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Tax Filing Preparation

Importing Tax Forms Into Tax Software: TurboTax, H&R Block, and TaxAct

With Betterment, you can automatically import your tax information into TurboTax, H&R Block, and TaxAct. Here’s what you need to know.

Articles by Betterment Editors

By the Editorial Staff
Betterment Resource Center  |  Published: January 4, 2019

TABLE OF CONTENTS

TurboTax

H&R Block

TaxAct

Common Questions


If you need your tax forms, you can download them in your account.

Note: Software providers may have different versions of their tax preparation software, such as online versus desktop, and not all versions will support automatic import of brokerage data. Betterment cannot control which versions have automatic import enabled, so please ensure you review your options prior to software purchase if you would like to use automatic import features.

We do not currently support integration with Quicken.

Importing With TurboTax

Please note that while Betterment has provided the tax information in the format specified by the tax preparation software providers, we do not manage the software itself. If you are experiencing issues with your tax import, we encourage you to contact the software providers directly. To connect with a TurboTax Expert who is specially trained, please contact TurboTax directly.

Use an App Password if you have two-factor authentication enabled.

If you have two-factor authentication enabled at Betterment, please use an App Password generated within your Betterment account instead of your standard Betterment password. You can generate an App Password by heading to “Security” and clicking on “Generate a new App Password.”

TurboTax may round your data—which could lead to misreporting wash sales.

In some cases, TurboTax software may round the data imported from Betterment. This is not something Betterment can control, so please take care to verify the data import with the information provided on your Betterment tax forms. For more information on rounding, please see the IRS instructions for Form 8949.

Rounding done by TurboTax may cause some wash sales to be reported incorrectly. If a transaction has a wash sale that is less than $0.50, the TurboTax software will round the amount Betterment provides to $0 and will override the wash sale amount provided by Betterment with an amount equal to the difference between the sale proceeds and cost basis. This may result in an incorrect amount of wash sale for the transaction. Betterment cannot control this process, so please ensure you check all of your individual transactions against the 1099-B provided by Betterment to verify that your tax return is correct.

TurboTax will ask you about any dividends that are exempt from interest.

Betterment invests in a variety of state municipal bonds. If you are importing a 1099-DIV and Box 11 (Exempt Interest Dividends) is not $0, TurboTax will show you a screen which asks: “Choose the state where your tax-exempt dividends came from.” From the dropdown, you could select “More Than One State.” You could also consult the tax form detail and the fund company websites to determine the state(s) associated with your tax-exempt dividends. Instructions on how to obtain this information on our new Supplemental Tax Statement may be found here.

Please note that while most customers will receive a Supplemental Tax Statement, a small subset of customers will not, due to various holdings that are not generally included in our main portfolio strategies here at Betterment.

If you have more than 500 lines of transactions, you might not be able to import via the online version of TurboTax.

Certain versions of tax software limit the number of transaction lines they support for automatic upload. This varies from provider to provider. For example, the online version of TurboTax has a limit of 500 transaction lines.

If you are unable to automatically import your tax forms into your tax software, the IRS allows you to report the summary information on your electronic tax return and send a paper copy of your statement with Form 8453 to the IRS after your tax return has been accepted. If you report your Betterment transactions on Form 8453, you should check the box that says “Form 8949, Sales and Other Dispositions of Capital Assets (or a statement with the same information), if you elect not to report your transactions electronically on Form 8949.”

Instructions for Importing: Online Version of TurboTax

When you import your tax information into TurboTax, you will see a screen listing each of the documents available for import, with the name of the corresponding Betterment account next to each. Make sure to check or uncheck the documents applicable to the tax return you are working on.

From the Import Summary screen, select “Add Other Documents”. On the following screen, type “Betterment” into the “Import from my bank or brokerage” field. Select “Betterment” from the list below and click “Continue” to import.

Instructions for Importing: Desktop Version of TurboTax

In addition to the online import method detailed above, you can also select “Import” from the File menu and click “From Financial Institution.”

On the following screen, type “Betterment” into the “Enter financial institution name here” field. Select “Betterment” from the list below and click “Continue” to import.

Importing With H&R Block

Please note that while Betterment has provided the tax information in the format specified by the tax preparation software providers, we do not manage the software itself. If you are experiencing issues with your tax import, we encourage you to contact the providers directly. For direct support from H&R Block, please see the H&R Block support site.

H&R Block may round your data—which could lead to misreporting wash sales.

In some cases, H&R Block software may round the data imported from Betterment. This is not something Betterment can control, so please ensure you verify the data import with the information provided on your Betterment tax forms. For more information on rounding, please see the IRS instructions for Form 8949.

H&R Block’s rounding may cause some values to import as $0; please select all transactions for import into your return to ensure your tax return has all the complete and accurate information provided by Betterment.

If you are using the desktop version, wash sales which are rounded to $0 by H&R Block may not automatically import the adjustment code “W”. Please review your transactions against the PDF provided by Betterment to verify the proper code is selected.

Make sure all of your dividends are imported by selecting both types.

H&R Block imports 1099-DIV information for exempt-interest securities (e.g. MUB, CMF, NYF, and TFI) in two separate transactions, one for taxable dividends and one for tax-exempt dividend amounts. Please select both transactions to ensure you import your complete tax information from Betterment.

Instructions for Importing: Online Version of H&R Block

During the import process, H&R Block’s import summary window will provide you with a view of the tax documents imported from Betterment. You will be able to see the corresponding account name for your 1099-DIV and 1099-R tax forms, if you have any, but unfortunately H&R Block does not allow import of this information for 1099-B forms, so transactions for multiple accounts will be shown together (as shown in the screenshot below). Please review the applicable PDF tax statement provided on the Activity page of each Betterment account to ensure you import the correct information.

