I have a number of tax returns I do each year and as I have mentioned before I buy H&R Block at Home Deluxe with State for getting the task done.
(The H&R Block links on this page will save you 15%!)
This year the brokerage companies are responsible to start reporting cost basis on some of the securities sold during the year.
That’s great, saves you time, IF they are right.
And, no, they are NOT always right!
Coincidentally, in past years when some firms voluntarily offered this information and were not right, the error happened to be in the GOVERNMENT’s FAVOR, imagine that!
What I was wondering when I first heard about this new requirement a year or so ago, naturally it crossed my mind – based on previous experience – what does one do when there is an error?
Fortunately, when entering data into the H&R Block tax preparation software my question was answered as they prompted me to enter a different cost basis in the case that the reported one was incorrect.
The software also conveniently differentiates between sales where cost basis is NOT required to be reported.
So, as usual, H&R Block does the work so you don’t have to. And saving time on tax preparation is important to me as I personally see it as an unproductive giant sucking sound on otherwise productive people’s valuable time.
(Remember, any time spent doing taxes takes away from your ability to go out and earn MORE TAXABLE INCOME! – but Congress and the IRS apparently haven’t figured that one out yet.)
Here Is A Tax Preparation Tip If You Have A 1099R From A Roth
If you have, as I did, a 1099R from a Roth IRA that is an early distribution, the basic entry of the data leaves ALL of the distribution taxable.
Note that even though Vanguard, in this case, knows EXACTLY how much was contributions and how much was infinitesimal interest from their formerly high paying money market account, they provide ZERO taxable amount information.
While entering the 1099R into H&R Block Tax Software there is no place to enter the “cost basis” amount either.
I did, though, find it on Form 8606, Line 22, which is accessible by selecting Forms from the main menu bar, Forms, Open Forms and scrolling down to “Form 8606 (non-deductible IRA’s)”. Scroll down to Line 22, cost basis.
About the LAST THING YOU WANT TO DO is pay tax AGAIN on money you have already paid tax on once.
So whether you have a simple tax return and can File Online For Free or want the tax software download, I highly recommend H&R Block Tax Software.
Thank you! I was wondering where to put cost basis and couldn’t find the info anywhere else. Saved me from having to call H&R Block.
I cannot seem to find a way to enter 1099-R information although W-2, 1099-INT, etc. are all easily accessible. What does one need to select in order to enter that information?
Do you know how to do the Roth 1099R cost basis in 2018 H&R Block online? I tried calling but was told this is as a tax professional question not support. When I enter all my Roth IRA contributions and the distribution it greatly reduces my refund and I know that my distribution is not taxable. If I enter in TurboTax it doesn’t change my refund. The questions they ask get the basis out of you. I just prefer H&R Blocks product (other than this issue) and have my previous years history filed through them so I prefer to not switch.
The 1099R process seems to be a huge short fall in the H&R Block software. We can’t even find the form.