Normally, I do use Turbotax to prepare my taxes. Bacause of this stock issue, I went to a nationally known tax preparation company and this company advised me that the gain should be reported as a capital gain on schedule D. This tax preparation company could not explain to me why the proceeds, cash and stock, would be reported as a capital gain. That would mean I would owe federal and state taxes. I don't know if what they told me is correct. IRS Pub 550 on investments doesn't address in detail how to report the proceeds of a merger where stock and cash are involved. Based on the estimates of what I would likely owe for federal and state taxes, I decided to file for extensions on my returns. This was based on the advice of a CPA I consulted. I bumped up the amounts for what I would owe for federal and state taxes and submitted vouchers/forms with them. My taxes will be paid by April 15 and my state's deadline. I am going to have a CPA review my brokerage statements and do my tax return. If I owe, I owe. At least at this point, I have some breathing room to get my returns filed.
I hope what I've written here saves you some grief. In my situation, I think it's best to have a CPA go over this stuff in person.
