Is income from my ESPP stock sale considered earned income even if not included on W-2?

[jackf1958]

I retired in 2021 and sold ESPP stock in 2024.   The sale was a qualifying disposition and the income from the discount portion was reported to me from Fidelity but was not included in a 2024 W-2.  I currently have no other earned income.    Can the ESPP income be considered earned income and used as the basis for a Roth IRA contribution even if it was not reported on a W2?   Should i try and request an amended W2 from my former employer to be safe?

[MarilynG1]

Since you retired and you discount on ESPP stock was not reported on a W-2, you can add this amount as Other Income, Not Reported on a W-2 to your return.

In the Income section, scroll all the way down the topic listings to Other Miscellaneous Income, 1099-A, 1099-C. 

On the next page, choose Add/Update, and say YES to 'did you receive any other wages?'. Choose Reason Code H on the screen where you enter Employer and Amount.

The income will show on Form 1040, Line 1g.  You will be subject to SS and Medicare tax on the income, as if it had been reported on a W-2, on Form 8919.

Here's more info on Employee Stock Purchase Plans.