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I sold all the stock in my wife's ESPP last year. Now I need to account for it on my tax return. I usually use TurboTax Deluxe but may switch to TaxCut this year. I saw reviews that you must use TurboTax Premier if you want TurboTax to handle the sale. I also saw a review for TaxCut that says you have to manually calculated the numbers and enter them on the return.

Has anyone used tax software to handle the calculations for an ESPP?

The price difference between TurboTax Deluxe and Premier is $30. Since I wouldn't need all the other features of Premier, can you do the calculations by hand and enter them directly on the forms in TurboTax Deluxe?

IF
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Has anyone used tax software to handle the calculations for an ESPP?

I have. There's a field on my W2 labeled “OTHCMP” (other compensation) for the reported ESPP income, that Turbo Tax Premier never recognizes when I enter the W2 info. But as soon as I enter the details of the ESPP, Turbo Tax notices it matches up, and asks if that's what the OTHCMP is.

With the year-end statement from the brokerage co. showing the sales details, and the emails from my employer showing the purchase details, its pretty easy. Every question Turbo Tax asks is on one or the other of them.

One year I tried to use Tax Cut, and it didn't seem as clear to me on the ESPP. But that could have been because that was my first (and only) time trying Tax Cut.

I don't know about your other question.

-Joe
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I went to TT premiere this year for this very reason, and it was easy.

I ended up paying $52 at Costco, or I could have done it online at turbotax.com for $40. I hate to say it, but being able to import info from last year's return into turbotax (and being able to compare against prior years' returns) is a big reason I stick with them. I just hate they use that to squeeze more out of you year after year.

If you don't want to go that route, you can probably just calculate your own cost basis, taking into consideration whatever discount your company has already listed on your W2 as other compensation.
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