1099B does not have a cost basis as I acquired stock as a customer of Prudential & Anthem. Most of the sale is reported as a noncovered security. How do I report it?

[thelma3]

Do I need a special form to report a "non covered security"

[Rachel_W · Accepted solution]

No, you do not need a special form to report the sale of a "non-covered security".  

The term non-covered in IRS language simply means that the broker is not required to report the cost basis to the IRS.  

If the broker doesn't include the cost basis information on or with your Form 1099-B, then you will need to compute this on your own.  You can use brokerage statements, trade notices, historical stock prices, etc. to come up with a good estimate of the cost basis. 

Follow these steps to input your Form 1099-B and cost basis information:

• Login to your TurboTax Account 
• Click "Take Me To My Return"
• Click "Federal" from the left side of your screen
• Scroll down to "Stocks, Bonds, Mutual Funds, Other" and click "Start"
• Answer "Yes" to the question "Did you sell any Investments?"
• Click "Yes" that you have a Form 1099-B
• From here, TurboTax will walk you through inputting your form.  You will need to compute and enter your cost basis in Box 1e if not included on your Form 1099-B.

Please comment below if you need additional assistance with your Form 1099-B.

[bud1067]

If the non-covered cost basis reported on my 1099-b form is different than what my Quicken cost basis,(Lower than reported ) am I safe to change the "downloaded" brokerage inputs ?

[fanfare]

Report non-covered transactions on Form 8949 with Box B or E checked.