Normally the fair market value of the RSU shares are included in your W2 Box 1 income. That includes those shares withheld to pay taxes. Since that income has already been recognized on the W2, it does not need to recognized again on Schedule D. Likewise, the Federal, Social Security, Medicare and State withholding for that RSU income will be already be included in W2 Boxes 2, 4, 6 and 17 respectively.
If you enter sales transactions for the withheld shares, you could be double-taxed on the withheld shares.
I have had RSUs handled by both Morgan Stanley and E*Trade and neither reported the sale of withheld shares 1099-B. However, if you did see them on a 1099-B I would read it carefully to see if the transactions were reported to the IRS. If not, I would not enter them in Turbo Tax unless you are convinced your company did not include them as Box 1 income.
Finally, Be sure to download and read all the supporting documents from E*Trade pertaining to stock plan transactions.
