Your employee stock discount counts as ordinary income in the year you exercise (purchase) your shares, on your W-2.
It counts as Capital Gain in the year you sell them, reported on a 1099-B. But since the broker doesn't know what you paid for your shares when purchased, the Cost Basis is often incorrect on the 1099-B.
To find the correct cost basis, you need to know what your discount amount was (from W-2), and divide that by number of shares purchased. Add that amount to the Exercise Price per share, to arrive at Cost Basis per share for reporting the 1099-B sale. The Exercise Price is reported on Form 3922 or 3924.
For RSU's you may have paid nothing for your shares. Divide the amount on your W-2 by number of shares, and that's your Cost Basis. Yes, this is a bit different than calculating cost basis for ESPP shares.
Otherwise, you will be overstating your Capital Gains. Once you know your Cost Basis, enter in TurboTax as a regular stock sale (not employee stock).
Here's more info on Employee Stock Purchase Plans and RSU's and Taxes which will help clarify this for you.
@BenTen
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