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<<I read thru the FAQ regarding the Cash in lieu situation.>>

Great...then you should have found that you actually SOLD 1/2 share, and you'll want to allocate your basis of the original shares over that 1/2 share and report the gain/loss on Schedule D. You'll have to use the information provided by the company in order to correctly compute your basis.

<<In my situation, Ameritrade classified it under 1099-DIV instead of 1099-B?>>

Doesn't make any sense to me...but I can't see any of the documents.

<<I had 13 shares of T
Split 3 for 2
Now I have 19 shares.>>

But you originally had 19 1/2 shares...and the company purchase those 1/2 shares from you. So this transaction should have been reported on Form 1099B...directly from the company. At least if my math is correct.

<<Do I just report it under Dividends?>>

Do what you want...but I still don't think it's correct based upon what you are telling me.

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