Where to enter ESPP ordinary income for a qualifying disposition?

Forum|Forum|2 years ago
February 18, 2024
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I have a qualifying disposition ESPP sale. I am able to import the 1099-B form reporting the sale and adjust the cost base. According to https://turbotax.intuit.com/tax-tips/investments-and-taxes/employee-stock-purchase-plans/L8NgMFpFX, I "will still need to report some ordinary income on your 2023 Form 1040, as "compensation."" How should I enter it in turbo tax 2023? None of the categories under "personal income" that seems fit for "compensation" or "ESPP ordinary income"

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Best answer by ThomasM125

Normally, the ordinary income portion of the employee stock sale is reported on your W-2 form in box 1. It may or may not have a reference to it in box 14. It is not subject to social security tax, so you won't see it in box 3. If so, you just need to enter your W-2 form to report the ordinary income. If not, you can enter it as Other Income in the Less Common Income section of TurboTax, which is in the Wages and Income section. Look for Miscellaneous Income at the bottom of the list, and on the next screen choose Other Reportable Income.