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

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

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]

 

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New Member

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

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]

 

View solution in original post

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

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.

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

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.

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