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New Member
posted Jun 4, 2019 8:56:12 PM

If my W2 included my W2 Gains from ESPP, do i need to include stocks in my taxes? its the only stocks i owned/sold

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1 Best answer
Intuit Alumni
Jun 4, 2019 8:56:14 PM

If all of your stock transactions are included as income in box 1 of your W-2, then you do not need to file Schedule D.

If this plan was a non-qualified plan, then the gains from stock transactions are treated like ordinary income. They are reported in box 1 of your W-2 and taxed the same as your wages.

A qualified stock purchase plan allows the gains from the sale of company stock to receive capital gains treatment, which would be reported on Schedule D.

This article explains more about Employee Stock Purchase Plans.


3 Replies
Intuit Alumni
Jun 4, 2019 8:56:14 PM

If all of your stock transactions are included as income in box 1 of your W-2, then you do not need to file Schedule D.

If this plan was a non-qualified plan, then the gains from stock transactions are treated like ordinary income. They are reported in box 1 of your W-2 and taxed the same as your wages.

A qualified stock purchase plan allows the gains from the sale of company stock to receive capital gains treatment, which would be reported on Schedule D.

This article explains more about Employee Stock Purchase Plans.


New Member
Jun 4, 2019 8:56:15 PM

"schedule D not required" -- Miriam, just curious, what is the authority that gives the dispensation from the schedule D reporting requirement? Without a specific "out" from reporting on schedule D, one would think that the transaction WOULD be reportable there although the amount of basis reported would include the amount treated as income on the W-2.

Level 2
Feb 6, 2021 4:18:26 AM

That has not been my experience.  My wife got audit letters from the IRS when she did not have a Schedule D with her tax return reporting all of her stock transactions, even though the gain on the sale of her company stock was reported in her W2 income.