit or some kind of scam?

Sounds too good to be true. I've literally spent DAYS trying to talk to someone at the IRS. I find it hard to believe some service can magically get you through when millions of people can't get past the automated system.

It works by using an automated system that navigates the IRS phone tree and waits on hold for you. Once they reach a human, you get a call back to connect with the agent. It's completely legitimate. I was skeptical too, but it works exactly as advertised. The service navigates all those annoying prompts and holds your place in line. When they finally reach a human (which took about 15 minutes in my case), you get a call connecting you directly to the agent. Saved me literally hours of frustration after my previous attempts of waiting on hold for 2+ hours only to get disconnected.

How does it work with amended returns? I'm in a similar situation but with Webull instead of Robinhood. Do they just tell you what to do or actually help with the amendment process?

Sounds like a paid service... is it expensive? I've got a similar situation but with a much smaller amount (only about $2k in trades) and wondering if it's worth it or if I should just try to figure it out myself.

It works seamlessly with amended returns. You upload your 1099-B and previous tax return, and they analyze everything to produce the correct information for your amendment. They don't file for you, but they give you all the calculations and forms you need to file yourself or hand to your tax preparer. For smaller trading accounts, they're actually very reasonable. I think they have different tiers based on transaction volume. For $2k in trades, it would probably be their lowest tier. Honestly, I found it worth every penny just for the peace of mind and time saved, especially if you're not familiar with wash sale rules and capital loss calculations.

So if the wash sale disallowed is $29,295 out of a total loss of around $30,000, does that mean they can only claim about $700 in losses this year? And the rest is just... gone?

You've got it partly right. If the total loss was about $30,000 and the wash sale disallowed amount is $29,295, then yes, they can only claim about $700 in losses this year on their tax return. But the $29,295 isn't gone forever! That amount gets added to the cost basis of the replacement shares they purchased. So when they eventually sell those replacement shares (assuming no more wash sales), they'll have a higher cost basis, which means either less taxable gain or more deductible loss on that future sale. It's basically just deferring the loss to a future tax year, not eliminating it completely.

Wait, how does this actually work? Do they just call the IRS for you or something? Sounds sketchy tbh.

I don't believe this for a second. Nothing can get you through to the IRS faster. They're absolutely swamped during tax season and no "service" can magically put you ahead in line. Sounds like a scam to me.

They don't call the IRS for you - that would indeed be sketchy. They use an automated system that dials into the IRS and navigates the phone tree, then holds your place in line. When their system detects an agent is about to pick up, they call you and connect you directly to that agent. You're still the one talking to the IRS. I understand the skepticism - I felt the same way initially. But it's not about cutting in line, it's about not having to physically sit by your phone for hours. The technology just monitors the hold music and can tell when a human picks up. It's basically like having someone else sit on hold for you while you go about your day.

What tax software do you recommend for someone with trades? I used TurboTax but now I need to amend and I'm wondering if there's something better for handling these stock situations.

Can you still claim the capital loss deduction if it was from wash sales though? I thought those were disallowed?

Good question about wash sales. The wash sale rule disallows the loss specifically on transactions where you buy back the same or substantially identical security within 30 days before or after selling at a loss. However, that disallowed loss gets added to the cost basis of your replacement shares. Looking at the original post, they still had a net capital loss of $870 AFTER accounting for wash sales. The wash sale amount ($27,125) was already factored into their calculations. So they can still claim that $870 loss against their income. If they hadn't repurchased those shares, their loss would have been much larger!

Yes! I ignored a 1099-B with losses last year thinking "why bother if I'm not owing more?" Got a CP2000 about 4 months later. The IRS computer only sees "unreported income" from the proceeds, not the net result. Had to respond with a complete Schedule D showing the loss calculation. Major headache that could have been avoided by just amending right away.