1099-B Ordinary Income

[renoyoung]

One of the interview questions indicates to check a box for whether or not proceeds were ordinary income (in the context of the sale of stock from an ESPP). In the supplemental information, "Ordinary Income Reported" has values in it. Does that mean I need to check that box?

[AmandaR1 · Accepted solution]

Yes, it does. For ESPPs the discount offered to the original stock price is taxed as ordinary income. The remaining gain is long-term capital gain at preferential rates. 

[renoyoung]

On my 1099-B, the values in "Ordinary Income Reported" are less than the total proceeds. That makes sense based on what you wrote. However, if I check the box in turbo tax that indicates that a particular sale was ordinary income, does that mean that turbo tax "thinks" that the whole sale was ordinary?