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How do you report ESPP ordinary income in ProConnect online?

Level 1

I have a client who gifted his ESPP shares to a relative instead of selling them.  It's a qualified disposition.  Per the rules, this means he must recognize ordinary income for the gift in the amount of his discount.

His employer already stated this amount will not be included on his W-2.

It must also be reported in Line 1 wages on his 1040.

How do you enter this in ProConnect online?

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1 Reply 1

If it's with an existing employer, add the bargain element to Box 1 of the W-2 and, if you'd like, include a footnote for that.  You should be able pull the number from F.3922.

“You don’t need to see his identification…These aren’t the droids you’re looking for.”
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