topic Re: ESPP plan - Tax forms? in Get your taxes done using TurboTax

ESPP plan - Tax forms?

ysharma — Wed, 09 Apr 2025 23:54:41 GMT

Hi,

I received a form 3922 from my employer for stock purchase plan but I don't need to file it.

I also have an espp plan where I contribute some amount for company stocks from my salary. I have not sold the stocks till now. Should I be receiving any tax form from that account as well? I haven't recieved any form to be filed related to ESPP.

Re: ESPP plan - Tax forms?

AmyC — Thu, 10 Apr 2025 00:00:42 GMT

You must keep each 3922 and save them along with your w2s. These forms create your basis in the stock. When they are sold, you will need to refer back to determine the correct basis for your stock. This is your responsibility, not the brokerage.

I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your carryover information, and proof of your basis in your various investments. You must keep tax records from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses, carryforwards, and basis. This can be a digital or paper notebook.

Reference: Employee Stock Purchase Plans

Re: ESPP plan - Tax forms?

ysharma — Thu, 10 Apr 2025 00:03:01 GMT

Yes thanks,

I have saved it with my W-2. My question was about whether I should have received some specific form for my ESPP account to file with my taxes, just like I got 1099-INT and 1099-DIV from my brokerage.

But I received nothing related to my company stocks for ESPP plan.

So if I shouldn't expect such a form, that's great.

Re: ESPP plan - Tax forms?

KrisD15 — Thu, 10 Apr 2025 00:07:26 GMT

There is no tax form you need to enter when you purchase the stock, the discount is in your wages.

When you sell, the basis will be the discount that was included in income plus the strike price you paid.