In 2019 I received a dividend payment. On the 1099-DIV a large portion of this was listed in Box 3, nondividend distribution. I believe the amount exceeds what I originally paid for the stock. TurboTax states that Box 3 has no impact on taxes and is just there to match the paper form, which seems true except ones the amount exceeds the cost basis. IRS Publication 550 provides an example in the section on Nondividend Distributions (pg 20-21 Example 2) where it shows Nondividend distributions $1 more than the cost and states "You reduce your basis in each share to zero and report $1 of gain. See the Instructions for Form 8949 for details and more information."
It makes it sound like Capital Gain taxes should be paid this tax year on that $1 (even though nothing was sold), but form 8949 that it points to only asks questions about items that are sold for calculating Capital Gains.
Should I be paying capital gains taxes on this excess amount this year, or would I be paying it at a later date, when the stock is sold? If so, how can I enter it in TurboTax?
