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Hi @DianeW777  denoting the correct "noncovered" may allow you to appropriately adjust the basis on the 8949, but I don't believe it impacts whether or not the ordinary income was appropriately reported in the W2. This would need to be adjusted at the income level on your 1040, which in prior years there was the option during the workflow to select if it has already been reported in your W2 or if it needs to be added as ordinary income.

 

When I select covered or noncovered in the flow, in neither instance does it appropriately add back the income to the total income line when I go to tool > View Tax Summary.