Unsupported Calculations and Situations in the 2022 TurboTax Individual Federal Tax Software Program - Investments Reported on Schedules B or D

Sep 19, 2026

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Unsupported Calculations and Situations in the 2022 TurboTax Individual Federal Tax software program outlines specific investment and reporting scenarios the program cannot facilitate. It covers bond market discounts and elections, regulated futures contract dealer reporting, deferred gains for qualified opportunity funds, and limitations tied to Form 1099-B. It also describes issues with original issue discount recalculations, income deferral under section 83(i), and carried interest treatment, plus installment sale and foreign earned income combinations.

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Investments Reported on Schedules B or D

Bond Sales (Schedules B and D)

Dealers in Regulated Futures Contracts (Form 6781)

Deferred Gains for Qualified Opportunity Funds (Form 8949)

Original Issue Discount (OID) (Schedule B)

Installment sales

Installment Sales (Form 6252)

Interest on Deferred Tax - Section 453A (Form 6252)

Foreign Income

Foreign Earned Income (Form 2555)

Foreign Earned Income with Schedule J and Form 8615

Unsupported Calculations and Situations in the 2022 TurboTax Individual Federal Tax Software Program Investments Reported on Schedules B or D 1. Bond Sales (Schedules B and D): If a bond is purchased on the secondary market at a price below par, its “market discount” is the difference between the purchase price (plus accrued interest and OID, if any) and its stated redemption price at maturity. This difference is generally reported as interest in the year the bond is sold. However, a taxpayer may elect under section 1278(b) of the Internal Revenue Code to report any discount ratably in the year in which it accrues. This election is made by attaching a statement to the tax return as described in Publication 550. Neither the election, nor the adjustments to interest and cost basis that are required by making this election, are facilitated by the program. If you have made this election with respect to a bond you own, you will need to make appropriate entries to account for any interest amounts or cost basis adjustments you have calculated. 2. Dealers in Regulated Futures Contracts (Form 6781 – Straddles and Contracts) : The program does not support all of the reporting required of dealers in regulated futures contracts. A dealer is someone who is licensed in securities and has an established place of business and regularly purchases securities for resale to customers. Among other requirements, dealers must report gain or loss on the sale of regulated futures contracts as self-employment income on Schedule SE. 3. Deferred Gains for Qualified Opportunity Funds (Form 8949 for Codes Y and Z): The program does not support the reporting of deferring tax on an eligible gain by investing in a QOF, by using Code “Z” in column (f) . The program does not support the reporting of the amount of eligible gain that you previously deferred and now need to recognize by using Code “Y” in column (f) . 4. When Box 7 of Form 1099-B is checked, the program does not limit losses based on gross proceeds from a reportable change in control or capital structure reported in Box 1d of that form 5. Original Issue Discount (OID) (Schedule B): If you received a 1099-OID reporting OID income on a contingent payment or inflation-indexed debt instruments, stripped bonds or coupons, or debt instruments purchased at a premium that have not been adjusted by your financial institution, you may need to recalculate your OID income as described in IRS Publication 550. The recalculated amount should be entered in the program instead of the reported amount from Form 1099-OID. The program does not facilitate the calculation of OID income. 6. Deferral of Income Attributable to Qualified Stock: We do not support the election to defer income attributable to qualified stock under Code Section 83(i) . Generally effective with respect tostock attributable to options exercised or restricted stock units (RSUs) settled after Dec. 31, 2017, a qualified employee can elect to defer, for income tax purposes, recognition of the amount of income attributable to qualified stock transferred to the employee by the employer. (Code Sec. 83(i), as amended by Act Sec. 13603(a)) . 7. Carried Interest: We do not support Code section 1061 for the change of carried interest being treated as short term capital gains for a 3-year period instead of a 1-year period. This change was apart of the Tax Cuts and Jobs Act. Installment sales 1. Installment Sales (Form 6252): This program does not support installment sales on a stock that is not Section 1202 Qualified Small Business Stock. 2. Sale of Qualified Small Business Stock and Installment Sales (Form 6252) : For sales of Qualified Small Business Stock, the program does not apply the Section 1202(b) gain limitation to the exclusion. If you have a gain in excess of the Section 1202(b) limit, you must split the disposition and enter it as two separate transactions. Check the "Yes" box on Line E of the Form 6252 General Information

FAQs

What bond discount situation does the program not support for TurboTax 2022?

The program does not facilitate the election to report bond market discount ratably under section 1278(b). It also requires manual entries for interest amounts and cost basis adjustments that result from the election.

Which regulated futures contracts reporting items are not supported?

The program does not support all required reporting for dealers in regulated futures contracts. It specifically references dealer gain or loss reporting as self-employment income on Schedule SE.

How does TurboTax 2022 handle Form 2555 Foreign Earned Income when combined with other forms?

The program does not support the Form 1040 Foreign Earned Income Tax Calculation when certain related forms are part of the return, including Schedule J (income averaging for farmers and fishermen) and Form 8615 (tax for certain children with investment income).

Sep 19, 2026

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