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Level 3
posted Feb 4, 2021 11:40:33 AM

BUG: ESPP Income - Cost basis computation

This error is related to the known "Selling price per share" issue in TurboTax 2020.

Even after the Feb. 4th update, TT will still not properly compute cost basis on ESPP income. I compared a virtually identical transaction in my 2019 TT, to the same one (just slightly different amount) in 2020. 

 Here are screen shots from TT:

 

2020:

2019, same kid of transaction:

 

 

As you can see, in 2020, it's just computing a cost basis of Zero. That is a mistake. Each of those transactions were entered the same way, using information from my 1099-B (which was imported) and my 3922. 

 

Is this still a known issue the developers are working on?

 

3 53 3119
24 Replies
Level 3
Feb 4, 2021 11:47:51 AM

Here is another screenshot from TT on this issue, that I believe gets at the heart of the problem.

TT is simply not computing the cost basis correctly:

Everything is just "$0". All the sale data was entered, so this makes no sense. 

 

 

Expert Alumni
Feb 5, 2021 4:51:19 PM

The issue has been submitted and is currently under investigation.  Please click on the following link and sign up for an email notification when it's fixed.  

 

Selling price per share

 

Thank You for your patience

 

Many large companies offer Employee Stock Purchase Plans (ESPP) that let you buy your employer's stock at a discount. These plans are offered as an employment incentive, giving you an opportunity to share in the growth potential of your company's stock.  For details about tax treatments, click here:   Employee Stock Purchase Plans

Level 3
Feb 5, 2021 4:58:52 PM

Hi Linaj2020, 

 

The selling price per share issue is actually a separate issue than the problem that TT has with ESPP transactions. The selling price per share issue was actually fixed in the TT maintenance release yesterday, Feb. 4th. The link you provided discusses that issue, which is now fixed.

 

What isn't fixed is the ESPP malfunction in the software that caused TT to compute $0 proceeds and a $0 cost basis on all ESPP transactions. I would love to hear an update specifically about that, if you have one.

Expert Alumni
Feb 10, 2021 11:13:43 AM

During a recent test of an ESPP stock sale this experience did not happen. Here is a list of steps that were used.

  1. Open your TurboTax account (Desktop Only)
  2. Scroll to Investment Income > Stocks, Mutual Funds, Bonds, Other > Update > Edit beside the ESPP stock sale
  3. Continue > Edit > Enter the requested details for this stock > Choose the Sale Category > Continue
  4. Continue or review your information on Less common items > Done
  5. Yes stock was acquired through employee stock plan > No do not remember this answer for all sales > Continue
  6. Select Employee stock purchase plan (ESPP) > Continue > Select Company > Enter number of shares sold > Select owner
  7. Continue > Select I have all my info ..... > Continue > Enter your information under short or long term as applicable
  8. Continue to complete your sale

If you continue to experience your original issue you can click this link: Contact us

Level 1
Feb 11, 2021 10:53:52 AM

@DianeW777 That works for the first ESPP sale.  Somehow for every subsequent ESPP sale after the first the cost basis is incorrect coming up as $0.  I walked through an expert on phone support over the weekend and they confirmed with me that there is a bug and pointed me to this thread.  

Level 1
Feb 11, 2021 10:55:22 AM

I also tested this on the 2/10/2021 update and the bug still persists. 

New Member
Feb 12, 2021 5:42:10 PM

@DianeW777 Subsequent transactions, aside from the first, part way through the guided question asking, suddenly revert back to the first transaction.  That is why you end up with a $0 basis.

Level 3
Feb 13, 2021 4:07:59 PM

Hi Diane, thank you for your post above about how to enter ESPP transactions. However, I can confirm that this bug does still exist in Turbotax, and has NOT been fixed with the latest software release dated Feb. 10th.

 

Can you confirm for me that this bug has been identified by Intuit and it is being worked on? If not, we have a huge problem on our hands. 

 

To clarify, as has been posted by myself and several others, turbo tax will compute a cost basis of $0 for all ESPP transactions, even when you follow the instructions as you detailed above. 

 

Thank you.

 

Level 2
Feb 13, 2021 4:42:06 PM

For what it's worth, I'm having the exact same issue...

Level 1
Feb 13, 2021 4:58:51 PM

I can confirm that this is definitely a bug. As noted by another user, the cost basis calculation works for the first transaction, but all the others show the cost basis as $0. Also, I have multiple purchase lots and sales, yet the 3922 form I enter seems to be sticky... I enter it for the first sale where it is correct, but then enter it for another sale and it prefills the values from the first sale. When I update them, the entered amounts on the first sale are changed too when I go back to look at it.

Level 3
Feb 13, 2021 9:32:29 PM

Thank you for chiming in and saying you see the same thing. What concerns me here is there hasn't been any acknowledgement from anyone at TurboTax that this bug exists. The post from DianeW777 above seems to imply that they don't think the bug exists, which is not true. What could be happening is they might be confusing this issue with the one that affected RSU's, where selling price per share could not be entered. That bug was in the same interview process inside TT (1099-B income) that is also used for ESPP's. That was a more obvious bug, and it was fixed about a week ago. So I wonder if TurboTax thinks this bug is fixed, and they aren't working on it.

