If my ESPP is not on my W-2, but is on a 1099-MISC, do I select Yes or No here?

[TomYoung · Accepted solution]

The compensation associated with the sale of the stock acquire via the ESPP should not be reported to you on a 1099-MISC, but since you're going to put that 1099-MISC in as income you might as well say "Yes."  (BTW, nobody really knows where "here" is.  I'm guessing that you're referring to the "Your Employer Stock Plan Results" page.)

Tom Young

[Anonymous]

Thanks Tom. I figured that the page I was on would be tied to my question, but apparently it wasn't. Room for improvement, I suppose. But yes, here refers to the question about whether ESPP regular income is reported on my W2.

I did get a 1099-MISC from my former employer, but it's ~$28 higher than what TurboTax calculated, because it doesn't take into account the broker costs. I'm guessing that doesn't matter? I also don't want to leave off the 1099-MISC, since it does get reported to the IRS, so I guess I'll just eat the tax on that $28.

[TomYoung]

Since you know the amount on the 1099-MISC why don't you simply delete the trade and then re-enter it using the "regular" 1099-B entry form and just add the 1099-MISC amount to your out of pocket basis?  That gets your basis and your compensation perfectly in sync.

[Anonymous]

I'll give that a try, thanks!