Form 1099-DA field reference
Form 1099-DA Box 9: Noncovered security
What to check
- Reconstruct basis from records
- Reconstruct holding period
- Do not report gross proceeds as gain
Where Box 9 flows on your return
A checked Box 9 does not itself appear on Form 8949, but it explains why Boxes 1d, 1g, 1h, 1i, and 6 may be blank for that line — meaning you, not the broker's reported figures, supply the acquisition date, basis, and holding period when you complete that row of Form 8949.
How Box 9 works
Box 9 flags that the digital asset sold is a noncovered security — generally meaning it was acquired before 2026, the year covered-security reporting for digital assets began, or otherwise falls outside the categories brokers must track basis for. Checking this box tells you the broker is not vouching for the acquisition-date, basis, and holding-period fields the way it would for a covered security.
A broker can still voluntarily complete Boxes 1d, 1g, 1h, 1i, and 6 for a noncovered security even with Box 9 checked; when it does, that reporting is optional and comes with penalty protection under sections 6721 and 6722 for the broker, but you should still confirm those voluntary figures against your own records rather than assuming they are authoritative.
Because covered-security status is based on when the asset was acquired within a specific account, the same underlying token can appear as "covered" on one broker's 1099-DA and "noncovered" on another's, if you moved part of a position between accounts around the transition date. Always check Box 9 line-by-line rather than assuming consistent treatment across all your 1099-DAs.
Worked example
Grace bought a token in 2023 and sold it this year. Because the purchase predates the covered-security cutoff for digital assets, her broker checks Box 9 and leaves Box 1g blank. Grace pulls her original 2023 purchase confirmation to establish her $4,000 basis herself and reports the sale on Form 8949 using her own figures rather than a broker-supplied basis.
Continue the filing flow
Frequently asked questions
What does a checked Box 9 mean for my tax filing?
It means the digital asset sold is a noncovered security, so the broker is not required to report the acquisition date, basis, or holding period — you are responsible for reconstructing those figures from your own purchase records before completing Form 8949.
Can Box 1g still have an amount even if Box 9 is checked?
Yes — a broker can voluntarily report basis for a noncovered security, which gives it penalty protection for the reported figures, but you should still verify the voluntary figure against your own records rather than treating it as automatically correct.
Why is the same token noncovered on one broker's statement but covered on another's?
Covered-security status generally depends on when the asset was acquired within that specific account. If you moved a position between brokers around the cutover to covered-security reporting for digital assets, the same token can show differently depending on which broker's records apply.