Get your taxes done using TurboTax

 If this is from an Employee Stock Purchase Plan (EESP) you will need to use the TurboTax Desktop version. If it s incentive stock options (ISOs) then you can complete the transaction in TurboTax Online.

ISOs are reported differently depending on whether you bought and sold in the same year.  I will provide the instructions here for same year.

Cost basis is the combined total of the exercise price and the difference in fair market value on the date of exercise (amount included in your W-2), to arrive at the total cost of the stock sold.

You may have received a Form 3922 or Form 3921 from your employer.

Information needed to complete the return:

• Is this a statutory or non-statutory exercise? (Employer can provide)
  • If the employee is no long employed at the company at the time of exercise it is non-statutory.
• Form 3921 provided by the employer or a substitute document with the necessary information. See the Boxes numbers below.
  1. Date option granted
  2. Date option exercised
  3. Exercise price per share
  4. FMV per share on exercise date
  5. Number of shares transferred

TurboTax Online: Some information below is listed so that you do not select the wrong options as you enter your sale.

1. Income > Investment Income
2. Select Start or Select 1099-B sale even though you don't have the form
3. Select 'No' I bought shares of ISO stock in 2020 (if bought and sold within the same tax year it would be reported as a normal investment sale from your Form 1099-B- do not select ISO)
4. Select 'Yes' or 'No' depending on whether your received Form 3921 > Enter the information requested (You may not have this question if you report the sale without selecting ISO as noted above).
5. Select 'Done

The actions that need to take place in TurboTax Desktop version are shown below.  The following link is helpful using Situation 1 (in the link). ESPP is a more detailed transaction.

• Employee Stock Purchase Plans

The steps to this screen are entered below for your convenience.

1. Open your TurboTax account (Desktop Only)
2. Scroll to Investment Income > Stocks, Mutual Funds, Bonds, Other > Update > Edit beside the ESPP stock sale
3. Continue > Edit > Enter the requested details for this stock > Choose the Sale Category > Continue
4. Continue or review your information on Less common items > Done
5. Yes stock was acquired through employee stock plan > No do not remember this answer for all sales > Continue
6. Select Employee stock purchase plan (ESPP) > Continue > Select Company > Enter number of shares sold > Select owner
7. Continue > Select I have all my info ..... > Continue > Enter your information under short or long term as applicable
8. Notice the compensation is shown at the bottom > Continue until you come back to the summary screen for this ESPP sale 
9. Done > Done > Done > Your Employee Stock Plan Results screen appears with the selection for the W- 2 elect Yes or No based on your situation 
10. See the images below.

This should allow you to complete this transaction and finish your tax return.