Computers are supposed to make our lives easier so let’s put them to work! Luckily, if you’re a TurboTax user, then you can put your computer to work and import your tastyworks data to prepare your taxes.
*Please Note: Importing tastyworks data requires TurboTax Premier or better. Also, there are transaction limits with Turbotax Online and TurboTax CD/downloadable software. TurboTax Online has a 500 transaction limit. TurboTax CD/downloadable software has a ≈ 2,000 transaction limit. If you experience any issues with importing data using the Online version then may want to consider switching to the CD/downloadable software. To read more about this limitation, please click here.
Start by scrolling down to the “Investment Income” section when you are at “Your 2017 Income Summary” page. You can upload your 1099 by clicking the ‘Start’ button next to “Stocks, Mutual Funds, Bonds, and Other.”
To import your tastyworks investment/expense data, select tastyworks from the list of brokerages. You can select tastyworks by searching or scrolling down the list. After you select tastyworks, please click the “Continue” button located in the bottom left-hand corner.
You will be prompted with a login screen to input your tastyworks account number (for example, 6YL#####) and social security number (without dashes). If you do not know your account number and want to look it up, then please log in to your account at tastyworks.com, or click here. Your account number is listed below “Account Status.”
Your password for an entity account would be the Tax Identification Number (TIN) associated with the account.
*Please Note: If you just installed your software and are experiencing issues with logging into your tastyworks account then your software may need an update. Simply close TurboTax and relaunch it. Your TurboTax Software will retrieve updates as necessary, and you should be able to log in after that.
When TurboTax imports your data from our clearing firm, Apex Clearing Corporation, you may notice a “Needs Info?” column with some positions that include a ‘YES.’ Positions with a ‘YES’ next to a Section 1256 Contract (typically a cash-settled index option) is explained later in this article. Positions with a ‘YES’ next to an equity options position typically denotes a short option position that was held to expiration. To address this issue, click the ‘EDIT’ button.
In the example below, we’ll use a short 7.50 JCP call that was part of a short call spread that expired out-of-the-money (OTM). The proceeds listed is net of commission and fees.
After clicking edit, Box 1e will be blank. You may enter $0.00 since you get the keep the entire credit when short options expire OTM. After entering, click ‘Done” in the bottom right-hand corner. You will return to ‘Your 2017 Income Summary’ page.
Additionally, since Section 1256 Contracts have a different tax treatment all you need to list is your total profit or loss in the Contracts or Straddles section, which is explained further down below.