Tax reporting FAQ
Form 1042-S is an IRS (Internal Revenue Service, the tax authority of the US) tax form that is used to report US-sourced income paid out to non-US or foreign persons, including individuals. These payments may be subject to NRA (non-resident alien) withholding. If you’re certified as a non-US person for tax purposes and receive US-sourced income of $0.50 or more, you may get a 1042-S. The Form 1042-S is also reported to the IRS.
US-sourced income includes payments from US companies, such as dividends, as well as certain interest and rewards from Robinhood. All US-sourced income is reported on IRS Form 1042-S.
Non-US persons are subject to US withholding tax on their US-sourced income. This tax is known as NRA withholding, and is applied at the time of payment. If you have NRA withholding of $0.50 or more, it’ll be reported on a Form 1042-S. The default tax rate for NRA withholding is 30%. Certain holders may be eligible to claim US tax treaty benefits to potentially reduce the amount of NRA tax that we are required to withhold from eligible dividends and other US sourced income that you receive.
You can find your US tax documents for the previous tax year with these steps:
If your tax form has any inaccuracies, we can issue you a corrected form upon request. Some of the most common reasons for requesting a correction include:
Carefully review your tax forms to ensure all the information is accurate. If you find an error, continue reading to learn how to work with us to get a corrected version. If you need a corrected form, you will generally be able to view it 1-2 weeks after the correction has been made.
To update your legal name or correct the spelling, you need to send a request to us with the following information:
We will send you a form to sign to confirm the request. After we get a request with the required information, we will update your name in our system. We may also request additional information.
Address changes and minor name changes generally do not require a corrected Form 1042-S, such as a small misspelling or missing your middle initial.
During tax season, we will upload the corrected IRS Form 1042-S to your app 1-2 weeks after we have made a correction. The new version will include “corrected” in the title with a more recent date than your original Form 1042-S. Be sure you are using the latest version of the app to view your corrected Form 1042-S.
The Common Reporting Standard (CRS) and the Crypto-Asset Reporting Framework (CARF) are global tax transparency initiatives developed by the Organization for Economic Cooperation and Development (OECD) aimed at enhancing the automatic exchange of financial information. CRS was originally implemented in 2016 covering traditional financial accounts and securities, but was recently expanded to encompass digital finance and assets. CARF is being introduced for 2026 to specifically address the information reporting needs resulting from the rise of crypto-assets.
On an annual basis, RHEU is required to share both customer and account information to the governing tax authority in Lithuania.
Depending on your tax residency, the Lithuanian tax authority may share this information with the tax authorities in other jurisdictions applicable to you.
Based on the activity in your account, you may be subject to reporting for CRS, CARF, or both CRS and CARF. An example of account information reported for CRS would be the total cash dividends paid on tokenized security underliers. An example of CARF reporting would be the buy or sell transactions for a given crypto, such as Bitcoin. For the 2025 tax year, only CRS reporting will be required for RHEU. Starting with the 2026 tax year, both CRS and CARF reporting will be required.
Robinhood does not provide tax advice. For specific questions, you should consult a tax professional.