topic In View, Forms go to ESP Comp Wks in Get your taxes done using TurboTax

Where is the question on whether ESPP ordinary income is included on W2

pilchino99 — Tue, 04 Jun 2019 21:30:32 GMT

I know there is a question asking whether the ESPP ordinary income was included on the W2 or not, but can't find it anymore, and I need to change the answer. How do I navigate to that question?

You don't see that question while entering trade informat...

TomYoung — Tue, 04 Jun 2019 21:30:33 GMT

You don't see that question while entering trade information or editing trades you've already entered. That question comes up only if you used the "ESPP" step by step interview and only when you're completely done entering trades and click the "Done" or "Continue" button that takes you further into the "Stocks, Mutual Funds, Bonds, Other" interview. You must work all the way to the very end of the interview.

Tom Young

Go to the ESP Comp WKS. Uncheck the "yes" box and check t...

wesher — Tue, 04 Jun 2019 21:30:34 GMT

Go to the ESP Comp WKS. Uncheck the "yes" box and check the "no" box. The amount will then be transferred to line 7 1040

How do you get to this worksheet?

nick212 — Tue, 04 Jun 2019 21:30:36 GMT

How do you get to this worksheet?

In View, Forms go to ESP Comp Wks

wesher — Tue, 04 Jun 2019 21:30:37 GMT

In View, Forms go to ESP Comp Wks

I originally got to the wks by right clicking on 1040 lin...

wesher — Tue, 04 Jun 2019 21:30:39 GMT

I originally got to the wks by right clicking on 1040 line 7, clicking "data source", which led me to the Wages, Salaries, and Tips Wks. Then I data sourced line 9 d "Ordinary income..not reported on Form W-2" That led me to Employer Stock Compensation Income Wks Part II Column (g) Total.

But how do you get to the ESPP step by step interview? ES...

LRC11 — Tue, 04 Jun 2019 21:30:40 GMT

But how do you get to the ESPP step by step interview? ESPP is not listed under any income category.

You get to that in Forms View. Tom Young says that you ca...

wesher — Tue, 04 Jun 2019 21:30:41 GMT

You get to that in Forms View. Tom Young says that you can get to that question in step by step, but I never got that far.

yeah, it is always difficult to get the step by step. Luc...

praveenswadi — Tue, 04 Jun 2019 21:30:43 GMT

yeah, it is always difficult to get the step by step. Luckily this time I got it. phew..
@LRC11 I used the online version,
- Click on Federal in the left navbar
- Click on the Wages & Income at the top
- Choose on 'All income'
- Click on Show More for  'Investment Income' with subtitle '1099-B or broker statements'
- Click on Start for Stocks, Mutual Funds, Bonds, Other
- Click on Yes for (Did you sell any investments in 2017)
- Click on Yes for question - Did you get a 1099-B or brokerage statement for these sales?
- I chose "I'll will type it myself"
- Choose a broker
- In the section 'Tell us about your 'broker' 1099-B, I chose "I'll enter one sale at a  time"
Add all the info and click the button "I'll enter additional info on my own"
- In the screen Tell us about your situation
choose I have sales from an Employeee Stock plan,
(If the above  screen does not show up choose the 'Guide me' option instead of "I'll enter additional info on my own"
- Choose ESPP on the next page
- Click continue on next page
- showed me the screen 'we just need a few more details..'. Choose 'Walk me through...' Click continue
- Enter discount, click continue
- asks if you have form 3922 (I did get it)
- Fill in the details, click continue
After couple of screens, it asked me the question 'Is this income reported on W2' Hallelujah!

Honestly, I tried creating another account following the same steps, and it is not showing up anymore. :shrug:

Update : as @TomYoung suggested... You must work all the...

praveenswadi — Tue, 04 Jun 2019 21:30:44 GMT

Update : as @TomYoung suggested... You must work all the way to the very end of the interview.
Literally, to the end where you say 'Done' to all. Then the screen comes up saying :
+-------------------------------------------------------------
| On XXXX's Form W-@ (or pay stubs) from Company X, check that the following employee stock plan
| amounts were included in box 1 wages'
| If you're not sure, check with XXX's payroll department or stock plan administrator
+-------------------------------------------------------------

Trick is as Tom said... go to the really really end of the interview....

Ah, I discovered that even if I only have one ESPP transa...

LRC11 — Tue, 04 Jun 2019 21:30:45 GMT

Ah, I discovered that even if I only have one ESPP transaction from one lot, I must choose "enter one sale at a time" rather than "I'll enter a summary". Unless you choose one sale at a time, you won't see the option to "enter additional info on my own. " Thanks praveenswadi.

When entering the sale of the shares, indicate that the s...

Fern — Tue, 04 Jun 2019 21:30:48 GMT

When entering the sale of the shares, indicate that the sale involves an employee stock purchase plan. See screenshot below. You will then be prompted to enter information about the sale and the amount that is reported on your W-2.

To enter the sale:
• Select Federal Taxes
• Select Wages and Income
• Select Show More at Investment Income
• Select Start at Stocks, Mutual Funds, Bonds and Other

Employee stock purchase plan shares are purchased at a discount. The discount the employee receives on the stock purchase is considered compensation and is reported as ordinary income. Your basis in the stock purchase will be the amount paid for the stock plus the compensation income reported.

The sale of these shares are reported on a Form 1099-B. The capital gain or loss is the difference between what the stock sold for and your basis.

