https://ttlc.intuit.com/community/taxes/discussion/espp-taxation/01/3242150#M1196953 <P>When I sell ESPP shares, part of the gain is treated as earned income rather than long term capital gain. I gifted my ESPP shares (older than 2 years) to my son. When he sells these, does he realize earned income? Can he contribute this income to Roth IRA, for example, (contributions require earned income)? Anyway, it would be weird to state that my 1 year old son got earned income, wouldn't it?</P><P>&nbsp;</P> Wed, 11 Feb 2026 06:38:42 GMT 000000000000 2026-02-11T06:38:42Z https://ttlc.intuit.com/community/taxes/discussion/espp-taxation/01/3242150#M1196953 <P>When I sell ESPP shares, part of the gain is treated as earned income rather than long term capital gain. I gifted my ESPP shares (older than 2 years) to my son. When he sells these, does he realize earned income? Can he contribute this income to Roth IRA, for example, (contributions require earned income)? Anyway, it would be weird to state that my 1 year old son got earned income, wouldn't it?</P><P>&nbsp;</P> Wed, 11 Feb 2026 06:38:42 GMT https://ttlc.intuit.com/community/taxes/discussion/espp-taxation/01/3242150#M1196953 000000000000 2026-02-11T06:38:42Z https://ttlc.intuit.com/community/taxes/discussion/re-espp-taxation/01/3242313#M1196954 <P>If he shows earned income then he can use it to base Roth contributions on, yes. &nbsp;</P> <P>&nbsp;</P> <P>His unearned income will trigger a different tax rate if it's high enough, though. &nbsp;<A href="https://www.irs.gov/taxtopics/tc553" target="_blank">Read about the kiddie tax here.</A></P> <P>&nbsp;</P> <P><SPAN style="background: var(--ck-color-mention-background); color: var(--ck-color-mention-text);"><a href="https://ttlc.intuit.com/community/user/viewprofilepage/user-id/5495631">@000000000000</a></SPAN>&nbsp;</P> Wed, 06 Mar 2024 21:48:03 GMT https://ttlc.intuit.com/community/taxes/discussion/re-espp-taxation/01/3242313#M1196954 RobertB4444 2024-03-06T21:48:03Z