Get your taxes done using TurboTax

Just to clarify, in which form are you getting this question? ESPP discount "is" earned income regardless of whether it is included in the W2 wages or not.  It would be reported in this screen

You would start off by going into Personal Income/

then all the way at the bottom, hit Misc. income

then "Other income not already reported on a Form W2 or 1099

then on next screen, Did you receive "Other Wages," hit yes

then hit Continue, continue, continue until you get to this screen

Next screen, enter Source of Other Earned income, select "Other'

and then back to the 1st  screen

 in which you'll put the Description which is Espp discount and amount.

Then click "Done"