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March 14, 2023
Question

I received and sold stock shares from my employer in 2022. When sold I took a loss on the stock. What level of turbo tax do I need to use

  • March 14, 2023
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1 reply

DawnC
Employee
March 14, 2023

You should have a 1099-B to report the sale.   1099-Bs require either TurboTax Premier, Self-Employed, or Premium if using the online version.   Any version will handle employee stock if using the desktop.  

 

When the company buys the shares for you, you do not owe any taxes.  You are exercising your rights under the ESPP (see link for more info).   You have bought some stock.  So far so good.

When you sell the stock, the discount that you received when you bought the stock is generally considered additional compensation to you, so you have to pay taxes on it as regular income.

 

  • If you hold the stock for a year or less before you sell it, any gains will be considered compensation and taxed as such.
  • If you hold the shares for more than one year, any profit will be taxed at the usually lower capital gains rate.

What is Form 1099-B?

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