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I have long term qualified ESPP sale (sold after 2 year grant date and 1 year of purchase). Turbo tax is expecting that my employer W2 is accounting for the compensation,

I'm not able to make adjustment so that I get taxed for compensation income at my ordinary tax rate and not in my W2. Why would turbo tax even consider compensation income from qualified sale to appear in W2? My employer only reports the disqualified compensation income in W2
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2 Replies

I have long term qualified ESPP sale (sold after 2 year grant date and 1 year of purchase). Turbo tax is expecting that my employer W2 is accounting for the compensation,

At one point, turbo tax asks if compensation income (from all ESPP) is included in wages (w2). The only options are to select “yes” or “no”. For my case, w2 is reporting disqualified compensation income only. So, only a partial transactions are reported on w2 and not all. How do I selectively answer for individual transactions?

GeorgeM777
Expert Alumni

I have long term qualified ESPP sale (sold after 2 year grant date and 1 year of purchase). Turbo tax is expecting that my employer W2 is accounting for the compensation,

To the extent that you have ordinary income from your ESPP sales that has not been included on your W-2, you can enter such income in the Wages and Salaries category of TurboTax.  To access Wages and Salaries, go to the Income & Expense section, and scroll down the page to Wages & Salaries.  Enter your missing income there.  

 

Do not lump your ESPP transactions together.  Keep them separate.  In other words, enter one transaction at a time in the Stocks, Cryptocurrency, Mutual Funds...etc section of TurboTax.  That section can also be accessed from Income & Expenses screen.  

 

@saini_snd-hotmai

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