topic ESPP ordinary income 2020 Turbotax Premier in Investors & landlords

ESPP ordinary income 2020 Turbotax Premier

pattiv — Sun, 21 Mar 2021 23:08:52 GMT

I am using 2020 Turbotax Premier. I have ESPP ordinary income that was not reported on my W-2. Turbotax did add my ESPP ordinary income to my W-2 income corrrectly on line 1. I've sold ESPP stock in the past and remember that the words 'ESPP ordinary income' needed to be written on the 'Wages' line but Turbotax is not writing this on the 'Wages' line for me this year.

Does anyone know if 'ESPP ordinary income' should be written on line 1 if you added it to your wages?

Thanks!

Re: ESPP ordinary income 2020 Turbotax Premier

DavidD66 — Mon, 22 Mar 2021 03:20:19 GMT

I would go on the assumption that if it was required for "ESPP Income" to be printed on the 1040, it would. Keep in mind, if you e-file your return, it is not a pdf version of your return that is sent. It is data only, no descriptions, headings, instructions, etc. I would be confident that whatever needs to be reported to the IRS, is being reported to the IRS, in the format that they mandate.

Re: ESPP ordinary income 2020 Turbotax Premier

pattiv — Mon, 22 Mar 2021 14:00:19 GMT

Thank you for your response.I feel much better about it.

Re: ESPP ordinary income 2020 Turbotax Premier

olipetry — Wed, 02 Mar 2022 06:17:14 GMT

I am having this issue as well and I double checked the income reported on line 1 on my form 1040 and it does not include the ordinary income. In other threads on the forum the instructions were to find form "ESP Comp WKS" and uncheck the box that states that this was already reported in a W2. How do I get to this worksheet in the online version?

Re: ESPP ordinary income 2020 Turbotax Premier

HelenC12 — Wed, 02 Mar 2022 16:49:46 GMT

@olipetry

You can change the worksheets in TurboTax CD\Download versions only.

To report "benefits from an employer received but not reported on a W-2", follow these steps:

On the left side menu, select Federal.
On the top tabs, select Wages & Income.
Scroll down to Less Common Income and select Miscellaneous Income, 1099-A,1099-C and Start/Revisit.
On the Let's Work on Any Miscellaneous Income screen, scroll down to Other income not already reported on a Form W-2 or Form 1099 and Start/Revisit.
On the Other Wages Received screen, select Yes.
Continue with the onscreen interview until you get to the Any Other Earned Income screen and select Yes then Continue.
On the Enter Source of Other Earned Income screen, select Other. Do not select Employee compensation that was not reported on a W-2. If you do, TurboTax will calculate Social Security(SS) and Medicare taxes. ESPP is ordinary income SS and Medicare taxes do not apply.
On the Any Other Earned Income screen, enter the information and select Done..

Your Form 1040, Line 1 will have the ESPP. To preview your 1040, see How do I preview my TurboTax Online return before filing?