Deductions & credits

We did receive a 1099MISC and in Box B the settlement amount is entered and it shows as taxable income when it is entered into Turbotax. The settlement was for the loss of value of the stock that was incurred due to the subsequent market downturn when it was not sold by the Edward Jones broker at the date instructed. The shares were then transferred into Fidelity account and their cost value became their value at time of transfer. They were subsequently liquidated later in the year at a loss again using the transfer cost as the value. The point is that settlement was for what we would have received tax free as inherited stock liquidation if they had been sold as we directed. We have contacted Edward Jones for a revised 1099 or something and they say that is the only way to report it.