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Stopped working and 6 months later cashed in employee stock. It asks if the sales include employee stock do i say yes or no? i was not an employee at the time of sale

 
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2 Replies
RobertG
Expert Alumni

Stopped working and 6 months later cashed in employee stock. It asks if the sales include employee stock do i say yes or no? i was not an employee at the time of sale

It does not matter if you were not an employee at the time of sale.

 

You only say yes to the question 'Does the sale include employee stock' if the sales include the following kinds of stock;

  • Employee stock purchase plan (ESPP)
  • Restricted stock awards (RS)
  • Restricted stock units (RSU)
  • Nonqualified stock options (NQSO)
  • Incentive stock options (ISO)

These are types of employee stock purchased at a discount.

 

If the stock was from an employee stock ownership plan (ESOP) say no.  

  1. When you are asked What type of investment did you sell?
  2. You should select 'Stock (non-employee)', and enter the remaining information on that page; then select 'continue'.
  3. The next screen will say 'Let us know if any of these situations apply to this sale'. 
  4. Select 'This was a stock to an employee stock ownership plan (ESOP) or eligible worker–owned cooperative (EWOC).' 

 

 

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Stopped working and 6 months later cashed in employee stock. It asks if the sales include employee stock do i say yes or no? i was not an employee at the time of sale

Thank you but after taking a really good look at the 1099B it states Employee Stock Purchase Plan on it.  

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