Box 14 on a W-2 can be used for anything the payroll department wants to use it for.
Some codes are picked up by tax software but most are not relevant, not recognized, and not used. Your Box 14 may be reporting to you what your employer added to your wages in Box 1.
For the NON-QUALIFYING SALES:
SQD is usually used in Box 14 on a W-2 for Non-Qualifying sales.
If you were still employed when the ESPP was sold, the "Bargain Element" (Discount) for the Non-Qualifying sales should have been included in your wages in Box 1 on your W-2. That income will not be claimed by you a second time. That number may also have been reported in Box 14 code SQD on your W-2 as an FYI to you.
For the QUALIFYING SALES:
SDD usually stands for State Disability Insurance, but it could have something to do with your stock sales. Make sure you know which it is. TurboTax cannot tell you.
If the price on the shares that you purchased (and held to be considered "Qualifying Sales") increased between the Offering date and the Exercise Date, the discount (or the profit on the sale whichever is less) is reported as income.
This only for Qualifying Stock that increased between Option and Excersise.
The Capital Gain is what is reported on your 1099-B. The capital gain (or loss) is not reported on your W-2.
Be sure to complete the interview after entering your 1099-B.
Here is a TurboTax link with more information
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