How to I adjust misreported ESPP Share Sales Price

Options
Misha
Misha Member Posts: 1 Newcomer

Hello.

I have an employee share purchase program through my employer. My employer sells me company stock at a 15% discount. That discount is taxed as income in my pay stubs.

The brokerage firm shows the cost-basis for this stock at the discounted price, not the fair market value. I recently sold a batch of stocks. How do I show the correct fair market value stock price in my tax returns so that I don't get double taxed for the discount.

Thank you!

Answers

  • AlexO
    AlexO FreeTaxUSA Agent Posts: 74
    Options

    Hello, Misha!

    That is a great question!

    When entering the stock sale within FreeTaxUSA, you will want to select that you have adjustments. You can then select that the basis is incorrect. You'll then be able to enter the adjusted basis, which is the price you paid plus any discount amount included and taxed on your Form W-2.

    Stocks/investments sold are reported within FreeTaxUSA by selecting 'Income' > 'Stocks or Investments Sold (1099-B)'.