RSUs are relatively simple. When the RSUs vest, their value on that day is taxable income, which should be reported as wages in box 1 of your w-2. Because you are taxed on the full value on the vesting date, that value is the cost basis. Since units that were withheld to pay taxes were reported as a sale, you do not need to worry about the interview questions about units withheld to pay taxes. You just report the two sales transactions - with an adjustment, if necessary, so that the cost basis reflects the value on the date of vesting. Lets say your RSU award was 100 shares, and the value on the day they vested was $75 per share. Your income added to wages would be $7,500. Next, 25 shares were sold for $75 to pay taxes, leaving you with 75 shares which you also sold for $75/share. You have two sales to report: 1) 25 shares sold for $75 per share with a cost basis of $75 per share. 2) 75 share sold for $75/share. Both result in a gain of zero. If either sale had a different sales prices than the price at the time of vesting, then there would be a gain or loss on the sale.
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