Whenever a stock grant through my employer vests, I always opt to sell to cover my tax obligation. So, for example, if 500 shares vest, I leave with 250 shares and the other 250 are sold to cover my tax obligation right then and there.
The other option would be to take all 500 shares and then pay income taxes later. But I like selling to cover. It may not be the best option, but it suits my personality.
Here's my current situation:
- I vest 500 shares
- I sell 250 shares to pay the taxes (this happens automatically, so I only ever possess 250)
Question: When it's time to do my taxes, how do I claim the income of the 250 shares I have without the government taxing me again?