Get your taxes done using TurboTax

ThomasM125 · ‎March 15, 2021

The information on form 3922 would be helpful to insure that you account for your employee stock purchase plan (ESPP) share sales properly. However, you may be able to account for the sale by another method.

Often, the ordinary income component of a ESPP sale ( if applicable) will be reported on your W-2 form in box 1 with a notation in box 14. If so, you can normally add that income component to the cost basis reported on your form 1099-B, and you will end up with the correct income reported on your tax return.

So, you can enter the form 1099-B as a normal investment sale, but adjust the cost basis to account for the ordinary income component of the sale, which is on your W-2 form. Normally, the cost basis is wrong on the 1099-B, since it doesn't include the ordinary income that is reported on your W-2 form.

You will see an option to adjust the gain reported on your form 1099-B when you enter the proceeds and cost basis in TurboTax, as follows:

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"