Employee Stock Purchase Plan (ESPP) Stock Donation Reported on W-2?

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Topic Author
millionsofpennies
Posts: 11
Joined: Mon May 09, 2016 7:23 pm

Employee Stock Purchase Plan (ESPP) Stock Donation Reported on W-2?

Post by millionsofpennies »

Hi everyone,

Earlier this year I donated some of my ESPP stock (held in E*Trade) to a charitable organization. The stock was held longer than 1 year and has appreciated. The organization is on the list of charities within the E*Trade Charitable Donation site. At the time, the charitable organization sent me a confirmation letter noting how many shares I donated and on which date. This is my first experience with donating stock, but I understand that the value should be tax deductible (https://www.bogleheads.org/wiki/Donatin ... securities).

Recently, my employer sent me a letter stating:

"You are receiving this form because you have transferred Employee Stock Purchase Plan (ESPP) shares out of your E*Trade Stock Plan Account this year. Under a tax-qualified (Section 423) ESPP, taxable income is generated in the year of sale or gift equal to the lesser of either the actual gain upon sale or the purchase price discount at the beginning of the offering. [Employer Name] is required to report this income to the Internal Revenue Services on a Form W-2 for current and former employees. No tax will be witheld on the income reported.

Table: Purchase Period Begin Date, Purchase Date, Purchase Price, Shares Sold, Sale Date, Sale Price

...It is the individual's responsibility to pay the tax liability related to ESPP sales when filing an annual individual income tax return."


QUESTION: I just want to confirm if it is normal procedure to report donated stock on the W-2? Or is there any reason I need to provide the confirmation letter of donated stock to my employer instead of filling out their form? Thanks in advance.
Topic Author
millionsofpennies
Posts: 11
Joined: Mon May 09, 2016 7:23 pm

Re: Employee Stock Purchase Plan (ESPP) Stock Donation Reported on W-2?

Post by millionsofpennies »

Bump. Any comments would be appreciated. Thank you.
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