No, this means that your brokerage company did not have the dollar amount that you paid for the stock so they did not report the cost basis. They did report the sale proceeds to the IRS so you have to report it on your income tax return.
You have to enter what you paid for the stock otherwise you will pay taxes on the total amount of the sales proceeds of the stock.
For tax-reporting purposes, the difference between covered and noncovered shares is this:
- For covered shares, we're required to report cost basis to both you and the IRS.
- For noncovered shares, the reporting is sent only to you.
My statement from TDA for my sales of stocks indicates a cost basis but says it was not reported to the IRS should I indicate the cost basis was wrong and enter it when completing everything in Turbo Tax?
If the cost basis on the 1099-B is correct, leave it as shown on (or imported) the form from TDA.
If the cost basis is incorrect, indicate that in the interview and enter the correct cost basis.