No. You should not alter the original Form 1099-R. Doing so will cause your return to be flagged by the IRS for not matching what they received.
Instead, you can use the prompts within TurboTax to reconcile your basis.
First, ensure the distribution code in Box 7 is correct (Code 4 for death, or 7 for a direct distribution).
Upon inputting the information from your Form 1099-R, TurboTax will ask questions to determine if it was inherited annuity.
You will also be asked if the amount in Box 2a is correct, to which you will select "No", which will then ask you to enter the known cost basis.
TurboTax will then calculate the taxable portion for you and place the total distribution on Form 1040, Line 5a, and the taxable amount on Line 5b.
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