I receive restricted stock units every year which vest 1/3 each year after they are awarded:
March 2017: 150 RSUs awarded
March 2018: 50 RSUs vest
March 2019: 50 RSUs vest
March 2020: 50 RSUs vest

When do I pay taxes on them? I have not received a tax statement from the brokerage firm except for one year in which I sold the stock.

What's the best strategy as far as what to do with them when they vest?

They are considered income in the year they vest. So you'll have 50 RSUs of income in 2018, 50 RSUs of income in 2019, etc.

Generally, on the vesting date, the company will sell some of your shares to pay the required withholding taxes (Federal/FICA/State). The amount of taxable income would be the price at which they vest * the number of shares. That price would also be your basis for calculating capital gains (losses).

As for strategy, that's up to you. Consider it part of your portfolio and invest as such. Once it vests, there is no real additional advantage gained by holding, unless you would generally hold that stock. Most of the advice given to me has been to sell and invest in other areas.

Good article I found while looking for an example to copy/pasta...

https://www.schwab.com/public/eac/resources/articles/rsu_facts.html

Edited to correct mistake on award/vest.

Appears Sooner Born misread the March 2017 note... Those are shares AWARDED, so no taxation at that point (unless making an 83b election). The rest is spot on.

83b elections are not always available, but if a choice within your plan could be a way to reduce overall tax burden.

Also, if you don't sell shares as they vest, you are subject to normal rules on short-term and long-term capital gains.

You're right. I skipped right over the word award and just read it as vested.

Thanks.

I sell mine immediately so the gain/loss is minimal. Use cash as I please.

So you are taxed twice - once for "withholding" and once for capital gains?

Leander - Ag said:

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So you are taxed twice - once for "withholding" and once for capital gains?

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In most cases the market value is taxed as ordinary income at vesting. The cost basis is set at that time, at the vesting price. When you sell the shares, normal gain/loss rules apply with holding period starting on vest date. The exception is if an 83(b) election is made at the time the award is accepted.

Are there tax benefits to holding longer? I have always heard 2 years.

Leander - Ag said:

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Are there tax benefits to holding longer? I have always heard 2 years.

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Nope. This is a common misconception that falls out of nuances related to ESPP plans.