Wow, glad I researched and asked Turbotax. I have a non-dividend distribution for 2024 on my 1099-DIV. I entered it into my tax SW, but it was flagged during the review/checks. That is the only reason I researched and learned about reducing my cost basis on that stock because it WAS sold last year. I ran this question by my Morgan Stanley broker, he researched, too, and agreed that I should reduce my cost basis. Never did he say to not report it at all and that it was simply my own money being returned to me (that probably got reported as income the previous year). And apparently, he has no idea if Morgan Stanley ready adjusted my cost basis for me and doing so again would be dumb. (I did not know to ask that question.) It is only $6. But what if it had been $600? I thought that if the amount was on my 1099, I needed to report it because the IRS knows about it. The stock sold is a "non-covered security", so the cost basis was not reported to the IRS by MS. Should I just delete the $6 entry?