 

If that's the case, it would be a disaster for all of us with ESPP income, just sitting here waiting for them to fix it while we watch April 15th come closer. It would be nice to have a formal acknowledgement from TurboTax that they are working on this.

 

Level 2
Feb 14, 2021 6:46:57 AM

Hi @DianeW777 , please look at the posts that follow your last message. There is a bug, and it is affecting every customer who has *multiple* ESPP sales (entering a single ESPP sale will work).  Thank you!

New Member
Feb 14, 2021 12:05:51 PM

I am having the same problem.  Cost basis is being calculated as 0.  This is a BIG problem since this will increase our tax OWED significantly if it's not fixed and people blindly trust TT.  

 

Please fix ASAP.

New Member
Feb 14, 2021 12:57:26 PM

For what its worth, updated toay ie 2/14, and bug still exists. If there are more than one ESPP sale, then it appears to "remember" old entries, misses cost basis computation, changes old entries when updating new ones, etc.

 

essentially, ESPP part cannot be used. Does anyone if anyone from Intuit acknowledged the issue ?

Level 3
Feb 14, 2021 2:08:45 PM

i have exactly the same problem as of 2/14.

I have entered 2 espp stock  sales, for 62 shares and 536 shares.

Doing the walk  through on the first sale it asks for 3922 info and i  enter it , and it works out an adjusted cost basis correctly.

When i  enter the second sale and try to  do the walk  through and add the 3922 info it refers to the 62 share sale not the 536, and pulls up all the previously entered info  for the first sale and enters a cost basis of $0 which is wrong.

Level 1
Feb 14, 2021 5:54:52 PM

Exact same bug noticed here with the cost basis of multiple ESPP entries being calculated as $0 after the first entry.  Please do not write this off as user error; this is a real bug that needs to be fixed and has real negative monetary implications.

 

 

Level 3
Feb 14, 2021 6:04:59 PM

Same bug, same frustration.

 

"Get your maximum refund" - what a practical joke! 

 

Good thing I caught it or the only maximum refund would be for the IRS.

 

It's about time for Intuit to re-write this crappy ESPP/RSU/SOP wizard which asks way more questions than is needed, and repeats the same input fields in so many byzantine ways. With more than 10 million US employees receiving various types of stock incentives, you shouldn't be a CPA to be able to navigate of this ridiculous wizard.

Level 2
Feb 14, 2021 6:34:12 PM

I have the same bug.  TT please fix this.  I also do not get any question to adjust the basis for any W2 income.  This must happen as well.

 

Terrapin said:   "entering a single ESPP sale will work" 

NO, this is not correct for me ... I have a single ESPP entry and it has the bug as well.  (with multiple other sales).

I tried deleting and then reenter.  It picks up the old values and fails with the $0 BUG.

Level 2
Feb 14, 2021 9:27:27 PM

I have the same bug.  As an IT guy, that's pretty bad.  I have multiple ESPP sales and it picks up all the info from the first one, just like everyone is saying. Someone forgot to update a pointer in the code.

Level 2
Feb 15, 2021 10:47:42 AM

I sold multiple purchase lots from my ESPP.  I entered the ESPP info and Turbotax calculated everything correctly for the first purchase lot.  When I tried entering subsequent purchase lots, there are numerous errors (number of shares, cost basis, etc.).   This appears to be a programming error - I successfully used Turbotax in previous years for ESPP sales.  Something is wrong with the Turbotax Premier 2020 version.  It sounds like numerous other people are having similar problems.

Level 3
Feb 16, 2021 7:02:27 AM

The link to the issue only leads to a page that says Access Restricted.

Is this issue being addressed?  As of Feb 15, 2020 still getting $0 for any ESSP Cost Basis Calculation after the first one.

Level 3
Feb 16, 2021 10:35:04 AM

Support called me back and the update is that this fix will be some time off...  My case is linked such that I would get an update when fixed.    Although support was great in documenting my issue and communicating back to me - TT as a whole needs to enable transparent communication as to what the issue is and when they can resolve it.  I purchased this package for just these kinds of computations = and now I have to dive into the forms and do it myself If I'm going to file anytime soon.  My ESPP sales is the last bit of info I need to enter to be done.  I  have to now also question TT's computations of my RSU and other transactions ???...    Really I expect some sort of refund.

 

In any case looks like we are on our own for the foreseeable future. 

Level 3
Feb 16, 2021 11:08:32 AM

How can a fix for a basic error in stock processing in the version  that is specifically for stocks be 'some time off'??

I'm a software engineer of 30  years,  this is a simple 'table or array processing not working on selected entry', the same thing is done for each  entry, all you have to do  is make sure the table is processed based on the selection made on the previous screen. It looks like it is always being set to the first table/array entry regardless of your selection.

That really is basic stuff and easy to fix.

Level 3
Feb 16, 2021 11:18:29 AM

I agree, especially since this section always worked just fine in all the past years. 2019 and earlier was just fine. I don't know why they changed it for 2020? Someone made a huge mistake.