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Level 2
posted Mar 31, 2024 11:04:49 PM

(2024) Adding ESPP ordinary income not included in my W-2

In the 2024 online version of TurboTax, how do we get to the screen where it asks if our ESPP ordinary income was included in the W-2 or not ?

I have a situation in which my ESPP gains were not reported in my W-2. This was because the broker moved these stocks to my "personal" account. How do I correctly report the discount on W-2 and then ensure that the correct cost basis is set? It seems like every year this process changes in TurboTax based on some search in the forum.

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1 Replies
Expert Alumni
Apr 2, 2024 12:40:38 PM

When you enter your ESPP sales, choose Employee Stock Purchase Plan as the type of investment you sold:

 

 

Indicate that your cost basis reported on the 1099-B form is wrong and that you need help finding the correct cost basis. You will come to a screen where you can indicate that the ESPP sale is not listed on a W-2 that is entered on your tax return. When you do that, the discount will be reported on schedule 1 on our tax return as other income.