There are no much details provided in the 1099. Just a one liner reported in Non-Reportable Actions in 1099 form with stock name, quantities, date, amount as "0.00" and transaction type as "Security deemed worthless".
You can deduct worthless stock only in the tax year it becomes completely worthless. This normally happens when the corporation files for bankruptcy, stops doing business, and has no assets. Financial difficulties won't make a company's stock worthless unless there is no hope that the company will pull through. IRS and a Worthless Security
Enter a worthless stock like any stock sale but with a sales price of zero and the word "worthless" in its description. Enter the correct cost or basis, date acquired, and December 31 as the date sold.
Thank you so much for prompt response. One follow-up question on your answer - "You can deduct worthless stock only in the tax year it becomes completely worthless". Is this mean my 2024 1099 has the statement as worthless stock. So I can file this stock as my worthless sales right?