This changed again in TurboTax 2023 and this is very buggy and should be fixed since otherwise risk is people will underpay and get issues with the return. Here's the process I found (similar hack as before):
- Do not mix ESPP and stock sales in 1 brokerage/service since then I got no question anymore whether this was on W2 (despite it knows which sales were ESPP, that's simply a bug sadly)
- Use separate entry for ESPP sales only:
- 'Add more sales', then choose 'Stocks, Bonds, Mutual Funds',
- Skip import & enter financial info
- Answer 'Yes' for 'Do these sales include any employee stock', after that choose entering one by one
- Choose for 'What type of investment did you sell?': 'Employee Stock Purchase Plan'. Remaining fields enter as reported on 1099B (not supplemental but main section).
- Select 'The cost basis is incorrect or missing on my 1099-B (even though it's not)
- Next page choose 'I can't find it and need help' and select continue on next page
- Select W2 (even if not reported there)
- Then enter the ESPP discount and 3922 info
- Click continue 2x, then it will show 'Let's review your employee stock plan results' and deselect 'Reported on W-2' in in your case it's not reported on W-2
