How do I report the sale of QSB (Qualifying Small Business) stock? I entered my 1099-B and checked the box for "small business stock" but the exemption was not applied.

Try this:

1. With your return open, search for 1099-B (upper- or lower case, with or without the dash) in your program's search box.
2. Click the Jump to 1099-B link in the search results.
3. On the Did you sell any investments? screen, answer Yes.
4. If you land on the Summary of All Accounts screen instead, click Edit 
5. “If you have additional info about this sale, you can enter it on your own, or we can guide you.”, Select Guide me step-by-step (See the attached screenshot below. Click to enlarge.)
6. Click My sale involves one of these uncommon situations. (See the attached screenshot below. Click to enlarge.)
7. On Choose the type of investment you sold, choose "Stock" (See the attached screenshot below. Click to enlarge.)
8. Review Some Basic Info About this Sale, Click Continue
9. Click through several screens
10. On "Do Any Special Situations Apply to This Sale?", select "Small business stock" click Continue  (See the attached screenshot below. Click to enlarge.)
11. On "What Kind of Small Business Stock?" select the appropriate section 1202 type, click Continue
    Continue through the interview

This question was previously answered by ColeenD3 Employee Tax Expert