ESPP qualified disposition (Employee Stk Purchase Plan)

[KJ Judd]

Client sold Employee Stock Purchase Plan (ESPP) stock in a qualifying disposition. Information from the company gives the amount to be taxed as ordinary income. Where do I report the ordinary income portion? Page 1?

The information also says "the income from the 15% discount will NOT be included in box 1 on your Form W-2." So I know the company did not pick it up there. My first time with a ESPP. I've done stock options where it's included on the W-2.

[joanmcq]

Part thats ordinary income goes on line 7 and is added to basis. rest is long or short term gain.

[KJ Judd]

That makes sense. I was confused because the company computed the amount but didn't add it to wages. Thanks.