Get your taxes done using TurboTax

ESPP means employee stock purchase plan. It is stock in the company you work for that you purchase typically at a discount. The discount you receive is taxable when you sell the stock as wage income. As such, the discount you received when you purchased the stock is reported on your W-2 as wage income in the year you sell the stock. When you report the sale as reported on your Form 1099-B, the cost basis usually needs to be adjusted to compensate for the income reported on your W-2 form, otherwise you may be double taxed on it. That may be the adjustment you a speaking of. When you enter ESPP stocks sales in TurboTax, you need to indicate that when asked and you will be asked questions to determine the correct tax treatment of the stock sale.

A RSU is a restricted stock unit. It is company stock the is typically given to you at no cost or at a minimal cost. When you receive ownership of the stock the value of the stock less what you paid for it is entered on your W-2 form as wage income. Also, it is subject to social security and Medicare tax, so some of the shares are typically sold to pay your share of those taxes. So, you will need to report those sales on your tax return from the Form 1099-B that will be generated. Once again, you need to indicate in TurboTax that you sold RSU's so the program will ask you the correct questions to insure the income is taxed properly. You do this when asked "What type of investment did you sell?"