Sale to cover taxes is normal. It is a sale of your stocks. Think of it as if you sold the stock and they gave you the money. Then, you gave it to your employer to pay the taxes for you. So, you did get a benefit for selling the taxes.
Report it on your Sch D with any other transactions.
Uncovered means the broker does not know how much you were paid per share. You do, so you need to fill in your basis for the shares sold to cover the taxes. Check your w2 information or ask payroll.
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