I am also a bit confused about this box. Specifically, what
description I should use in TurboTax for the ESPP amount in
box 14. I have listed below the options it gives me for this
items. (The item is for ESPP Disqualifying of $1,851.89. PS.
I live in Colorado)

Examples of Box 14 Items
Box 14 is available to your employer for providing you
additional information. Our expanded list contains items
known to have an impact on your federal and/or state
returns. Your Box 14 item may not impact your returns and
therefore is not on this list. If you know that your Box 14
item does not impact your federal and/or state returns then
select Other - not on above list. Steps to classify your Box
14 accurately:

1. See if you recognize your Box 14 item in the list below
(this is the expanded list). Make sure you check the common
abbreviations included with each item.

2. If you know your Box 14 item is a mandatory (mandatory
meaning the state requires the tax to be paid) deductible
state or loca tax but it's not listed here, select Other
Mandatory Deductible State or Local Tax Not Listed Above.
This will classify your Box 14 item as a deductible state
tax on your Schedule A, Itemized Deductions.

3. If you know what your Box 14 item is, it has no impact on
your returns, and is not listed here, then select Other -
not on above list.

4. If you do not know what your Box 14 item is, contact your
employer's payroll department or payroll service provider.
They will be able to help you to determine what this item
represents. Description of Expanded List Items:

Other Mandatory Deductible State or Local Tax Not Listed
Above: If you know that you have a deductible state tax and
it is not listed above, select this option. The amount will
be entered correctly as a deductible tax on Schedule A,
Itemized Deductions Charitable Cash Contributions: These are
contributions you donate through payroll deductions. Select
this if your Box 14 item is any type of charitable
contribution.

Wages for SDI, VPDI, TDI, UI, etc: Many times employers will
enter both the wage amount and the deductible tax amount in
Box 14. The wage amount is for informational purposes only
and has no tax implications.

Railroad Employees:
If you are employed by a railroad and covered under the
Railroad Retirement Tax Act (RRTA), it's important that your
tier 1 and tie 2 wages and tax are properly entered and
identified in Box 14.

All of the following apply only to individuals covered under
the Railroad Retirement Tax Act (RRTA):
Railroad Retirement Tier 1 wages
Railroad Retirement Tier 2 wages
Railroad Retirement Tier 1 tax
Railroad Retirement Tier 2 tax
RRTA tips
Code U, V, W, X, Y, or Z: These are codes used by the
federal government. If your Box 14 has one of these codes,
then select this description on the expanded list. Other -
not on above list: Select this if your Box 14 description is
not listed above.

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04/11/2006
file://C:\Program%20Files\TurboTax\Deluxe%202005\32bit\lo cal\dlg\dhtmlHelpItem.htm

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ap wrote:

- quote -

It sounds right to me.
The 'discount' you enjoyed is considered ordinary income and
taxed as such. From your note above, you showed a 29 cent
ordinary income, and a 3 cent capital loss. The numbers add
up, and it matches my experience with ESPP. Your W2 is
complete, it already reflects the 29 cents a share.

JOE

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

ap wrote:

- quote -

Your realized gain is 26 cents (1.90 - 1.64). Your
recognized ordinary gain (should be in Box 1 of your W-2 as
wages) is the discount on the date of purchase = to 29
cents. Your capital loss (long or short depending on how
long you held the shares) is 3 cents. 29 cents recognized -
3 cents recognized = 26 cents realized.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"ap" <corsica[at]ragingbull.com> wrote:

- quote -

Yes. But the discount amount gets taxed as ordinary income
because it's a disqualifying disposition. So you received
0.29/share income and had 0.03/share capitol loss.

- quote -

All you need to do is transcribe the W-2 into TurboTax, it
figures out where all the amounts go.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"ap" <corsica[at]ragingbull.com> writes:

- quote -

Which is correct.

- quote -

There's nothing wrong with that.

- quote -

Yep. You paid $1.64 for the stock and picked up $0.29 as
wage income because of the disqualifying disposition, which
puts your tax basis at $1.93. Since you sold for $1.90,
that's a capital loss.

- quote -

No! That amount (should be, by your employer) already
included in Box 1 wages on your W-2.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I'm using turbotax and I'm very confused about reporting
espp sales.

I'm following the instructions that say that the cost basis
is the price I paid for the shares plus the amount reported
in box 14 of W-2 (discount received).

When I do the above calculation, the adjusted cost basis is
higher than the gross proceeds that are in my 1099-B.

In my particular case, I had a disqualifying disposition in
which the share price went up by a little from my purchase
price.

Purchased Price: 1.64
Purchase Date Fair Market Value: 1.93
Price sold: 1.90

So turbotax is saying I had a capital loss. Is this
possible???

Also, in turbotax I fill out the info from box 14 in the
income tabs. Am I supposed to add that amount to the wages?
I have essentially just transcribed my W-2s.

THANKS!

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >