ESPP share

[amyonghwee]

I transferred my company's ESPP share from the company stock plan account to my own personal brokerage account. In 2024, I sold these ESPP shares.  My company did not release a W2 form to report the 15% discount given on ESPP shares. How should I report on these ESPP shares sale?

[DavidD66 · Accepted solution]

When you transferred you ESPP shares out of the company stock plan account, they should have issue you a Form 3922 - Transfer of Stock Acquired Through an Employee Stock Purchase Plan. That form contains all the information you need to properly report your sale of ESPP stock.   If you did not receive it, make sure you have all the relevant information or contact your company to obtain the form.  

When you report your enter your Form 1099-B for the sale of the ESPP stock, you will be asked if it was "compnany stock", indicate yes and then indicate it was from an Employee Stock Purchase Plan.  The program will guide you through entering all the information necessary to calculate the gain or loss and the ordinary income component.  If your employer did not report the ordinary income portion, TurboTax will add it to your return.  

For  information on ESPPs, see the following TurboTax article:  Employee Stock Purchase Plans

[Nick_name]

In TurboTax 2024 Premier Desktop, it never asks about ordinary income or gives me the opportunity to say it's "company stock". I've marked the transaction as ESPP, and tried both importing the transaction and entering it manually. Either way, it asks about the adjust cost basis, but not ordinary income.

When I dig into the "Wages, Salaries, & Tips Worksheet", line 5 is where ordinary income from ESPP should go. Clicking on the magnifying glass for that line lets me create a new "Employee stock Transaction Worksheet" for the existing transactions, but the Company Name is set as "Not employer stock" and none of the other information is filled, other than the ESPP checkbox.

I buy Premier specifically so I don't have to do this manually. How do I get TurboTax to actually ask me about my ESPP sales and fill out the appropriate worksheet?

[amyonghwee]

@DavidD66  Thanks for your advice! When I ran the smart check,  on the ESPP sale entry which I did not receive a W2 from my prev employer, the form Summary of Compensation Income From Employee Stock Transactions did capture the correct information, indicating this ESPP sale is not included in W2. But turbotax flagged me to indicate whether this is earned income? I believe I should check YES to Earned Income? Pls advise. Thanks!

[DavidD66]

Yes, you should indicate that the compensation portion is earned income.