ESPP Error

Question

Was filing my return this year and saw it wanted me to carryove my capital gains loss. I thought thats weird, I had made money last year on my espp sale. So i went digging and uncovered the messy truth. I received two 1099-B's last year. I reported Proceeds from one of them and reported my adjusted cost basis from my supplement form from all the sales. Soooooo it looks like I had a $8k Loss when in reality I had a $4k gain. Now, what do I do? Im tarting to freak out.

GeorgeM · Answer

Dear taxblake:

To follow up on the previous post, you will need to amend your 2023 federal tax return—and perhaps your 2023 state tax return—to reflect a capital gain of 4,000.

Regarding your 2024 tax return, ignore the screen which prompts you to enter your carryover loss from the prior year as it appears now that you did not have a capital loss in the prior year.

Here is a link to a Community article which you might find helpful regarding ESPPs and taxation.

https://community.freetaxusa.com/kb/articles/151-what-is-an-employee-stock-purchase-plan-espp-and-how-is-the-income-reported-and-taxed?

Sincerely,

George

Tax Pro

JMSSGV · Answer

You file an amended return for 2023.