I sold ESPP after leaving my employer. I want to understand how do I find out if my ESPP disposition was included in my W2?

Forum|Forum|1 year ago
March 29, 2025
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This is a qualified disposition. I sold ESPP in 2024 (acquired from 2018-2020). Turbo Tax is asking me to confirm if the disposition amounts were included in the W2. Which W2 should I check? I have already left the employer and they have not issued a W2 for 2024.

AmyC

Employee

W2's related to the purchase. You should have form 3922 from when the stock was acquired. Your basis in the stock is the amount you paid plus the discount you received from your employer.

Example: you bought stock for $85 that should have cost $100. You hold it and sell as a capital gain later for $200. Gain is $100.

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myfinance-ngAuthor

Thank you. But am I supposed to pay Ordinary Income Tax on the discount that I received, i.e. $15 in the example? I have already left the employer when I made the ESPP sale and am not expecting a W2 from them. Do I need to self report this amount as ordinary income in the year I sell the ESPP?

RobertB4444

You already paid regular income tax on them. Your employer included that discount ($15 in @AmyC's example) on your W2 when you received it. So you paid regular income tax on it then. Now you're paying capital gains on the sale.

@myfinance-ng

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