topic What is the difference between covered and noncovered as it pertains to 1099-b in Retirement tax questions

What is the difference between covered and noncovered as it pertains to 1099-b

missmissplace — Thu, 06 Jun 2019 13:45:39 GMT

my 1099-b says my sale is longterm, but doesnt specify covered or non-covered. how can i tell?

Covered means basis is reported to the IRS. Noncovered me...

MargaretL — Thu, 06 Jun 2019 13:45:41 GMT

Covered means basis is reported to the IRS. Noncovered means basis is not reported to the IRS. The 1099-B specifies this in a couple of ways... sometimes you will see a box checked in the covered/uncovered column. Often, you will see a title above your stock sales that would say "Long-term with covered" or "Long-term with basis reported to the IRS"... look for those descriptions to determine the sale category.

Re: Covered means basis is reported to the IRS. Noncovered me...

Mike Correll — Wed, 03 Feb 2021 22:05:57 GMT

What if the 1099B has some entries that have Box 5 listed with a Yes and some with a no. Should this be considered covered or non covered. All of the entries are more than 9 years old.

Re: What is the difference between covered and noncovered as it pertains to 1099-b

PattiF — Wed, 03 Feb 2021 22:34:42 GMT

Using a "yes" or "no" is an unusual way of reporting the information. Brokers did not have to provide this information to investors until January 1, 2011. It makes sense then that all of the events are more than nine years old.

Box 5 is checked if it is a non-covered security. Yes means that the box is checked. See page 5: IRS Instructions 1099-B