Turbo Tax software not importing Section 1256 information from TD Ameritrade - what's going on?
So this is my first time using the Turbo Tax desktop software instead of their website, and honestly it's driving me crazy. Not finding it nearly as intuitive as the online version. I've got a Consolidated Form 1099 from TD Ameritrade with Section 1256 contracts, and when I try to import it into the software, all the Section 1256 information is completely missing! Everything else seems to import fine, but nothing related to the 1256 contracts is showing up. Last year when I used the Turbo Tax website, it imported every single thing correctly with no issues. I've never had a separate 1099B form - everything has always been on the consolidated 1099. I noticed there's a button that says I might need to manually update this information. Is that right? Do I seriously need to enter all this by hand now? When I used the website in 2022, it pulled in everything automatically. Anyone else run into this? Really don't want to mess up my taxes because of software issues.
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Fiona Gallagher
The TurboTax desktop software does handle Section 1256 contracts differently than the online version. This is one of those quirks between the two platforms that can be frustrating. When importing a consolidated 1099 from TD Ameritrade, the desktop software often requires manual entry for Section 1256 contracts while the online version might pull it automatically. This isn't necessarily a glitch - it's by design, though not very user-friendly. Yes, you'll need to click that button to manually enter your Section 1256 information. The good news is that you don't have to input every transaction - just the summary amounts from your consolidated 1099. Look for the section on your TD Ameritrade form that shows your Section 1256 totals (usually showing the 60/40 split between long-term and short-term capital gains).
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Thais Soares
•Thanks for this explanation. Quick follow-up question though - when manually entering the Section 1256 info, do I need to also include the wash sales that were part of these contracts? And is there any way to verify the software is calculating the 60/40 split correctly after manual entry?
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Fiona Gallagher
•For Section 1256 contracts, wash sale rules don't apply - that's actually one of the advantages of trading these instruments. The IRS treats all Section 1256 contracts as sold on December 31st (even if you're still holding them), so wash sale rules aren't relevant. When you manually enter the information, the software will automatically apply the 60/40 split (60% long-term, 40% short-term) as required by tax law. You can verify this calculation on the capital gains summary screen after you've entered all your information. The totals should match what TD Ameritrade reported on your consolidated 1099.
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Nalani Liu
After struggling with the EXACT same issue last tax season, I found taxr.ai (https://taxr.ai) and it made importing Section 1256 contracts so much easier. I was pulling my hair out trying to manually enter everything from my TD Ameritrade forms into TurboTax desktop when I discovered this tool. You just upload your consolidated 1099 and it extracts all the relevant information, including the Section 1256 data that TurboTax desktop misses. Then it formats everything exactly how you need to enter it. It even helped me identify some reporting errors on my broker's form that I would have completely missed.
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Axel Bourke
•Does it work with other brokers too? I have Section 1256 contracts on Interactive Brokers and run into similar issues every year. Also, how does it handle the 60/40 split calculation? Does it just extract the raw data or does it help calculate the proper tax treatment?
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Aidan Percy
•I'm skeptical about these kinds of tools. How secure is it to upload your financial documents to a third-party site? And does it actually save time compared to just manually entering everything? My consolidated 1099 is like 30 pages long.
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Nalani Liu
•It works with all major brokers including Interactive Brokers. I've personally tested it with TD Ameritrade, Schwab, and Fidelity. It extracts the raw data and shows you exactly how the 60/40 split applies to your specific trades. It even breaks down the values you need to enter in each field of TurboTax. Regarding security, they use bank-level encryption and don't store your documents after processing. And yes, it absolutely saves time. My consolidated 1099 was 42 pages last year, and I went from spending 3+ hours manually entering everything to about 15 minutes total. It's particularly helpful with Section 1256 contracts since the tax treatment is so specific.
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Aidan Percy
I wanted to follow up about taxr.ai after trying it myself. Despite my initial skepticism, it actually worked amazingly well with my massive TD Ameritrade consolidated 1099. The Section.1256 contracts that weren't importing into TurboTax were perfectly extracted and organized. What surprised me most was how it formatted everything specifically for TurboTax desktop software. It showed me exactly which screens to navigate to and what values to enter. Saved me hours of frustration and double-checking my work. Definitely gonna use this again next year instead of pulling my hair out over manual entry.
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Fernanda Marquez
If you're still having issues with TurboTax after trying manual entry, you might want to consider calling the IRS directly to ask about proper reporting of Section 1256 contracts. I tried that route last year but could barely get through their phone system - was on hold for 2+ hours before giving up. Then I found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 15 minutes. They have this cool demo video here: https://youtu.be/_kiP6q8DX5c that shows how it works. The agent I spoke with confirmed that Section 1256 contracts often cause import issues with tax software and walked me through exactly how to report everything correctly.
