Where do I enter Form 3922?
Your employer will send you Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c), if you purchased ESPP stock during the tax year.
If you didn't sell any ESPP stock, don't enter anything from your 3922. Keep it with your tax or investment paperwork, in case you need to correct the cost basis when you later sell the shares.
Once you sell the shares, the brokerage firm that handles your ESPP should send you Form 1099-B, which reports the sale. If the cost basis in box 1e is wrong, here's where you can use your 3922. Here's how to enter your 1099-B in TurboTax:
Navigate to the 1099-B section:
TurboTax Online/Mobile: Go to the Form 1099-B screen under Income in the Federal section.
TurboTax Desktop:
Go to Federal Taxes.
Go to Wages & Income.
Under Wages and Salaries, select Start or Update next to Interest and Dividends.
Follow the onscreen instructions to import or enter your 1099-B.
Do I need to enter ESPP transactions?
Only if you sold stock that was purchased through an ESPP (Employee Stock Purchase Plan). In that case, the sale will be reported on Form 1099-B, which you should receive from your brokerage around tax time (early February is typical). You should have received Form 3922 when you exercised your stock options.
Enter your 1099-B to report the sale on your tax return and we’ll prompt you for the rest. Have your Form 3922 handy because you’ll need information from there to adjust your basis to properly report the gain or loss.
If you only purchased (but didn't sell) ESPP shares, there's nothing to report.
