Why did Turbotax say that I made profit when I actually lost money?

That $11,740.00 under the wash sale loss disallowed column is the difference between the $9178 loss you were expecting to put on your tax form, and the $2562 in gain that your were able to put on your tax form.

That number means that at the end of the year you still had open positions where you purchased replacement stock within 30 days before or after you sold shares of that same stock for a loss.

When you close those positions in 2021, without buying a replacement set of shares within 30 days, the next tax form will reflect that.

There are two other things to consider. If you made transactions in January 2021, they may have also triggered wash sales because of some December activities, and must be addressed. The second is that if you had multiple brokers, then you may have had other wash sales that an individual broker would not have been aware of.

I am not addressing the issue regarding how much of the capital gain loss you would have been able to deduct from ordinary income, and how much you would have had to carry over.

If you incurred realized losses and you bought replacement shares within 30 days before or 30 days after realizing the loss, the loss must be deferred and added to the cost basis of the replacement shares.

If the replacement share positions are closed before the end of the year in which the loss occurred with no subsequent new wash sale violation within the following 30 days then you get to deduct the losses in the year that they are realized.

If you carry the open positions that have wash sale adjustments into the new year then your tax bill will be higher since your losses are deferred. This is all about how your gains and losses are reported for tax purposes. It does not change what you gains or losses were.

You should be able to look at your trades and determine if you made money or not from your trading.

Read this for more details.