US taxes and forms | Robinhood

US taxes and forms

As a Robinhood UK customer, you might receive tax forms from us for US-sourced income.

What’s US-sourced income?

US-sourced income includes payments from US companies, such as dividends, as well as interest and rewards from Robinhood.

Note

Robinhood doesn’t provide tax advice. You should seek advice from a tax professional if you have any questions regarding the impact your investments will have on your income tax and tax filing requirements.

What’s a W-8BEN form?

Form W-8BEN is a required tax form certifying that an individual is a non-US person and a beneficial owner for US tax purposes.

The W-8BEN will ask you to certify the foreign country to which you pay taxes, your residential address in that country, your international tax ID number, and whether or not you want to claim US tax treaty benefits to potentially reduce the amount of Non-Resident Alien (NRA) tax that we’re required to withhold from dividends and interest that you receive.

What’s NRA withholding?

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%, with some exceptions:

  • If you’re eligible for, and have successfully claimed, the UK treaty rate as part of the W-8BEN certification during onboarding, you’ll get a 15% NRA rate.
  • If you’re a non-US person that’s certified on form W-8BEN during onboarding (required step when opening an account with us), you’ll get a 0% NRA rate on US-sourced portfolio interest.

What’s a 1042-S?

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.

Tax timeline

US Tax day is April 15, 2024 for the 2023 tax year, and your Form 1042-S for 2023 will be available by March 15th. We’ll email you when your tax documents are ready for download by the due date. Keep in mind, you won’t get a tax form if your account activity doesn’t need to be reported. For details, check out Why didn’t I get a tax document or see NRA withholding?

Note

In the US, taxes are reported on a calendar year (January 1 to December 31) basis as opposed to how the UK personal taxes fiscal year runs (April 6 to April 5).

Disclosures

Robinhood U.K. Ltd (Robinhood UK) is a company registered in England and Wales (09908051) and is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the US by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood UK doesn’t provide tax advice. For specific questions, seek advice.

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All investing involves risk and a loss of principal is possible.

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

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© 2024 Robinhood. All rights reserved.
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All investing involves risk and a loss of principal is possible.

Robinhood U.K. Ltd (Robinhood UK) is authorised and regulated by the Financial Conduct Authority (FRN: 823590). Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website. Robinhood UK introduces UK customers to Robinhood Securities, LLC for order routing, execution, clearing, settlement, arranging custody services and margin lending to eligible UK customers with margin accounts. Robinhood Securities, LLC is regulated in the U.S. by the SEC and FINRA. Robinhood UK and Robinhood Securities, LLC are subsidiaries of Robinhood Markets, Inc.

Robinhood U.K. Ltd is a private limited company registered in England and Wales (09908051).

Robinhood does not provide investment advice. Individual investors should make their own decisions.

Commission-free trading of stocks refers to $0 commissions for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, other costs such as regulatory fees may apply to your brokerage account. Please see Robinhood UK’s Fee Schedule to learn more.

UK Privacy policy

© 2024 Robinhood. All rights reserved.