Our company has an Employee stock purchase plan that lets us buy stock at a discount. However, the total value of the stock that was purchased showed up on my W-2 as income, when that is not the true gain. I did sell the stock later for a slight profit, but the actual gain was only about 5% of the amount paid for the stock. My question, is there a form that allows the stock cost basis to be subtracted from the "income" so a true gain is reflected on the 1040? Or did the brokerage make a mistake by putting the total stock value as opposed to the actual gain? The brokerage said that the total purchase amount was the correct amount and I have to consult with my tax advisor in order to figure it out. The net result is my line 1 of the W-2 is too high by the amount of the stock value when it was purchased, and as a result I will end up being double taxed on that amount. Any help is appreciated.