attanon14
Returning Member

How to report ordinary income of ESPP shares held by decedent

How and where do you report the 15% discount on ESPP shares held by a decedent when it is not included in their final W-2?  The shares were not sold but the death triggered a qualifying disposition, and the 15% discount is supposed to be included in box 1 of their final W-2 as compensation income, reportable on their final return.  I have tried the suggestions in the below thread but these all assume the shares were sold and that proceeds and cost basis need to be entered.

 

https://ttlc.intuit.com/community/taxes/discussion/where-is-the-question-on-whether-espp-ordinary-in...