The state of Louisiana held the value of stock that I lost and return the value of the stock to me but not interest. How do I report this as income?

Stocks pay interest? I thought they only paid dividends. More than likely you paid taxes already on the stock you purchased, in the year you purchased it. So if all you got back was your initial purchase price, you have no gain to report or pay taxes on.

@Carl, Andy probably means that LA sold his stock in a prior year (say 2014) and held the money until 2017 when Andy claimed it. But LA wouldn't pay interest on the proceeds for the years it held the money for him.

You might get a 1099-B from LA for it.

There are two problems as I see it.

1. you need to know your basis (what you paid for the stock plus any reinvested dividends). you can use $0 but that would increase your tax.
2. what year is the proper year to report the gain? Usually that is the year sold. LA would have sold the stock when they got it. States don't hold stock in unclaimed property. So my question is did you own capital gains in that year or the year you received the funds.

If you get a 1099-B from LA I would report it in that year. Just enter it as a stock sale when TT asks about that. 

If you don't get a 1099-B or it is a big gain, I would seek professional guidance from a CPA, enrolled agent, or tax attorney.