Tax Year Prior to 2020: Does turbotax allow me to add a wash sale loss to the cost basis of an espp lot purchased at a discount and properly account for the compensation income?

[HardQuestion]

Purchased stock A as standard stock purchase, then I sold it for a loss, but within the 30 day period I purchased more of stock A under an espp.  I sold both lots.  I believe the cost basis should be adjusted for the espp lot and the compensation income should be reported, but then the cost basis should be adjusted again to add the wash sale to it.  How do I adjust the cost basis to account for the wash sale and also adjust it for the compensation income?  

[TomYoung]

Assuming the compensation has been reported on the W-2 and there's no need to deal with that, then the easiest way to deal with this is to simply enter the sale exactly as reported on the 1099-B - wrong basis and all - and click on the "I'll enter additional info on my own" blue button.  On the next page enter the correct basis in the "Corrected cost basis" box.  The correct basis will be the sum of the 1099-B reported basis, the compensation associated with the sale of the stock, and the deferred loss from the wash sale loss.

TurboTax will report the sale on Form 8949 "as reported by the broker" but will put an adjustment figure into column (g) of the Form, a code "B" into column (f) of the Form, and the correct amount of gain or loss which includes the adjustment.

Tom Young

[HardQuestion]

That all makes sense, but in my case I also need to report the compensation income since it is not on my W2.  How can I do this in turbotax?

[TomYoung]

I was guessing the second sale was a disqualifying sale and the compensation would be included on your W-2.  No?  It was actually a qualified sale where, typically, the compensation ISN'T reported?

[Thomasp307]

where is the  "I'll enter additional info on my own" blue button?

[JulieC14]

The answer posted above is from an older version of TurboTax and the steps listed have changed.   
 

You can choose to enter a 1099-B manually, but selecting the "I'll Type it in Myself" button on the bottom right of the import screen. 

From there, you will be asked to enter the broker/bank name and then decide whether to enter each transaction separately or in summary.  If choosing to enter separately, you can scroll down on the "Now we will enter your sale" screen and select "The cost basis is incorrect or missing on my 1099-B"  See a sample screenshot below.  

After checking that the cost basis is incorrect, continue through the screens until you come to one titled "We noticed there is an issue with your cost basis"   There you can select if you know the correct cost basis and want to make an adjustment, and then a box will open up for you to enter the correct cost basis amount.  See the second sample screenshot below.