You can get the information as to the category of the stock sale (short-term, long-term, covered, non-covered,) from your tax reporting document.
It is always a good idea to confirm the tax reporting document matches what TurboTax is designating it to be.
No, you would not change the category the tax reporting document has assigned to it.
It is referring to the information that the issuer previously sent to IRS. That will not be changing from your return entries because you are not the issuer. You will NOT change the category of the sold item to "covered" when you enter the cost basis of an asset sold when it was originally reported as a "non-covered sale".
Form 8949 allows you and the IRS to reconcile amounts that were reported to you and the IRS on Forms 1099-B or 1099-S (or substitute statements) with the amounts you report on your return.
If you receive Forms 1099-B or 1099-S (or substitute statements), always report the proceeds (sales
price) shown on the form (or statement) in column (d) of Form 8949. If Form 1099-B (or substitute statement) shows that the cost or other basis was reported to the IRS, always report the basis shown on that form (or statement) in column (e).
If any correction or adjustment to these amounts is needed, make it in column (g). See How To Complete Form 8949, Columns (f) and (g), later, for details about these adjustments.
For additional information refer to IRS Instructions for Form 8949
