I get stock awards through my employer, Microsoft. Are these "Restricted" stock awards? And when granted, they deduct taxes when they vest, how do I report this?

[TomYoung]

The stock you have in hand is certainly not "restricted stock."  I'm guessing that you've received the stock due to the vesting of an RSU (Restricted Stock Units), an RSA (Restricted Stock Awards), a PSU (Performance Stock Units) or some other variation of this theme. 

With all of these plans, the GROSS number of shares you receive, before any withholding of stock or sale of stock for taxes, is considered compensation income and reported as such on your W-2.  You'll see that amount, typically, shown in Box 14.  Instead of getting cash for your services you got stock.  So all of the required reporting here, as far as compensation goes, is handled by simply entering your W-2.  (In the main Box 14 is treated as a "memo" field so entering that amount from Box 14 into the TurboTax interview, or not entering it, should not affect your income or your taxes.  That amount is already included in Box 1 of the W-2.)

The compensation is figured as: (GROSS number of shares awarded) x (per share "fair market value" at the date of the award.)  That per share fair market value is the same as your per share basis in the stock.

The mechanics of how taxes are withheld typically follows one of two paths:

1. The company withholds the requisite number of shares for taxes and you receive the shares "left over."  In this situation all you need to do is enter your W-2, and you're done.
2. The company sells the requisite number of shares for you and uses that cash to pay the taxes.  In this situation you may or may not receive a 1099-B.  If you do receive a 1099-B then you must enter the 1099-B in your income tax return; the IRS will be looking for it.

What's really confusing here if you do get a 1099-B is that the broker, on the face of the 1099-B, reports the basis as $0, which is wrong.  Your basis is (# of shares sold) x (the per share "fair market value" used by your employer to calculate the compensation).  In this case you enter the 1099-B exactly as it reads and then using the TurboTax interview change the basis to the correct amount.  The typical "same day" sale results in a small loss due to selling commissions and fees.

[wells1raw]

Is the gross or net stock used? If net, it seems you are being taxed twice.