ESPP Stock Sales - when you no longer work there?

doin_taxes · ‎March 4, 2021

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 · ‎March 10, 2021

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.

View solution in original post

ToddL99 · ‎March 10, 2021

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.