Not sure whether the ordinary income amount is being calculated correctly. According to ESPP tax rules, you may be subject to ordinary income tax and/or long-term capital gains tax for a qualifying disposition. The rules say that you will pay ordinary income tax on the lesser of:
- The discount offered based on the offering date price, or
- The gain between the actual purchase price and the final sale price.
What was the sales price for the ESPP shares you sold? Because this was a qualifying sale, your W-2 appears to be reflecting the first option mentioned above, that is the discount amount which would be the lesser of the two options.
@Anonymous
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