Form 1099-B Worksheet: Noncovered Security-2 applies only to a trans. reported on Form 1099-B. Do not enter for (fund). What does this mean? What do I check/correct?

[MichaelL1 · Accepted solution]

Non-covered means that the broker did not list the cost basis of the stock (or fund) sold, as it was before they were required to keep track.

So you need to enter the cost basis in the program.  It may also ask if short term or long term (held for at least one year).

[TomYoung]

That's indicating that you somehow, and I don't know how unless you've been working in Forms Mode that's only available using a desktop version, that you've indicated both that you didn't receive a 1099-B for the sale AND the 1099-B that you received reported the trade as noncovered.

If you imported the trade then it sounds like something has been mishandled in the .TXF file

Delete that trade and re-enter it.

Tom Young

[Questioner]

I have the same problem.  It showed up at the checking stage.  I imported the data (from National Financial Services LLC) and did not edit anything before the check.  I am using the windows desktop version.  Perhaps there is a bug in TT.

[phil0906]

Uncheck the box the question is asking you.