Does Turbo Tax Premier for Investments adjust ESPP cost basis to avoid double taxation in the case of a disqualifying disposition?

dsilvei · ‎June 7, 2019

DDollar · ‎June 7, 2019

Yes.

TurboTax has an interview for the sale of ESPP stock. Do not import you Form 1099-B with the sale of the ESPP stock. Instead, enter it yourself. To do so in TurboTax, (if using Online be sure you are logged in to your return):

Click on Search
Type “1099-B“ in the Search Window and hit Enter
Click on Jump to 1099-B
Click on + Add More Sales
Answer Yes to: "Did you get a 1099-B or a brokerage statement for these sales?"
Click on "I'll type it in myself"
Enter your Brokerage name
Answer Yes to "Do these sales include any employee stock?"
Click the box to indicate the number of sales.
Click Continue on screen with "We strongly recommend entering your sales from 'Your Broker" one at a time"
Continue on the screen with "Now we'll walk you through entering the info on your 'Your Broker' 1099-B" and enter the details of your stock sales.

[Edited 3-26-2020]

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lb93 · ‎March 7, 2020

the calculation of adjustment of cost basis is correct. However I am no longer employed at that company so no W-2. It is not including the discounted amount on 1040 line 7. I upgraded to premier before entering and used the step by step and entered the info from the 3922. I realize I can override that but I didn't pay for premier to hack it myself.

ThomasM125 · ‎March 16, 2020

I ran a calculation through TurboTax and was able to get the ordinary income component to appear on line 1 of form 1040. You should have seen both of these screens when entering your ESPP transactions:

If not, when you entering your form 1099-B information, you need to click on the "Guide me step by step" option:

And then make sure you enter the correct information regarding your ESPP stock sale.

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BradsTaxes · ‎February 1, 2021

I'm having a difficulty that I am not able to enter the ESPP info along with the stock sales. From the screen-shots you have, the "Guide me step-by-step" is missing. I have TurboTax Premier.

I'm comparing side by side with TurboTax 2019 and this seems to be where things are going wrong. I enter the ESPP information, yet it doesn't appear to update the Cost Basis.

Are others hitting this too?

Note that your title says "100.0000 shares from []" (the stock name is missing compared to 2019). For me, I see " shares from ". Where the number of shares and the company name are both not making it into the guide.

Thank you!

Does Turbo Tax Premier for Investments adjust ESPP cost basis to avoid double taxation in the case of a disqualifying disposition?

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