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The discount element in an ESPP disposition is reported on line 7 of form 1040 as Wages.
This is considered earned income. You "earned" the discount by working at the company which granted you the ESSP shares. And this income qualifies you for a contribution to a Traditional IRA (if you are younger than 70 1/2) or a Roth IRA.
The discount element in an ESPP disposition is reported on line 7 of form 1040 as Wages.
This is considered earned income. You "earned" the discount by working at the company which granted you the ESSP shares. And this income qualifies you for a contribution to a Traditional IRA (if you are younger than 70 1/2) or a Roth IRA.
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