Non 423 ESPP

[user17737590239]

I am employed by SAP. We have a  non 423 ESPP plan which is taxed through out the year. I have confirmed that the cost basis shown in my brokerage account includes the employer match so does not require adjusting. However, I do not know how to classify the sale of stock I made and which is on my 1099-B. Do I classify it as an ESPP even though it is non 423? Would it be considered a NQSO? Also my 1099 B lumped short term and long term amounts together. Can I still import and correct or should I delete the line entirely and enter manually? Thank you!

[ThomasM125 · Accepted solution]

You would enter it as an employee stock purchase plan (ESPP). It would not be a non-qualified stock option (NQSO) since it is not an option, just a stock purchase plan. Since the correct cost basis is reported on your 1099-B form, you don't need to check the option you will see to correct the cost basis on the screen where you enter the sales proceeds and cost basis.

You will need to enter the sales manually to reflect the correct short and long term gain status, as that will affect how the gains are taxed.