ESPP Offset

[freddytax]

Does anyone know what this is?  I've sold stock that my employer purchased post tax on my behalf over the years and all of a sudden I received a W2 and was told by my former employer that this was "offset".  The W2 makes it look like I received income and I have not worked for this employer for nearly two years.  Yes, I sold some stock and expect to receive a 1099-B for any capital gains/losses.  Any help is greatly appreciated.

Thank you

[ThomasM125]

The income reported on your W-2 form is the discount you received when you acquired the stock. You acquire the stock for less than the market price, so that difference is reported as wage income to you when you sell the stock.

You will receive a Form 1099-B reporting the stock sale which may list what you paid for the stock as the cost basis. A portion of that cost may be is what is being reported as wages on your W-2 form. So, you may need to adjust the cost basis reported on your Form 1099-B to include the discount reported on your W-2 form. You will see an option for that when you enter the Form 1099-B in TurboTax.

A portion of your gain on sale of the stock is reported on your W-2 form and the rest when you enter the stock sale. So, you are not getting double taxed, it is just that a portion of the gain is reported as wage income.

[freddytax]

Thank you, Thomas!!!