Does Turbo Tax Premier for Investments adjust ESPP cost basis to avoid double taxation in the case of a disqualifying disposition?

[DDollar · Accepted solution]

Yes.  

TurboTax has an interview for the sale of ESPP stock.  Do not import you Form 1099-B with the sale of the ESPP stock.  Instead, enter it yourself.  To do so in TurboTax, (if using Online be sure you are logged in to your return): 

• Click on Search
• Type “1099-B“ in the Search Window and hit Enter
• Click on Jump to 1099-B
• Click on + Add More Sales
• Answer Yes to: "Did you get a 1099-B or a brokerage statement for these sales?"
• Click on "I'll type it in myself"
• Enter your Brokerage name
• Answer Yes to "Do these sales include any employee stock?"
• Click the box to indicate the number of sales. 
• Click Continue on screen with "We strongly recommend entering your sales from 'Your Broker" one at a time"
• Continue on the screen with "Now we'll walk you through entering the info on your 'Your Broker' 1099-B" and enter the details of your stock sales.

[Edited 3-26-2020]

[lb93]

the calculation of adjustment of cost basis is correct.  However I am no longer employed at that company so no W-2.  It is not including the discounted amount on 1040 line 7.  I upgraded to premier before entering and used the step by step and entered the info from the 3922.  I realize I can override that but I didn't pay for premier to hack it myself.

[ThomasM125]

I ran a calculation through TurboTax and was able to get the ordinary income component to appear on line 1 of form 1040. You should have seen both of these screens when entering your ESPP transactions:

If not, when you entering your form 1099-B information, you need to click on the "Guide me step by step" option:

 

And then make sure you enter the correct information regarding your ESPP stock sale.

[BradsTaxes]

I'm having a difficulty that I am not able to enter the ESPP info along with the stock sales. From the screen-shots you have, the "Guide me step-by-step" is missing. I have TurboTax Premier.

I'm comparing side by side with TurboTax 2019 and this seems to be where things are going wrong. I enter the ESPP information, yet it doesn't appear to update the Cost Basis.

Are others hitting this too?

Note that your title says "100.0000 shares from []" (the stock name is missing compared to 2019). For me, I see " shares from ". Where the number of shares and the company name are both not making it into the guide.

Thank you!