Get your taxes done using TurboTax

It is hard to help you without seeing your screen to see exactly what is going on.

I ran up some numbers as follows, and the correct cost basis and wage income was reported in TurboTax. First, I reported the form 1099-B information as listed on the form as follows:

Then I chose the "I'll enter additional info on my own" option and I saw this screen where I entered the correct cost basis:

Then, Turbotax calculated the correct gain as follows:

The discount should be reported on your W-2 form and will show up as wage income on your tax return.

So, if you had a $500 discount and made $1,000 on the sale, you would see a capital gain of $1,000 and wage income of $500 on your tax return.

I suggest you contact a TurboTax agent so they can do a screen share with you so you can walk through your entries with a professional real-time. You can contact TurboTax as follows:

 https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632