KrisD15
Expert Alumni

Get your taxes done using TurboTax

Normally the "spread" (discount) is reported in Box 1 of your W-2 the year the stock is sold and the rest is Capital Gain or Loss.

 

If your discount was 5,000 and they reported 2,000 for 2022 and 3,000 for 2023, that would still be 5,000 total so I don't see it taxed twice although it still might be incorrect. 

 

Are you sure the stock was not sold in two separate transactions? What year did you claim the Capital Gain (or loss) ?

 

Technically, your employer should have issued a 2022 W-2C (Corrected W-2) instead, in which case you would need to amend your 2022 return. Your employer might need to amend their records as well if they didn't claim that as wage expense in 2022. 

 

It seems that you're saying you earned the 3,000 reported on your 2023 W-2 back in 2022. 

Your employer is reporting it as earned in 2023. 

It's up to you and your employee to decide which year the income was earned, and that would have been the year of the sale. 

 

Check your Form 3922 to compute the discount. 

If you sold all the stock in 2022, the income reflecting the discount should have been reported on your 2022 W-2 .

 

For Tax Year 2022, did you report the 3,000 not on your W-2 as Other Income? If that is the case, please continue the question and give us those details. 

 

 

 

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