Turbotax Form 8949 nightmare - having issues with capital gains reporting after moving states

This is a common confusion with Form 8949 when you've moved between states. The issue is that TurboTax is showing you the gross proceeds from sales rather than your actual gains or losses in column A. What's happening is that TurboTax has recorded $2,650 of sales (the total amount you received when selling assets), not your actual profit or loss. That's why you're seeing a "gain" even though you had a net loss overall. Since you mentioned that all your transactions were short-term and resulted in a net loss, and none of them were long-term gains as a resident or non-resident of your new state, you should enter zero in Column B. This is telling your new state that none of the "gain" amount in Column A is taxable by them.

I went through exactly the same headache last year with TurboTax and Form 8949 after moving states. After hours of research, I found this amazing tool called taxr.ai (https://taxr.ai) that literally saved my sanity. It analyzed my tax documents and explained exactly what was happening with my capital gains reporting. What it showed me was that TurboTax sometimes mislabels proceeds as gains in the state return section. The tool confirmed that when you have short-term transactions but no long-term gains, you should put zero in column B. The site has this document analyzer that walks through your specific tax situation and explains exactly what entries should go where.

Just wanted to follow up. I decided to try taxr.ai for my state move situation and it was surprisingly helpful. The document analyzer immediately identified that my brokerage statements were showing gross proceeds rather than actual gains, which explained why TurboTax was showing positive numbers when I actually had losses. The explanation they provided about how to properly allocate capital gains between states based on residency periods was much clearer than anything I found on TurboTax or state tax sites. Ended up putting zero in column B like they suggested and my return was accepted without any issues. Their explanation about the difference between proceeds and taxable gains really cleared things up for me.

After dealing with the IRS for years, I've found the fastest way to resolve tax questions like this is to actually talk to an IRS agent - but as we all know, getting through to the IRS is practically impossible with those wait times. I discovered Claimyr (https://claimyr.com) which honestly changed my whole tax filing experience. You can check out how it works here: https://youtu.be/_kiP6q8DX5c I called about a similar Form 8949 issue after moving states mid-year, and they got me connected to an IRS rep in about 15 minutes when I had been trying for days on my own. The agent confirmed that for short-term losses with no long-term gains, I should enter zero in column B on the state form. Having that official confirmation saved me so much stress.

I need to eat my words from my previous comment. I broke down and tried Claimyr because I was desperate with a similar state-to-state move tax issue. I was absolutely convinced it was a scam, but I got through to the IRS in about 20 minutes when I had been trying for literally weeks. The agent I spoke to explained that TurboTax often confuses gross proceeds with actual gains on state returns when you've moved mid-year. She confirmed that entering zero in column B was correct for my situation since I had no long-term gains that were attributable to my new state of residence. Having that confirmation from an actual IRS agent was worth every penny.

I think what's happening is that TurboTax is looking at your Form 1099-B and displaying the gross proceeds in column A ($2,650), not your actual net gain/loss. When you have a situation where you've moved states, you need to determine which transactions occurred while you were a resident of each state. If none of your transactions resulted in long-term gains in either state, then zero is the correct answer for column B. Short-term gains/losses are reported differently on state returns than long-term. The instruction is specifically asking about long-term gains sourced to your new state.

The Turbotax error message is super misleading. Had the same issue last year and almost overpaid my state taxes. The $2,650 is definitely the gross proceeds (total sales amount) NOT your actual gain.

I had this exact same issue when I moved from California to Texas mid-year! The key thing to understand is that TurboTax is showing you gross proceeds (total amount received from sales) in column A, not your actual capital gains or losses. Since you mentioned all your transactions were short-term and resulted in a net loss, you should definitely enter zero in column B. The form is specifically asking about long-term capital gains that are attributable to your new state, and you don't have any. Don't worry about entering zero - the instructions literally say "If none, enter a zero in column b" for this exact situation. The state understands that not all proceeds shown in column A will be taxable by them, especially when you've moved mid-year and have no long-term gains. I made the mistake of overthinking this and almost entered the wrong amount. Once I realized that proceeds ≠ gains, everything made sense. Your federal return already properly accounts for your actual net loss, so you're all good there.