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rknewman47
New Member

What is DQD-ESPP is in box 14 of the W-2 with a number?

This could be related to the Medtronic stock inversion situation.  The number could be the amount of gain from the sale of ESPP-acquired stock. Does TT use this number in it's calculations? 

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Accepted Solutions
TomYoung
Level 13

What is DQD-ESPP is in box 14 of the W-2 with a number?

TurboTax does nothing with that number.  Box 14 is pretty much a 'memo" field where the employer informs you about various things.

Since this is appearing on a W2 it almost certainly can be read as "Disqualify Disposition" which most likely pertains to either stock acquired via an ESPP or an ISO.  The number next to that notation would then indicate the amount of "compensation" - included in Box 1 - that was generated by the disqualifying disposition.  This compensation figure should be added to your out of pocket basis when reporting the stock sale.

Tom Young

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4 Replies
kandiezmoney
New Member

What is DQD-ESPP is in box 14 of the W-2 with a number?

On my W-2 that box was used for the amount of money that was deducted from my income on a pre tax basis. In my case, my required safety shoes that I purchased was taken out of my pay checks weekly for the amount of $10. Over the period of a year I purchased 2 pair so that was part of my amount. Another pre tax item on mine was for dental and vision insurance deducted before taxes were taken out as well. 
TomYoung
Level 13

What is DQD-ESPP is in box 14 of the W-2 with a number?

TurboTax does nothing with that number.  Box 14 is pretty much a 'memo" field where the employer informs you about various things.

Since this is appearing on a W2 it almost certainly can be read as "Disqualify Disposition" which most likely pertains to either stock acquired via an ESPP or an ISO.  The number next to that notation would then indicate the amount of "compensation" - included in Box 1 - that was generated by the disqualifying disposition.  This compensation figure should be added to your out of pocket basis when reporting the stock sale.

Tom Young

Toon99
Returning Member

What is DQD-ESPP is in box 14 of the W-2 with a number?

does that mean box 14 code esppdd is the amount already included in box 1?

also is that amount adjusted the cost basis ? what if there were many stocks i purchase with the company some had cost basis and some cost basis was blank.  how would i apply the box 14 memo to the adjusted cost basis to which stock sold?

AmyC
Expert Alumni

What is DQD-ESPP is in box 14 of the W-2 with a number?

A Box 14 memo like yours generally means it is in your wages. If you have questions about your w2 and what numbers are where and why, contact the issuer to verify. Any taxed income on stock is part of the basis for those shares. You should have records of every share purchased and sold along with the cost, sales, and commissions paid. You should be keeping track of which stocks you are selling and what is left. The IRS recommends you have a spreadsheet. You can track shares, use FIFO, LIFO, etc. You need to have a system and be using it. First In First Out is often the easiest.

 

I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your  carryover information, and proof of your basis in your various investments. You must keep tax records  from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses / carryforwards/ basis.

 

If you do not have the records, the IRS will use zero as a basis.

 

What do you mean by stocks purchased from company, some had basis and some blank? All shares purchased through ESPP would be lumped together for that time period with one sum of money divided among them. For example: You bought 10 shares for $120. Each share has a $12 basis. The broker may or may not know what your employer is doing and what is in your w2. The employer may or may not give them any information or it may not be accurate. This is why it is your responsibility to track them all.

 

@Toon99

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