Selling ESPP after leaving company

[sm3]

Hi,

I have ESPP stock. I sold some company stocks while I was in employed by that company (LotA) and some stock after leaving the company (LotB). Now as with ESPP some part should be ordinary income while other as capital gain. For LotA my W2 includes the ordinary income since I was in the company at that time however LotB's ordinary income is not included in W2. 

Now TurboTax calculates the ordinary income and asks you if that was added in W2 or not but it does that as whole ESPP and not for individual LotA and LotB. So in my case if I select 'Yes it was added in W2' then the ordinary income of LotB is not added to form 1040. If I select 'No it not added in W2' then it adds both LotA and LotB's ordinary income to W2. How can I just make sure to add just LotB's ordinary income to 1040? I am using Desktop version of TurboTax Home and Business. 

[DawnC · Accepted solution]

When you come to the question about the compensation being added to the W-2, mark Yes.  TurboTax will not add any compensation to Form 1040.  Then click on Forms in the upper right-hand corner, and make the change by editing the form titled ESP Comp Wks.  

Edit Part ll, column (f).   This column will show all the compensation (Lot A and B).   Change the amount in column (f) to reflect only the amount that was already included in your W-2 (Lot A).   TurboTax will calculate the difference and automatically fill in column (g) which will be the compensation portion for Lot B.  Only the amount from (g) will be added to your compensation Line 1 of your Form 1040.