See the article below for more information.

https://turbotax.intuit.com/tax-tools/tax-tips/Investments-and-Taxes/Employee-Stock-Purchase-Plans/INF12047.html

I don't see these screens anymore. I am using TT Premier...

praveenswadi — Tue, 04 Jun 2019 21:30:50 GMT

I don't see these screens anymore. I am using TT Premier online. Instead of the first screen where the information is in column format, the new UI shows tabular entry for each cell. And the second screen, highlighted option - not available. :( I remember seeing this last year's return. Not anymore.
Also, talked with a number of friends and at least 2 acknowledged running into same issue. :(

Re: Where is the question on whether ESPP ordinary income is included on W2

Anonymous — Sat, 30 Jan 2021 03:44:49 GMT

Has anyone run into this issue in the latest online version for the 2020 tax year?

I went through the full ESPP workflow, it allowed me to adjust the basis for ordinary income, but never asked me if the ordinary income was on my W2.

Re: Where is the question on whether ESPP ordinary income is included on W2

DianeW777 — Mon, 08 Feb 2021 20:59:59 GMT

As long as you entered the correct stock basis and selected Long term noncovered (held more than one year) or Short term noncovered (held one year or less) this places the sale on the appropriate section of Form 8949. This selection of 'noncovered' clarifies that the basis, if any, on your Form 1099-B needed to be adjusted.

Re: Where is the question on whether ESPP ordinary income is included on W2

Anonymous — Tue, 09 Feb 2021 00:49:16 GMT

Hi @DianeW777 denoting the correct "noncovered" may allow you to appropriately adjust the basis on the 8949, but I don't believe it impacts whether or not the ordinary income was appropriately reported in the W2. This would need to be adjusted at the income level on your 1040, which in prior years there was the option during the workflow to select if it has already been reported in your W2 or if it needs to be added as ordinary income.

When I select covered or noncovered in the flow, in neither instance does it appropriately add back the income to the total income line when I go to tool > View Tax Summary.

Re: Where is the question on whether ESPP ordinary income is included on W2

DianeW777 — Tue, 09 Feb 2021 16:13:41 GMT

The actions that needs to take place in TurboTax Desktop version are shown below. The following link is helpful as well.

Employee Stock Purchase Plans

The steps to this screen are entered below for your convenience.

Open your TurboTax account (Desktop Only)
Scroll to Investment Income > Stocks, Mutual Funds, Bonds, Other > Update > Edit beside the ESPP stock sale
Continue > Edit > Enter the requested details for this stock > Choose the Sale Category > Continue
Continue or review your information on Less common items > Done
Yes stock was acquired through employee stock plan > No do not remember this answer for all sales > Continue
Select Employee stock purchase plan (ESPP) > Continue > Select Company > Enter number of shares sold > Select owner
Continue > Select I have all my info ..... > Continue > Enter your information under short or long term as applicable
Notice the compensation is shown at the bottom > Continue until you come back to the summary screen for this ESPP sale
Done > Done > Done > Your Employee Stock Plan Results screen appears with the selection for the W-2
Select Yes or No based on your situation
See the images below.

This should allow you to complete this transaction and finish your tax return. Thank you for your patience.

Re: Where is the question on whether ESPP ordinary income is included on W2

brian991 — Sun, 14 Feb 2021 00:58:16 GMT

For 2019 I added the information from my 1099-B and 3922 and there was no question about whether the ESPP ordinary income was included on W2. I am unable to find in Turbotax 2019. Was this question not in Turbotax 2019?

Does this mean there is a problem if the ESPP ordinary income / discount was not included in the W2?

Re: Where is the question on whether ESPP ordinary income is included on W2

DianeW777 — Mon, 15 Feb 2021 13:08:33 GMT

No, the question is there. Follow the steps below to reach the question for the ordinary income to be added to the W-2.

The actions that need to take place in TurboTax Desktop version are shown below. The following link is helpful using Situation 1.

Employee Stock Purchase Plans

The steps to this screen are entered below for your convenience.

Open your TurboTax account (Desktop Only)
Scroll to Investment Income > Stocks, Mutual Funds, Bonds, Other > Update > Edit beside the ESPP stock sale
Continue > Edit > Enter the requested details for this stock > Choose the Sale Category > Continue
Continue or review your information on Less common items > Done
Yes stock was acquired through employee stock plan > No do not remember this answer for all sales > Continue
Select Employee stock purchase plan (ESPP) > Continue > Select Company > Enter number of shares sold > Select owner
Continue > Select I have all my info ..... > Continue > Enter your information under short or long term as applicable
Notice the compensation is shown at the bottom > Continue until you come back to the summary screen for this ESPP sale
Done > Done > Done > Your Employee Stock Plan Results screen appears with the selection for the W-2
Select Yes or No based on your situation
See the images below.

This should allow you to complete this transaction and finish your tax return.

Re: Where is the question on whether ESPP ordinary income is included on W2

brian991 — Mon, 15 Feb 2021 16:58:19 GMT

I pulled up Turbotax Premier 2019 to look at what I did. Your steps were similar to what I had done except on step 7 I did "Walk me through adding more info (recommended)". In that case it prompted me to enter my discount and my form 3922 information. If you do that way it doesn't show you the compensation income for that entry.

I didn't realize if I keep clicking through it gave me the total compensation income and W2 choice (for all ESPP entries not just the single one). It looks like I did correctly list "no" last year.

Thank you for your help. Think I am going to upgrade and use Premier again!