Solved: How do I add ESPP ordinary income that was not included in my W-2?

lazyh32 · Mar 18, 2020 10:11:41 AM

The 2020 version of Turbotax online does not ask me if the ordinary income I earned as part of an ESPP stock sale was included in my W-2. I went through the step-by-step enter it yourself. I even worked with a Turbotax support person on the phone, and they could not get the question to come up. I then used the suggestions from 2019 questions that said to use the "Miscellaneous Income, 1099-A, 11099-C" option and then the "Other income not already reported on a Form W-2 or Form 1099" option but I am not able to put in a description of "ESPP ordinary income" and none of the pre-set choices for description are applicable. How do I handle this?

How do I add ESPP ordinary income that was not included in my W-2?

This changed again in TurboTax 2023 and this is very buggy and should be fixed since otherwise risk is people will underpay and get issues with the return. Here's the process I found (similar hack as before):

Do not mix ESPP and stock sales in 1 brokerage/service since then I got no question anymore whether this was on W2 (despite it knows which sales were ESPP, that's simply a bug sadly)
Use separate entry for ESPP sales only:
- 'Add more sales', then choose 'Stocks, Bonds, Mutual Funds',
- Skip import & enter financial info
- Answer 'Yes' for 'Do these sales include any employee stock', after that choose entering one by one
- Choose for 'What type of investment did you sell?': 'Employee Stock Purchase Plan'. Remaining fields enter as reported on 1099B (not supplemental but main section).
- Select 'The cost basis is incorrect or missing on my 1099-B (even though it's not)
- Next page choose 'I can't find it and need help' and select continue on next page
- Select W2 (even if not reported there)
- Then enter the ESPP discount and 3922 info
- Click continue 2x, then it will show 'Let's review your employee stock plan results' and deselect 'Reported on W-2' in in your case it's not reported on W-2