Thanks so much! That is what I did. I did the math and determined that Morgan Stanley had not reduced the cost basis on my behalf so I did that manually within the tax software so that my loss amount is correct. Also, I went back to the dividend entry section and removed the non-dividend distribution from Box 3 as I learned it was informational (from brokerage to me) and is not taxable. After I made those 2 changes, I ran another check and the WARNING about a possible incorrect entry went away. I am now sufficiently confident that this has been handled correctly and will be able to file both federal and state returns. Thanks again for providing such clarity. 😃😁🥰
