For example, I received some ESPP stocks in 2023. This means that in my 2023 W-2, the total amount in Box 1 should include the discount portion for the ESPP. Let's say I received 100 stocks, each with a $10 discount. If Box 1 shows $5,000, then $1,000 of that amount comes from the ESPP discount. When I sell the ESPP stocks in 2033, I only need to include the capital gain, because the discounted part was already taxed as ordinary income in my 2023 tax return. Is that how it works?
@MarilynG1
