Form 1099-DA field reference
Form 1099-DA Box 2: Basis reported to IRS
What to check
- Compare basis with your records
- Check whether an adjustment remains necessary
- Use the indicated Form 8949 category
Where Box 2 flows on your return
Box 2 determines which Form 8949 category to check for that transaction — "basis reported" or "basis not reported," matched with the short-term/long-term split — which in turn tells the IRS whether it should already have a matching basis figure on file from the broker.
How Box 2 works
Box 2 is a checkbox, not a dollar amount — when checked, it confirms the broker reported the Box 1g basis figure to the IRS as well as to you, and Box 6 supplies the short-term, long-term, or ordinary characterization the IRS needs to match the transaction correctly.
The box gets checked in two situations: routinely, whenever the sale involves a covered security with basis reporting required, or voluntarily, when the security is noncovered (Box 9 is checked) but the broker chooses to report basis to the IRS anyway. Optional aggregate reporting methods for stablecoins or specified NFTs never check this box, since those methods do not include basis reporting.
Whether Box 2 is checked changes which Form 8949 category applies to the transaction — the IRS's copy of the 1099-DA already contains the basis figure when Box 2 is checked, so a mismatch between your reported basis and the broker's figure is more likely to draw a matching notice than for an unchecked-box transaction where the IRS has no comparison figure on file.
Worked example
Priya's 1099-DA shows Box 2 checked and Box 6 indicating long-term. Because the IRS also received her $2,000 basis figure directly from the broker, Priya reports the sale in the "basis reported to the IRS" category on Form 8949 Part II, matching what the broker already filed.
Continue the filing flow
Frequently asked questions
What does it mean if Box 2 is checked on my 1099-DA?
It means the broker reported the basis figure in Box 1g directly to the IRS, not just to you — so the IRS already has that number on file and expects your Form 8949 entry to match it.
Which Form 8949 category do I use based on Box 2?
When Box 2 is checked, use the "basis reported to the IRS" category matched to the short- or long-term treatment in Box 6; when it is not checked, use the corresponding "basis not reported" category instead.
Can Box 2 be checked even for a noncovered security?
Yes — if a security is noncovered (Box 9 checked) but the broker voluntarily reports its basis to the IRS anyway, Box 2 gets checked even though basis reporting was not mandatory for that transaction.