Question

ESPP income in W2

Forum|Forum|6 years ago
October 6, 2019
1 reply
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The capital gains from selling ESPP and RSUs are already included in Box1 of my W2. Also the final Qualified/disqualified dispositions and RSU numbers from TurboTax matches with those in W2. However coming to the total income section of TurboTax, the 'Wages and Salaries' shows the number from Box 1 of W2 (which includes ESPP/RSU) and it is again mentioned under 'Capital Gains and Losses' that brings up my total income further and to me it looks double taxation.

For example:

Annual total Salary = 10000

ESPP and RSU income = 1000

W2 Box1 shows = 11000

Now coming to the Total Income section on TurboTax(the very last Income section):

INCOME

=======

Wages and Salaries = 11000 (remember ESPP and RSU already accounted for)

Capital Gains and Losses = 1000 (the exact figure from ESPP/RSU calculations of TurboTax)

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Total Income 12000

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As you could see my total incomes increased by another 1000 though it is already included in my W2 income. What am I missing here? pls help.

TurboTax Premier Windows

Critter

Employee

What is missing is the cost basis on the Sch D ... most brokers do not enter this info for you so you are required to enter the cost basis already reported and taxed on the W-2 ... the Sch D should show a loss in the amount of the brokers transaction fee and NOT the entire sale amount.