Last year I have four ESPP transactions; three of which are "Disqualified Disposition" and one that is "Qualified Disposition".
I entered the three Disqualified Dispositions and adjusted their cost basis (which are correct when I cross checked by hands), at the end, TurboTax Online asks if the dispositions, let's say $X, are reported on my W-2, I checked YES, since $X is there on my W-2 box 14. If I go to preview 1040, I can see $0 in "Other earned income" (since $X is already included in W-2 box 1).
When I entered the one Qualified Disposition and adjusted its cost basis (which is again correct per hand calculations), at the end, TurboTax Online asks the same question if the disposition, say $Y, is reported on my W-2. Since this one qualified sale is NOT reported on my W-2, I did not check the box.
At this point TurboTax went ahead and change the previous three Disqualified Dispositions to be "Not reported on W-2" as well. Going to preview 1040 shows that now I have $X + $Y in my "Other earned income" and I have a lot more tax to pay.
Is there a way to get around this issue?
