DaveF1006
Expert Alumni

Get your taxes done using TurboTax

Typically, benefits paid from the ESOP to the participant will be taxed at ordinary income tax rates when those shares are bought back at retirement, death, or separation from the company. These were granted to you at the time they were issued under the condition that you stay with the company.

 

Unless, you traded the stocks and received a 1099B for the sale, this is ordinary income.

 

@shubham-123 

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