In terms of the amount of tax to MI, it's not a whole lot. A couple hundred dollars. And it doesn't change my total taxes paid, because I get a tax credit for that against my CA taxes. MI's tax rate is lower than CA's.
Are you using autosale? It sounds like you’re manually selling, perhaps that is why it’s so complicated. I used autosale while I worked at Google and had no problems
I used to use autosale back when it existed. Now it no longer exists, and has been replaced by an ETP program.
It's been a while since I used autosale, but I think the problem still existed then, because I think even with autosale the sale price wasn't identical to the vest price, so there were still loss sales, which could be washed. But I think since the sale happened the same day as the vest, the problem wasn't as bad, because in 31-day months, the loss sale couldn't be washed by the next month vest. So there wasn't the case of constantly increasing complexity, because the complexity would reset in 31-day months.
I tried ETP back when it was introduced. I didn't like it. It's been a while, so my memory of why I didn't like it is a little foggy. For one thing, when you're enrolled, you're not allowed to buy or sell any Google shares manually. One of the biggest problems was that there's a cooling off period, and the shares that vest during that period don't get autosold right away, and you can't sell them manually. I think they get autosold a month or so after vesting. My memory might be wrong, but I think that's what happened. Another thing that annoyed me is that my sells got split across 2 1099-Bs: the 1099-B from my individual Schwab account and the 1099-B from my EAC Schwab account. I think shares that vested during the cooling off period went on one 1099-B and the shares that vested during other times went on the other 1099-B. And somehow in the confusion I ended up with some shares that never got sold at all.
In terms of the amount of tax to MI, it's not a whole lot. A couple hundred dollars. And it doesn't change my total taxes paid, because I get a tax credit for that against my CA taxes. MI's tax rate is lower than CA's.