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Annotated diagram of Schedule DTax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.

ESPPs: Rules

Can I contribute additional amounts if I want to buy additional shares of stock?

Some companies may allow this, but the practice is not common. When you purchase ESPP shares and they remain in your account, dividends paid by your company may be reinvested in more shares, but not at a discount. Check your plan for your company's policy.

See a related FAQ about the maximum amount, under both the plan and IRS rules, that you can contribute from your paycheck.

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