Hi there,
When I tried to update Adjusted cost basis for my ESPP of my previous company that I left in 2019, Turbo Tax premier asks me to enter info from form 3922 such as First day of your offering period etc. But I haven't received form 3922 from my previous employer. Those ESPP shares were purchased in 2019, but sold in 2020. Should I be reaching out to my previous employer for form 3922? I don't remember having filled this info from form 3922 last year where I could easily update the Adjusted cost basis..Not sure if something changed in Turbotax this year or if I am missing something as it has now landed me on a page which says Let's get some purchase info about this ESPP purchase lot and asks for entries from form 3922. Thank you!
The information on form 3922 would be helpful to insure that you account for your employee stock purchase plan (ESPP) share sales properly. However, you may be able to account for the sale by another method.
Often, the ordinary income component of a ESPP sale ( if applicable) will be reported on your W-2 form in box 1 with a notation in box 14. If so, you can normally add that income component to the cost basis reported on your form 1099-B, and you will end up with the correct income reported on your tax return.
So, you can enter the form 1099-B as a normal investment sale, but adjust the cost basis to account for the ordinary income component of the sale, which is on your W-2 form. Normally, the cost basis is wrong on the 1099-B, since it doesn't include the ordinary income that is reported on your W-2 form.
You will see an option to adjust the gain reported on your form 1099-B when you enter the proceeds and cost basis in TurboTax, as follows:
Thanks a lot again!
These shares were bought by my previous employer in 2018 and I sold them in 2020, so my W2 from 2020 is from current employer. I finally found the form 3922 from 2018 which had the info about this sale. Kindly guide me on how to enter that in TT: I see the following options:
In the screen you posted
1) should I update the Total cost basis (sum off all 1e) with the Adjusted Cost basis from ETrade Supplement form,
2) I see that you selected the check box with "I need to enter the amounts from box 1f, box 1g or other adjustments" .. What should I enter now after this given that I now found form 3922.
3) Or should I choose "I'll enter one sale at a time" ? If so, should I update Box 1e: Cost or other basis with thee Adjusted cost basis from ETrade Supplement form? Or should I hit continue, continue, then choose the company name, and then enter the values from form 3922?
Thanks so much again!