Double Tax from ESPP

Intel faangarooo
Apr 17, 2018 12 Comments

My W-2 shows an amount as DQDDIS for ESPP. I also got a 1099-B that shows this income. I just imported both to Turbotax and hoped that Turbotax will handle that but I guess it doesnt. Can you please advise what you do for this situation? Are you manually editing the cost basis in 1099-B?

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TOP 12 Comments
  • Microsoft 4655434b
    Yes
    Apr 17, 2018 0
  • Amazon dalejrjr
    You probably have to enter cost basis for each sale manually. If you sold all, your refund should go a bit up after adding 1099b (loss of brokerage fee). This is true for RSUs at Amazon. Not sure it's the same for ESPP
    Apr 17, 2018 0
  • New Macme2
    I got screwed by this. I'm the same guy who posted questions on TurboTax imports and errors few months ago! It seems I have been doing this wrong and payjng more to IRS.

    Needlee to say I went with a VPN this year and for last years correction.

    While I'm not blaming TurboxTax ( I used for last 19 years, wondering how much I over paid), it's no longer for me - one has to know what you are doing.
    Apr 17, 2018 3
    • Microsoft 🏄 wave 🏄
      Omg dude... if you were maxing ESPP and truly maxing it to the 25K max, and not adjusting cost basis, you’ve been paying in the region of $6K or much more in tax you didn’t have to each year.
      Apr 17, 2018
    • Intel faangarooo
      OP
      Sorry for you Macme2.
      Apr 17, 2018
    • New Macme2
      I don't want to even go back and review my dot com boom taxes... I was part of a hot SW company those days.. Nowadays you get more records from etrade and employers
      Apr 17, 2018
  • Hortonworks ruJB85
    This is very common. I usually try to save my file and write down the exact amount I owe/receive before doing espp. Then the amount after espp should be similar because I sell my espp right away. If the amount is a big difference, then you did it wrong. Also espp requires the highest paid turbo tax version. Not the cheap deluxe version.
    Apr 17, 2018 2
    • Intel faangarooo
      OP
      Yeah, I use premier version. However, it seems so unfair that TurboTax cant handle this simple thing after feeding it $100. I mean it has all the info to do that correctly but why not do it? Another option is that company doesnt put anything for espp disposition into W2. That would make life easier.
      Apr 17, 2018
    • Hortonworks ruJB85
      It is not a simple thing. Importing does not contain all the espp information. 1099B does not contain all the espp info. 3922 has the info. If you don’t have 3922, then you have to manually find all the info yourself which can take 2+ hours finding when you buy, discounts price, cost basis, and many other complicated terms used in ESPP.
      Apr 17, 2018
  • Juniper a0j6g2
    Go to the 1099-b stock section and click "need additional review " for those stocks/lot. Select "guide me step by step" options and thats where these will get marked for espp.
    You will also need your employer provided 3922 during that.
    Apr 17, 2018 2
    • Intel faangarooo
      OP
      I didnt get 3922.
      Apr 17, 2018
    • Juniper a0j6g2
      Check back with your employer/hr. They mail it home and can regenerate it for you. Its a required doc for espp & rsu reporting.
      Apr 17, 2018

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