You do not deduct the amount. Instead add the amount included in your pay. This is your cost basis at awesome Tax Expert @DianeW777 said.
You would record the sale using $0 as the sales price and the amount added to your W-2s as the cost basis.
This will give you a capital loss. You can use this to offset other capital gains and deduct up to $3,000 per year ($1,500 if married filing separate).
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