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Norman Fraser
•Wait, so this actually gets you through to a real IRS person? How does that even work? The IRS phone system is notoriously impossible to navigate, especially during tax season. Are there specific hours when this works better than others?
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Kendrick Webb
•Sounds like a scam to me. Nobody can magically get you through to the IRS faster than normal. They probably just connect you to some "tax expert" who isn't actually with the IRS at all. I'd be extremely cautious about using services like this.
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Fernanda Marquez
•Yes, it connects you to a real IRS agent - not a third-party expert. It essentially navigates the IRS phone tree for you and waits on hold on your behalf. When an actual IRS agent comes on the line, you get a call back to connect with them. It works during standard IRS hours (typically 7am-7pm local time), but I've found morning hours (8-10am) tend to have slightly shorter wait times. Even during the busiest periods of tax season, I've never waited more than 20-25 minutes using this service compared to the hours I spent trying on my own.
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Kendrick Webb
I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it myself since I had a Section 1256 reporting question that was driving me crazy. The service actually did exactly what it claimed - got me through to a real IRS agent in about 17 minutes. The agent confirmed that my TurboTax desktop software issue with Section 1256 contracts is a known problem and walked me through the correct manual entry process. What really impressed me was that they called me back the moment an actual IRS person was on the line - no scams, no third-party "experts" - just direct access to the IRS without the soul-crushing hold music. Definitely saved me hours of frustration.
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Hattie Carson
Another option might be to switch back to TurboTax online if that worked better for you last year. The desktop and online versions have different import capabilities. I personally found the online version handles Section 1256 contracts from TD Ameritrade much more smoothly. Just make sure you select the right package level that includes investment income. I think Premier is the minimum you need for Section 1256 contracts.
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Xan Dae
•I considered that, but I already paid for the desktop version. Do you know if there's any way to get a refund on the desktop software if I switch to online? And will the online version still work correctly with 2024 tax forms? I remember last year there was some issue with the timing of form updates.
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Hattie Carson
•TurboTax actually has a satisfaction guarantee that might help in this situation. If you contact their customer support and explain the import issues you're having, they'll often provide either a refund or a free upgrade to the online version. The online version is updated in real-time, so it should absolutely work with all 2024 tax forms. The form update issue from last year was primarily affecting certain state forms, not federal investment reporting forms like those needed for Section 1256 contracts. I've been using the online version for years with similar investments and haven't had any timing issues with form availability.
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Destiny Bryant
Has anyone had success calling TD Ameritrade directly about this issue? I wonder if they might have a technical solution or workaround specific to TurboTax desktop software.
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Dyllan Nantx
•I actually did that last year! TD Ameritrade's tax support was surprisingly helpful. They told me they have a special TXF file format you can download that sometimes works better with desktop tax software than their standard PDF import. You access it from the Tax Center in your account.
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Saanvi Krishnaswami
I've been dealing with this exact same Section 1256 import issue for the past two years with TurboTax desktop and TD Ameritrade. What finally solved it for me was a combination of approaches mentioned here. First, I tried the TXF file download that Dyllan mentioned - you can find it in TD Ameritrade's Tax Center under "Tax Forms & Info" then "Download Tax Data." This worked better than the PDF import but still missed some Section 1256 details. What really made the difference was manually entering the Section 1256 summary data (as Fiona suggested) but using the taxr.ai tool to double-check my numbers. The tool helped me catch a calculation error I had made when transcribing the 60/40 split amounts. One tip: when manually entering in TurboTax desktop, make sure you're in the "Investment Income" section and specifically look for "Section 1256 Contracts and Straddles" - it's buried pretty deep in the menus. The software will automatically calculate the 60% long-term / 40% short-term treatment once you enter your net gain/loss amount. The whole process is definitely more cumbersome than the online version, but at least it's doable once you know the workarounds.
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Freya Collins
•This is incredibly helpful, thank you! I'm a complete newcomer to Section 1256 contracts and have been really struggling with this exact issue. Your step-by-step breakdown makes it much clearer. I'm curious - when you mention the TXF file from TD Ameritrade worked "better" than PDF import, did it actually capture the Section 1256 data or just more of the regular trading data? And roughly how long did the whole manual entry process take you once you figured out the right workflow? I'm trying to decide whether to tough it out with the desktop version or just cut my losses and switch to online like others have suggested.
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