I sold some ESPP stock. Don't get a w2. I know the discount was 15% and is ordinary income. where do I enter it (I did adjust the cost basis by that amount)

[MelindaS1]

How to enter sales of Employer Stock Purchase Plan shares:
 

1. Select Federal
    
2. Then Wages & Income
    
3. Under Investments and Savings select "Add/Edit" or "Start"
    
4. Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B, 1099-DA)
   
   
   1. When prompted, Tell us about the sales on your [...] 1099‑B 
      Do these sales include any employee stock? Select Yes
       
   2. Follow the prompts from there; select 'Enter a different way' to input your transaction details manually without importing the 1099-B from the bank.

[lb93]

i dont see where you have me entering the discount as ordinary income. i can enter the sale manually, identufy it as espp, and adjust the cost basis by the discount. i did that but it never asked me about whether i wanted to enter the discount as ordinary income which i only have to do if is not reported on a w2. so no the answer is incomplete or expects turbotax  to take care of it which doesnt appear to be true. i am guessing i would enter it under other income but i would like to make sure. the help screen should discuss that.

[ThomasM125]

The discount is wage income not subject to social security or Medicare tax. You can enter it in TurboTax as follows:

1. Go to the Wages and Income section of TurboTax

2. Choose Less Common Income then Miscellaneous Income, 1099-A and 1099-C

3. Choose Other Income not already reported on a Form W-2 or Form 1099

4. Indicate that you had Other Wages Received

5. On the screen that says Any Other Earned Income? say yes

6. Indicate that the source of income was employee compensation not reported on a W-2

7. Report the wage income and use reason code H 

[BDF524]

Is the absence of a value in Box 14 of my W-2 a certain indication that my company did NOT report the ordinary income (Box 1) for the discount on ESPP share purchase?  The shares were transferred from the ESPP holding company to my brokerage so it seems reasonable that there was a disconnect and my company did not report the earnings but I want to be absolutely certain to avoid paying double taxes.

[ThomasM125]

The ordinary income associated with ESPP stock would be reported in box 1 of your W-2 form, but not in boxes 3 or 5. So, if those amounts are all the same then the discount would likely not have been reported on your W-2 form.

[BDF524]

Boxes 3&5 are much higher than Box1.  Suspect it is 401k or HSA contributions.  Still unsure if my W-2 includes the ordinary income from the discount on ESPP purchases.  I plan to go forward with the assumption that it is included which means I need to adjust the cost basis of each ESPP lot sold.

Given the following excerpts from Forms 1099-B and 3922 how should the cost basis be calculated?

Quantity	Date Acquired	Date Sold	Proceeds	Cost Basis	Gain/loss
2.990	01/13/23	12/11/25	934.36	368.67	565.69
3.272	01/31/23	12/11/25	1,022.48	374.64	647.84

Fair Market per share on grant date	Fair Market per share on exercise date per share	Exercise price paid per share **	Number of shares purchased
141.19	145.06	123.30	2.990000
141.19	134.71	114.50	3.272000

[BillM223]

"Boxes 3&5 are much higher than Box1.  Suspect it is 401k or HSA contributions."

This could be the effect of 401(k) contributions, which are removed only from Wages in box 1 on the W-2. 

This can't be the effect of HSA contributions, because these contributions (as shown with code W in box 12 of your W-2) are removed from Wages in all three boxes (1, 3, and 5).