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With the IRS reporting requirements surrounding securities, brokers are generally required to report certain information to you about your stocks. However, when the stocks have been transferred to your current broker from a previous broker, the current broker can treat the stocks as non-covered securities. When this is the case, your current broker may not have the same reporting requirements (i.e. providing your basis amount).

If the stock information reported on Form 1099-B Proceeds From Broker and Barter Exchange Transactions is for stocks which did not originate with your current broker, Box 5 Check if nonrecovered security will be checked.

If you have received a Form 1099-B with Box 5 checked, do the following when entering the form into the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Investment Income in the Federal Quick Q&A Topics menu to expand, click Gain or loss on the sale of investments to expand, then click Capital gain or loss (Form 1099-B).
  3. Click + Add Form 1099-B to create a new copy of the form or click Edit to review a form already created.
  4. Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.
  5. On the screen titled Investment Sales - Category, either select "B-Short-term transaction in which basis was NOT reported to the IRS" or "E-Long-term transaction in which basis was NOT reported to the IRS" from the Form 8949 category drop-down, then click Continue.

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Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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