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ESPP Qualifying Disposition Ordinary Income

I have 2 ESPP sales that are qualifying dispositions. The ordinary income part of those sales is not reported on my W-2. I do not see anywhere in the Turbotax online tool to specify that the ordinary income portion is not reported. How do I add this ordinary income?

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1 Reply
GeorgeM777
Expert Alumni

ESPP Qualifying Disposition Ordinary Income

You need to prompt TurboTax online to ask various questions about the nature of your ESPPs.  To do that, on the screen where you enter your initial information about your ESPP, such as Sales section, Sales info, Proceeds and Cost, select the box The cost basis is incorrect or missing on my 1099-B. Then follow these steps:

 

  1. On the screen, Adjust your cost basis to ensure your best outcome, select I can't find it and need help.
  2. Press Continue, and then on the screen, Tell us about your ESPP sale, select the appropriate option and Continue.
  3. On the screen, Now we'll walk you through entering the rest of your sales info, select "Ill enter this on my own.
  4. You should see the screen, Let's enter your ESPP sale details.  One of the fields on this screen will allow you to enter the amount of your compensation income which is missing from your W-2.
  5. Continue through the application, and you should see the screen, Let's review your employee stock plan results.  Because your compensation income was not included on your W-2, uncheck the box for Reported on W-2.  
  6. Select Continue to close this section. 

@rajas-kar89 

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