Get your taxes done using TurboTax

I noticed that I see that option in the desktop Home and Business version of TurboTax but not in the Premier version of the program. So it may not be available in the version you are using.

I found the option you are referring to when I entered an investment sale.  I came to a screen that said What type of employee stock is this and I chose the answer Employee stock purchase plan (ESPP). Then I chose the job the stock came from. Eventually I came to a screen that said Here's all the investment accounts we have so far, on which is listed the investment sale I entered. On the next screen entitled Your Employee Stock Plan Results was listed the ordinary income component of the sale and I was asked Is this income included in wages? Here are some screen shots:

If the ordinary income component your ESPP sale is listed on your W-2 form, as it should be, then you just need to be sure that it is factored into your basis as reported on your Form 1099-B, as an increase in the cost basis. If not, you can adjust the cost basis after your enter the Form 1099-B, there is an option for that in the program. You don't need to indicate in TurboTax that it is included on your W-2, as the default assumption is that it is.

If the ordinary income component of the ESPP sale is not listed on your W-2 form, you can enter it as Other Income as follows:

1. Choose the Federal option on your left menu bar
2. Choose Wages & Income
3. Find Less Common Income
4. Choose Miscellaneous Income, 1099-A, 1099-C
5. Choose Other reportable income
6. Answer Yes to the question Any Other Taxable Income?
7. Enter a description and amount of the income

You can view your form 1040 and schedules 1 to 3 while working in the online version of TurboTax by following these steps:

1. Click on Tax Tools in the left menu bar
2. Click on Tools
3. Look under Other Helpful links….
4. Choose View Tax Summary
5. Look in the left menu bar and choose Preview my 1040
6. Scroll down the page to see form 1040 and schedules 1 to 3