For TurboTax for Tax year 2022 (filed in 2023), ESPP Ordinary Income can be entered on line 5 of the Wages, etc. Wks form. This line 5 mentions it’s for “Ordinary income from employer stock transactions not reported on Form W-2”. This value ends up in line 1h (Other Earned Income) of the 1040 form.
You can get to this worksheet by doing the following:
1) Choose View->Forms
2) Open the 1040 Form
3) Double-click into box for line 1h (Other Earned Income). A 1040 Wks form opens up.
4) In 1040 Wks, double-click into box for line 1h (Other Earned Income). The Wages, etc. Wks form opens up
5) In the Wages, etc. Wks form, right click in box on line 5 to bring up a pop up menu and choose Override (It wouldn’t let me type directly in until I override). Now, you can enter the totals for your ESPP Ordinary Income not reported on W-2.
Remember to adjust your gain or loss on form 8949 for your ESPP transactions.
