Employee Stock Purchase Plan

Report an option held through an employee stock purchase plan and stock acquired through the plan in Schedule A. In addition, report your continued participation in the plan in Schedule C, Part II. Report options and stock held by your spouse in Schedule A only.

Employee Stock Purchase Plan: Examples

For You

Schedule A

Reporting an Option

Report an option if the value of the option was more than $1,000 at the end of the reporting period, or if the option produced more than $200 in income during the reporting period.

Block A: Provide the exact name of the underlying stock and write “ESPP option.”

Block B: Report the value of the option by marking the appropriate column.

Block C: Report the amount of income produced during the reporting period by marking the appropriate “Amount” column. If the amount of income is more than $200, you also need to report the type of income by marking the applicable “Type” column(s). Employee stock purchase plan options normally do not produce income, so most filers mark the “None (or less than $201)” column.

Reporting Stock

Report the stock and any income from the stock using the instructions in this guide for stock.

Schedule C, Part II

You also need to report your participation in an employee stock purchase plan in Schedule C, Part II.

Terms: Report your participation in an employee stock purchase plan and indicate when your participation in the plan will terminate, which usually coincides with the termination of your employment.

Parties: Provide the name of the employer as well as the city and state in which the employer is located.

Date: Provide the month and year in which you began participating in the plan.

For Your Spouse

Schedule A

Report your spouse’s employee stock purchase plan options and stock acquired through such a plan using the same guidance provided above “For You.”

Schedule C, Part II

Do not report an employee stock purchase plan in which your spouse participates in Schedule C, Part II.

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This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.