Select the Federal tab of the tax preparation questionnaire and click the “Income” icon in the top toolbar. Select the checkboxes for the tax forms you’ve received (1099-B and 1099-DIV in the “Interest and Investment Income” section and 1099-R in the “Retirement and Social Security Income, Including Retirement Plans” section). Click “Next”, and on the following page, click “Add New 1099” (the exact text will differ for 1099-R, 1099-B, and 1099-DIV).

Type “Betterment” in the “Financial Institution” field and click “Next” to import your data.

Instructions for Importing: Desktop Version of H&R Block

H&R Block’s desktop software does not allow import of account names. When you log in to Betterment from the H&R Block desktop software, you will see all of the tax information for all of your accounts, but unfortunately H&R Block will not display the account names for each piece of information. If you decide to use H&R Block’s desktop software, you are responsible for verifying that you are importing information for the correct account.

Select the Federal tab of the tax preparation questionnaire and click the “Income” icon in the top toolbar. From the “Where Do You Want To Go?” screen, click on the appropriate form (1099-R, 1099-B, or 1099-DIV). On the next screen, click “Import” (the exact text will differ for 1099-R, 1099-B, and 1099-DIV).

Next, type “Betterment” in the “Bank, broker, or financial Institution” field, select Betterment, and click “Import” to import your data.

Importing With TaxAct

While Betterment has provided the tax information in the format specified by the tax preparation software providers, we do not manage the software itself. If you are experiencing issues with your tax import, we encourage you to contact the providers directly. For more information, please see the TaxAct support site.

Do you have multiple legal accounts?

TaxAct does not support import for Betterment customers with multiple legal accounts, such as both a personal account and a joint account, or both a personal account and a trust. If you have multiple accounts and would like to use TaxAct, please download the CSV of your tax information here and use TaxAct’s CSV import tool. You can only download a CSV of your 1099-B, so if you need a CSV of your 1099-DIV also, please email taxseason@betterment.com.

Please note that TaxAct only allows automatic import for 1099-B forms.

TaxAct may round your data—which could lead to misreporting wash sales.

In some cases, TaxAct software may round the data imported from Betterment. This is not something Betterment can control, so please take care to verify the data import with the information provided on your Betterment tax forms. For more information on rounding, please see the IRS instructions for Form 8949.

Rounding done by TaxAct may cause some wash sales to be reported incorrectly. If a transaction has a wash sale that is less than $0.50, TaxAct’s software will round the amount Betterment provides to $0 and will override the wash sale amount provided by Betterment with an amount equal to the difference between sale proceeds and cost basis. This may result in an incorrect amount of wash sale for the transaction. Betterment cannot control this process, so please ensure you check all of your individual transactions against the 1099-B provided by Betterment to verify that your tax return is correct.

Instructions for Importing: Online Version of TaxAct

Select “Stock data import” from the “Investment Income” section of the Federal Q&A tab.

On the following screen, click “Electronic import” and select “Betterment” from the “Select Brokerage or Software Vendor” dropdown.  After the import is complete, you can use the “Stock Assistant” tool to review your data.

Instructions for Importing: Desktop Version of TaxAct

In addition to the online import method detailed above, you can also select “Import” from the File menu and click “Stock Data.”

Next, click “Electronic import” and select “Betterment” from the “Select Brokerage or Software Vendor” dropdown. After the import is complete, you can use the “Stock Assistant” tool to review your data.

Common Importing Questions

How can I generate an app password?

App Passwords help you to connect to finance applications and services (such as Mint and TurboTax) for convenience and productivity in a safer way.

Select “Settings” from the menu and then “Security.” Click “Generate a new App Password” in the section “App Passwords.” Next, we’ll ask you which application this password is for.

Lastly, we’ll show you the password we generated for you. We will only display this once. To use this password, simply copy and paste the 20-character password shown and use it to log in to the application you set it up for. You won’t need to remember it, so don’t write it down or share it with anyone.

Only connected applications can use this password to see your account. This password will not work for logging into Betterment directly.

Why am I unable to automatically import my Betterment tax forms?

Certain versions of tax software limit the number of transaction lines they support for automatic upload. This varies from provider to provider. If you are unable to automatically import your tax forms into your tax software, the IRS allows you to report the summary information on your electronic tax return and send a paper copy of your statement with Form 8453 to the IRS after your tax return has been accepted.

If you report your Betterment transactions on Form 8453, you should check the box that says “Form 8949, Sales and Other Dispositions of Capital Assets (or a statement with the same information), if you elect not to report your transactions electronically on Form 8949.”

Why are there so many transactions on my 1099-B?

Your 1099-B could be long, particularly if you have frequent allocation changes or withdrawals. In particular, if you have enabled TLH+, you may see many transactions. What shows up as a single transaction in your activity section might actually be multiple ETF sales for tax purposes, which is what the 1099-B shows. Sales are grouped by date of sale. You can also reference your quarterly statements for a chronological list of transactions, each with a breakdown by ETF sold.

The CSV download of your 1099-B can also be useful to sort the information in different ways, or to import into other software. You can request a CSV download by emailing taxseason@betterment.com.

Still have questions?

Visit our tax guide for comprehensive information on everything related to tax season.

Please note that Betterment is not a tax advisor and the information provided should not be construed as tax advice, but should be used for informational purposes only. Please consult a qualified tax professional or the IRS to determine the rules that apply to your individual tax situation.

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