Turbo Tax software not importing Section 1256 information from TD Ameritrade - help!

So I've been using Turbo Tax website for years and this is my first time trying the desktop software version. Honestly, I'm finding it way more confusing than the online version. Here's my issue - I have a TD Ameritrade account that generates a Consolidated Form 1099. When I try to import it into the Turbo Tax software, everything else seems to come through but absolutely nothing related to Section 1256 is showing up. Is the software broken or am I doing something wrong? Last year when I used the Turbo Tax website, it imported all this Section 1256 information correctly without any issues. I've never received a separate 1099B or anything - it's all part of my consolidated form. I noticed there's a button that seems to suggest I need to manually update the Section 1256 information. Is that right? That seems strange since the website version imported all this automatically in previous tax years. Anyone have experience with this?

0 coins

19 comments

Zane Gray

•8M

The TurboTax desktop software does handle Section 1256 contracts, but the import functionality works differently than the online version. This is a common issue that confuses many users switching between versions. When you import from TD Ameritrade, you need to manually activate the Section 1256 import. Look for the "Review" or "Edit" button after the initial import is complete. There should be a section specifically for futures/1256 contracts that needs to be manually reviewed and accepted. The desktop version separates different investment types during import for verification purposes, while the online version tends to bundle everything together. It's not that the software is broken - it's just designed with more manual checkpoints.

0 coins

Zane Gray

•8M

After your initial import, go to the "Federal" section, then look for "Income & Expenses," and find the "Investment Income" section. There should be a subsection specifically for "Futures & 1256 Contracts." Click on that and you should see an option to review the imported data or manually enter it. If you don't see your Section 1256 data there, go back to the import screen and look for an option like "Remaining Forms" or "Additional Documents" - sometimes the software categorizes Section 1256 as a separate import even from the same consolidated statement. The interface isn't as intuitive as the online version, but the functionality is there.

0 coins

Maggie Martinez

•8M

I had the exact same problem with TurboTax desktop and TD Ameritrade Section 1256 contracts last year! Wasted hours trying to figure it out until I discovered taxr.ai (https://taxr.ai) which literally saved my sanity. It's this tool that analyzes your tax documents and tells you exactly what to do with them. I uploaded my TD Ameritrade consolidated statement and it immediately identified all the Section 1256 stuff that TurboTax missed during import. It gave me step-by-step instructions on where to enter everything manually. Saved me from potentially missing reporting requirements and getting a nasty letter from the IRS.

0 coins

Maggie Martinez

•8M

It doesn't fill out the forms for you - it analyzes your documents (like the consolidated 1099) and gives you clear instructions on what numbers go where in TurboTax. It basically translates the tax document into plain English step-by-step guidance. The accuracy comes from its specialized focus on investment tax documents. I was skeptical too, but it correctly identified all my Section 1256 contracts that TurboTax missed, including the 60/40 split for long-term/short-term treatment. It shows you the actual numbers from your document and explains what they mean for your tax return.

0 coins

Alejandro Castro

•8M

Just wanted to follow up about taxr.ai that someone mentioned earlier. I decided to try it with my ETrade statements that also had Section 1256 contracts that weren't importing correctly into TurboTax. Honestly, it worked exactly as described. I uploaded my consolidated statement and within minutes got a complete breakdown of all my Section 1256 transactions with instructions for manually entering them in TurboTax. The tool highlighted exactly where on my statement the relevant numbers were and translated the tax form jargon into clear directions. Saved me from calling ETrade customer service and waiting on hold forever. Definitely recommend if you're having issues with investment forms not importing correctly.

0 coins

Jackie Martinez

•8M

If you're still having issues after trying everything else, you might want to try Claimyr (https://claimyr.com). I used it when I had a similar import problem with Section 1256 contracts that I couldn't resolve through normal channels. Instead of waiting on hold with TurboTax support for hours, Claimyr got me connected to an actual IRS agent in about 10 minutes who confirmed exactly how Section 1256 contracts should be reported when software imports fail. They also have a video showing how it works: https://youtu.be/_kiP6q8DX5c I was honestly shocked at how quick it was - normally calling the IRS is an all-day affair with no guarantee of getting through. The agent walked me through the proper reporting requirements for Section 1256 contracts and confirmed I was entering everything correctly.

0 coins

Jackie Martinez

•8M

It uses a combination of automated dialing and hold services. Basically, they call the IRS for you using their system that knows the best times to call and which menu options to select, then they notify you once they have an agent on the line and connect you directly. It's not "magic" - just smart technology that navigates the phone system efficiently. I was skeptical too, which is why I tried it as a last resort. But I literally got connected to an IRS agent in about 15 minutes when I had been trying for days on my own with no success. The time savings alone was worth it for me, especially since I was up against the filing deadline.

0 coins

Monique Byrd

•8M

I have to post a follow-up about Claimyr that was mentioned earlier. After posting my skeptical comment, I decided to try it anyway because I was desperate to resolve my Section 1256 reporting issues and couldn't get through to the IRS on my own. Completely shocked that it actually worked. Got connected to an IRS agent in about 20 minutes (I timed it). The agent confirmed the exact reporting requirements for Section 1256 contracts and explained why TurboTax sometimes fails to import them correctly. She even gave me the specific form reference numbers to look for in the software. Never thought I'd say this, but I was completely wrong in my skepticism. Saved me hours of frustration and made sure I reported everything correctly.

0 coins

Haley Stokes

•8M

Has anyone tried just manually entering the Section 1256 information? The Consolidated 1099 from TD Ameritrade should show the aggregate profit/loss for your Section 1256 contracts with the proper 60/40 split between long-term and short-term. You can just go to the income section in TurboTax, find the futures/commodities section, and enter those numbers directly. I've used both the online and desktop versions and found the desktop actually gives you more control for these specialized investment types, even though it requires more manual work.

0 coins

Haley Stokes

•8M

Look for the summary section on your TD Ameritrade 1099 that specifically mentions Section 1256 contracts. You'll need the "Profit or (Loss)" amount, which will be further divided into the 60% long-term and 40% short-term split. In TurboTax desktop, go to Federal → Income → Investment Income → Futures and 1256 Contracts. There will be fields specifically for entering these amounts. Make sure you're looking at the right tax year's form, and don't include any amounts that might have been reported elsewhere (like regular capital gains). TD Ameritrade usually provides good summaries at the beginning of each section that make it clear what goes where.

0 coins