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Get your taxes done using TurboTax
The proceeds from the disqualifying disposition are already included in your Box 1 Wages amount and the taxes withheld are also reported on your W-2. Since Box 14 does not have standardized codes, there is nothing that differentiates the ESPP sales from your regular wages to the software.
You are not being taxed twice on this as long as the W-2 is reported accurately. The place where people potentially run into trouble is when they get a 1099-B that reports the sale of ESPP stock because sometimes the basis is under-reported. There should be supplemental information on the 1099-B and your employer should provide Form 3922 which will have the adjusted basis that you would want to report.
‎February 7, 2022
6:22 AM
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