Thank you! I finally got a revised 1099-B from my broker showing the partial cash liquidation distribution in Box 9. That amount shows up on my IRS 1040-SR form Schedule D, and is taxed in the year the distribution was received.
I didn't bother to check in the voluminous IRS tax code to confirm if these partial distributions I receive after the underlying stock basis reaches $0 should be taxed in the year received, or reported after the final distribution is made (in a later tax year) and the underlying security no longer exists. I assume TT knows how to do this, and my prior year tax return was approved by the IRS with the excess cash distribution amount being taxed in the year the it is received.
Also, maybe if interest to others, after re-considering my concerns if I could file an amended return to recapture the tax I paid if I had reported the excess distribution early rather than after the final distribution was made. My intent was if I could extend the gain to a later year when my joint tax return gross income (and tax!) would go down by quite a bit when my wife retires. In have quite a lot of capital gains losses to offset the income from these distributions, so by filing earlier I didn't pay any added tax out of pocket. I merely used up some of the offsetting carry over loss, which will affect gains in the coming year (or two), but by then I'll be in the lower income tax bracket when my wife retires anyway! So it makes no difference!
