Stock sale question. My employer gives a yearly bonus and 50% of the bonus is required to be in RSU's (restricted stock units). It usually takes 1 to 5 years for the RSU's to "vest". Meaning I do not do anything w/ the RSU's until they are "vested". When the RSU's are vested, I am provided w/ a sheet (not a tax form) that details how many shares were withheld for taxes in the act of vesting. For example, if there are 14 RSU's, when they vest my employer may withhold 6 shares for taxes and then that leaves 8 shares deposited to my account.
Questions for when I sell all or a part of the 8 "vested" shares:
(1) Turbotax is asking if these 8 shares that I sold were part of an employer plan, do I choose yes or no?
(2) if the answer to question #1 is yes, do I have to provide any info w/ the sale of the 8 shares about the taxes that were withheld (14 shares minus 6 shares for taxes leaves the 8 shares)
(3) Once RSU's vest, are they still considered RSU's or is it considered just normal stock shares at that point?
In summary, my main overall question is .. since the shares I sell are "vested", do I report the sale as if it never was a part of an employer type plan (meaning just a basic stock sale)? Or do I have to involve the tax info that was involved prior to getting to the # of vested shares. I never do anything w/ the RSU's until they are fully vested.
