ESPP Adjusted Cost Basis and Compensation Income

[Sedes Gobhani]

I have 2 long-term ESPP sales that I'm trying to report.  I find the adjusted cost basis for both trades is higher than the cost basis reported.  I've used the import tool and now I'm editing through the "do it yourself" menu.

The first one I entered and I have no idea what to put for the "Amount of Compensation Income".  If I try to skip it I get "Most ESPP sales will have a compensation income element.  Please verify your entry below."  I read it is W-2 Box 1, so I put in that number.  It takes it.  Looks good.  (I already entered that before, not sure why TT didn't find it). 

I get to the 2nd sale,, and it says the Amount of Compensation Income for this Sale is 0.00.  It is not letting me change it.  It also says "Most ESPP sales will have a compensation income element.  Please verify your entry below."  TT allows me to continue if I click Continue again.  Why did it not let me change it, and force it to 0.00?  

If I entered the wrong value for Compensation Income, please tell me where I find this?  It says it's on my W-2 but no box there has values that match my brokerage form's  "Adjustment Amount (Ordinary Income)".  I'm not even sure if "Adjustment Amount (Ordinary Income)" is the same thing as "Compensation Income"?  Maybe it is, maybe it isn't?  I'm so confused.  TIA.

Mark

[Sedes Gobhani]

BTW I believe that's a bug in TT that it's not letting me change the Compensation Income but hard codes it to 0.00, and then complains about it.  Something about that seems sort of goofy.

[Sedes Gobhani]

Are there any Intuit tax experts that can come to the rescue? 

[Sedes Gobhani · Accepted solution]

OK I figured it out myself.  There's paperwork from the broker that shows the adjusted cost basis, and you have to use that amount for SPP stock sales.  The "Adjustment Amount (Ordinary Income)" from the broker form is the same thing as "Compensation Income" in Turbo Tax.  That value is the adjusted cost basis minus the cost basis on 1099-B.  That value may also appear on your company website under "W-2 breakdown" for example.