20 shares were sold to cover taxes so 20 shares of income is in your w2 box 1 with the proceeds going to cover the taxes and expenses. Only 20 shares are reported.
The other 40 shares were distributed, sold, or vested? If the income for the other 40 shares is in your w2, that needs to be tracked/ kept safe until those shares are sold. If sold in 2020, then you can use the basis from whichever w2s included the basis plus sales of expense.
I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your carryover information, and proof of your basis in your various investments. You must keep tax records from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses / carryforwards/basis.
@mkarthik01
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