ESPP Stock Sales - when you no longer work there?

[doin_taxes]

My spouse purchased stock under an ESPP program many years ago. The stocks were transferred into an individual account when they left the company - again, many years ago (over 10). The last two years, we sold some.

1) I reported these stocks on our TurboTax as ESPP sales. Is that correct?

2) If that is not correct, then what forms do I need change when doing amended returns?

[ToddL99 · Accepted solution]

As long as you entered the correct "cost or other basis" when you reported these sales, it doesn't matter whether you identified the shares as coming from an ESPP or not - there is no need to amend any returns where the sales were reported.

Once your spouse left the company and transferred the stocks into a regular brokerage account, they are just treated as regular stock holdings. Since they were purchased at a discount through an ESPP, it is your responsibility to keep track of the actual cost.