If you sell shares of company stock and voluntarily withhold taxes to avoid owing in January, what form(s) are needed to report the sale correctly when filing your return to ensure that any taxes paid over the amount truly owed are returned? With those documents, does TurboTax software determine that too much was taken out for taxes at the time of sale and calculate the return?
you need to report the sale. in step-by-step mode you should get to a question that asks about withholding not already reported.
TT will calculate your total taxes owed vs your total payments (and credits) if you have an overpayment it will be refunded unless you ask to apply it to next year
I have re-read your question a few times - withholding is not normally done on stock sales thru a broker, so I will assume you had stock options you exercised then sold? If not, disregard my answer - if yes, you will have the income from the options and withholding reported on your W-2, so when you enter that information into the software, you will be recording the withholding. Then, assuming you sold the stock, you will report the sale on Schedule D - important to realize the basis in your shares will be the option exercise price that was included in your taxable income on your W-2 - if exercised at the current market price then immediately sold, you probably will have little gain or loss on this sale.