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Level 2
posted Mar 28, 2020 12:52:20 PM

I'm entering ESPP reinvested dividends (separate from shares) in the 1099-B interview. For the ? "Did you purchase all of these investments?" do I answer yes or no?

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3 Replies
Expert Alumni
Mar 28, 2020 1:15:44 PM

I think start over in this section so you can identify it from the beginning as ESPP, if you have not already.

 

To report ESPP sales in TurboTax:

  • When you enter your 1099-B information you will be asked: 'Do these sales include any employee stock? This includes ESPP, RSU, RS, NQSO, and ISO' Say yes.
  • Then you will be asked 'What type of investment did you sell?' Select ‘Employee Stock Purchase Plan, (ESPP) '
  • Check the box that says 'The cost basis is incorrect or missing on my 1099-B'
  • Then select 'I need help figuring out my cost basis'
  • You will be prompted to enter your ESPP and Form 3922 information.

To report the ESPP, you will need

  • Form 3922 from your employer,
  • Form 1099-B and
  • Form W-2

to determine the appropriate cost basis for your transaction, which may require additional details in TurboTax to accurately report the transaction.

 

For more resources, see below:

Level 2
Mar 28, 2020 1:56:34 PM

Based on other questions/answers I'd seen, I thought that reinvested dividends within an ESPP are treated like normal stock since they aren't discounted.  The regular ESPP shares are indicated with the 1099-B Cost or Other Basis with an (e) indicating ESPP, but the dividends are not.  Given this, should I still follow the ESPP interview for the dividends?  I think I did initially, but reconsidered since they weren't regular ESPP shares.  

Expert Alumni
Apr 2, 2020 6:27:39 PM

Please read this Turbo Tax link for further information on how to enter this. From what i am able to interpret is that if you know the basis of your dividend stocks, you can enter this as a regular stock sale thus you do not need to complete the ESPP interview.