Here's how to enter a Qualified small business stock exclusion (Section 1202):

Although the below steps involve editing an existing stock sale entry, you may do well to delete the sale and start fresh.

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

If you qualify, you'll see a “Net adjustments to gain.” (See the attached screenshot below. Click to enlarge.)

Specialized Small Business Investment Company (SSBIC)

If you invest the proceeds from the sale of publicly traded securities in an SSBIC, you may be able to roll over, or postpone, the gain on your securities sale, if you qualify.

Qualified small business stock

When you sell qualified small business stock for a gain, you may be able to postpone paying income tax on the sale if you used the proceeds to purchase other qualified small business stock under section 1045.

If you did not buy other qualified stock, you may qualify to treat 50%, 60%, 75% or 100% of the gain as tax-free under section 1202 if you held the stock longer than five years.

Section 1244 Stock

Losses on sales of section 1244 stock qualify for special treatment when sold. Instead of a capital loss, section 1244 losses are considered ordinary losses and can reduce your taxable income up to $50,000, or up to $100,000 if you're married filing jointly. (No more than $3,000 of net capital losses can be used to reduce other income each year.

This answer was provided by 

MichaelDC

These instructions are outdated, and the screenshots you're referencing don't show up.

When I click the 1099-B link I don't see "Summary of All Accounts", I see "Your investment sales summary."

When I click edit there, there is no "guide me step by step flow" or any "My sales involves one of these uncommon situations" links.

Can you please share some instructions for the latest version of Turbotax online?

PLEASE UPDATE INFO ON THIS ARTICLE!

I'm having the same issue. I opened a case with support but they were unable to help. 

i too have tried this countless times - it is really frustrating - let us know if you get anywhere with your case

You're correct, QSBS stock sales are excluded per section 1202.  Normally it would be reported on form 1099-B, but if you didn't receive one, here is what to do:

1. On the Federal tab, search for 1099-B and hten Jump to form 1099-B.
2. Select "this is a small business stock"
3. When it asks you if you want to adjust the cost basis check the top box that says "Help me figure out my cost basis" 
4. Go through steps.
5. At the end, look for the "qualified small business 1202 exclusion" options

Here are screenshots:

@randomuser2249

i worked with a live expert on this - I was able to resolve the problem by deleting my investment and then re-adding it, but making sure to select the option for multiple sales 3+ and to put in the single individual sale. This then allowed me to set dates and options regarding section 1202

This once again no longer seems to work in 2022, no matter now many times I delete and try different flows for entry I never get the option to mark a stock as 1202

Yes, you may report the sale of Qualified Small Business stock eligible for Section 1202 exclusion as an investment sale following these steps in TurboTax Online 2021. Please note the Learn More links throughout this process that may answer questions you have about a particular choice.

1. Go to Federal >> Income >> Stocks, Cryptocurrency Mutual Funds, etc.
2. Click Start or Add more sales
3. Choose Stocks, Bonds, Mutual Funds (1099-B)
4. Choose I'll type it in myself and enter Bank or Brokerage name
5. Choose No for Employee Stock
6. Choose No (1-3) for More than three sales
7. Choose Yes for Other types of investments (this is most important for section 1202)
8. Choose Yes for Did you buy every investment?
9. Choose One-by-one for How to enter
10. Under Sales section title, choose Long term or Short term, did not receive 1099-B
11. Under Type of investment, choose Stock (non-employee)
12. Enter dates, proceeds, and basis for your sale
13. Under Let us know if any of these situations apply to this sale, choose This is a small business stock (see screenshot)
14. Under What kind of small business stock did you sell? choose Qualified Small Business (section 1202) (see screenshot)
15. Continue to back to the Investment Sales Summary page.

These instructions worked except I only see Exclusion 1245 not 1202. How do I find 1202 on that last screen?

Same issue as the above poster - I only see exclusion 1045 and need 1202

Desperately need support with this same issue!  The above walkthroughs do not work.  No option for a 1202 sale shows up.  

@PatriciaV : Please update this!  the 1202 selection option does not show up, even when I follow the instructions as written.  

Hey this happened to me too. Turns out I was entering my stock purchase date incorrectly.

The time between you purchasing and selling stock must be at least 5 years in order for it to be QSBS eligible, which is likely why that option isn't showing up for you