How do I know if my employee stock purchased income is included on my W2?

[TomYoung · Accepted solution]

Assuming what you are referring to here is stock acquired via an Employee Stock Purchase Plan (ESPP) then the purchase of the stock, generally, should not create compensation to be reported on a W-2.  Typically it's the sale of that stock that can create compensation.

Look at Box 14 of the W-2.  That's largely a "memo" area where employers can provide information to employees about what's included/excluded on their W-2.  Unfortunately the W-2 doesn't provide much space for "explanation" so it's not going to say "Compensation created by the disqualified sale of ESPP stock"; you have to try and interpret what the employer is trying to communicate in the few letters they can put in that box.

Tom Young

[xjmo]

If Box 14 shows, ESPPQD xxx, does it mean ESPP sale is included in W2?

[TomYoung]

Yes, it certainly does.