Get your taxes done using TurboTax

Yes, they need to be reported and included with your tax return income.

The terms covered or uncovered simply refer to the information the broker has access to in regards to your stock basis.  Shares tracked by brokerage operations are called covered shares. Other shares are termed uncovered. You must continue keeping details on uncovered shares that are not tracked for you.

Box 6. Acquisition Premium 

For a covered security acquired with acquisition premium, enter the amount of premium amortization for the part of the year the debt instrument was owned by the holder.  If you reported a net amount of OID in box 1, 8, or 11, as applicable, leave this box blank. You may, but are not required to, report the acquisition premium for a tax-exempt obligation that is a covered security acquired before January 1, 2017.

This can be found when you are entering your Form 1099-OID.  Make sure to use the following steps to enter the acquisition premium.

1. Open your TurboTax account/return (Online or CD/Download)
2. Select Wages & Income > Interest and Dividends > 1099-OID, Foreign Accounts > Start or Update
3. Select the check box beside 'Form 1099-OID...' > Continue > Yes > I'll type it in myself > Continue
4. Type in the information for each box where there is an amount on your Form 1099-OID
5. See the image below.