Section 1202 is an exclusion of gain on Qualified Small Business (QSB) Stock. To enter the information for your QSB gain and exclusion, follow the steps below. The TaxAct program will automatically transfer this amount and enter it as a positive number per the previous instructions on the 28% Rate Gain Worksheet. You are responsible for verifying this amount.
Enter Exclusion
Online
Dashboard
From within your TaxAct return, click Income.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Investments & Savings drop-down.
Click Add beside Stocks, Cryptocurrency & Other Investments.
Click Add Another Sale, enter the basic transaction details, and in the Other details section, click the box I need to make an adjustment.
In the field that shows, enter the adjustment amount and select code Q - Qualified small business stock exclusion in the drop list.
Click Continue and select any uncommon situations, if applicable.
On the Investment Sales - Qualified Small Business Stock screen, verify the information and click Continue.
Classic
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Investment Income drop-down, then click the Gain or loss on the sale of investments drop-down, then click Capital gain or loss (Form 1099-B).
Click Add Another Sale, enter the basic transaction details, and in the Other details section, click the box I need to make an adjustment.
In the field that shows, enter the adjustment amount and select code Q - Qualified small business stock in the drop list.
Click Continue and select any uncommon situations, if applicable.
On the Investment Sales - Qualified Small Business Stock screen, verify the information and click Continue.
Desktop
From within your TaxAct return, click Federal.
Click the Investment Income drop-down, then click the Gain or loss on the sale of investments drop-down, then click Capital gain or loss (Form 1099-B).
Click Add Another Sale, enter the basic transaction details, and in the Other details section, click the box I need to make an adjustment.
In the field that shows, enter the adjustment amount and select code Q - Qualified small business stock in the drop list.
Click Continue and select any uncommon situations, if applicable.
On the Investment Sales - Qualified Small Business Stock screen, verify the information and click Continue.
Verify Amount
To verify the amount, follow the steps below.
Online
Dashboard
From within your TaxAct return, click Income.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Under My Income you should see Collectible Gains or Losses.
Click Edit and follow the interview to ensure that the amounts are correct.
Classic
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Investment Income drop-down, click the Gain or loss on the sale of investments drop-down, then click Collectibles gain or (loss) (28% Rate Gain Worksheet).
Continue with the interview process until you reach the screen 28% Rate Gain Worksheet - Schedule D Collectible Gains or Losses.
Verify whether the amount entered for Section 1202 exclusion reported on Form 8949 is correct.
Desktop
From within your TaxAct return, click Federal.
Click the Investment Income drop-down, click the Gain or loss on the sale of investments drop-down, then click Collectibles gain or (loss) (28% Rate Gain Worksheet).
Continue with the interview process until you reach the screen 28% Rate Gain Worksheet - Schedule D Collectible Gains or Losses.
Verify whether the amount entered for Section 1202 exclusion reported on Form 8949 is correct.
Your request has been submitted
You have been successfully added to the TaxAct Do Not Sell list.